SEREC Advocate Urgent Reform in Port Charges Governance After Apapa Protest

… Warns of ₦1 Trillion Annual Losses Without Port Charges Reform

BY KESSIENNA SHEPHERDS

The Sea Empowerment and Research Center (SEREC) has submitted a policy memorandum to the Ministry of Marine and Blue Economy, urging urgent reforms in port charges governance following the slightly disruptive protests at the Apapa Port corridor earlier this week.

In the copy of the policy memorandum made available to Pinnacle Time, the think tank warns that Nigeria risks losing over ₦1 trillion annually if regulatory gaps persist, undermining inflation control, trade competitiveness, and the Marine and Blue Economy’s growth agenda.

Background: Protests Expose Fragile Port Governance

The Apapa corridor, which handles 60% of Nigeria’s containerized imports (1.5–1.8 million TEUs annually), was paralyzed after freight forwarders protested sharp increases in shipping line and terminal charges.

The group warned that incremental charges of ₦150,000–₦250,000 per container could add ₦225–₦450 billion yearly to the economy’s cost burden. In spite of the fact that the Nigerian Shippers’ Council (NSC) stepped in to suspend the charges aftermath of the protest, SEREC argues the episode revealed systemic weaknesses in regulation.

Key Findings: Financial and Economic Implications

SEREC’s position indicate that while port charges now account for 30–40% of landed import costs, driving inflationary pressures, the protests cost ₦3–₦5 billion daily in delays, demurrage, and lost productivity.

Regulatory ambiguity raises investor risk premiums by 3–5%, inflating long-term service costs. Without reform, Nigeria faces ₦500–₦700 billion annual inefficiency losses and risks losing 10–15% of West African transit cargo to rival ports.

SEREC’s Financial Impact Summary

This looked into policy area/issue, current situation, financial/economic impact, and projected impact with reform.

Incremental Shipping & Terminal Charges: ₦150k–₦250k per container₦225–₦450bn: Annual burden          ₦200–₦400bn savings.

Inflationary Effect of Port Charges: Logistics = 30–40% of landed cost adds 0.7–1.2% to inflation, reduced pass-through, better inflation control.

Operational disruption from protests  shutdowns: Obstruction  ₦3–₦5bn daily losses, near-elimination via dispute resolution.

Regulatory Ambiguity & Investor Risk Premium: Unclear tariff approval raises capital cost 3–5%, lower risk premium, improved confidence.

Trade Competitiveness & Cargo Diversion: High port costs versus peers: 10–15% cargo diversion risk plus, retention and recovery of transit cargo.

Annual Trade Inefficiency Losses: Delays, excessive charges impacts ₦500–₦700bn losses.

Standing Port Charges Forum, Non-existent: N/A    Cost ₦300–₦500m; avoided losses ₦50–₦100bn.

Litigation & Liability Risks: Rising legal exposure in the range of ₦100bn potential claims   risk containment via conduct enforcement.

Marine & Blue Economy GDP Risk: Policy instability threatens ₦7–₦10trn GDP target, efficiency gains add ₦1–₦2trn GDP while overall net effect is caused by fragmented regulation, and high cost, leading to instability with a net positive impact of ₦1trn annually.

Critical Observation

SEREC stresses that port charges governance is not a sectoral issue but a macro-economic lever. Every ₦1 saved in port inefficiency directly lowers inflation, boosts competitiveness, and strengthens GDP growth.

Policy Recommendations

Accordingly, SEREC proposed the following:

-Binding tariff review and approval frameworks with cost-justification disclosures.

-A standing mediation forum to resolve disputes before they escalate.

-Transparency in regulatory communication to reduce uncertainty.

-Enforcement of professional conduct standards to prevent unlawful protests.

-Alignment of port regulation with Marine and Blue Economy objectives, potentially adding ₦1–₦2 trillion annually to GDP.

Conclusion

SEREC’s Head of Research, Fwdr. Eugene Nweke, described the Apapa protest as a “policy stress test” exposing the cost of weak regulation. “When regulation fails, the economy pays. When regulation is predictable, the economy gains,” the memorandum stated.

The think tank urges the Honourable Minister to act decisively, positioning port charges governance as a cornerstone of Nigeria’s inflation control and trade competitiveness strategy.