White Paper Warns of Sharp Practices Threatening Nigeria’s Shipping Sector

… May Derail National Single Window (NSW) Regime

BY KESIENNA SHEPHERDS

A new public white paper has raised alarm over entrenched sharp practices and systemic failures in Nigeria’s shipping and ports ecosystem, warning that unchecked inefficiencies are costing the economy hundreds of billions of naira annually.

The report, prepared by the Sea Empowerment and Research Center (SEREC), highlights widespread concerns including arbitrary charges, prolonged refund delays, speculative demurrage billing, including unauthorized container diversions.

It also alleges risks of regulatory capture through political lobbying and weak enforcement. According to the paper, Nigeria’s ports handle between 1.5–1.8 million containers annually, with Apapa alone processing over 60 percent of trade.

SEREC notes that yet, an unexplained shipping line charge of ₦150,000–₦250,000 per container imposes an annual burden of up to ₦450 billion. The white paper signed by SEREC’s Head of Research, Fwdr Eugene Nweke stated that logistics costs now account for as much as 40 percent of landed import costs, and is contributing directly to inflation.

The report further warns that operational disruptions and artificial bottlenecks drain ₦500–₦700 billion each year in inefficiencies, demurrage, and lost productivity.

SEREC also criticized the absence of published findings from a 2025 National Assembly hearing into shipping line practices, saying the lack of transparency undermines legislative credibility and emboldens impunity.

The paper cautions that Nigeria’s planned National Single Window (NSW) digital regime could fail if current practices persist, turning into “a digital overlay on analogue abuse” rather than a tool for trade facilitation.

While Nigeria already has regulatory frameworks such as Minimum Service Standards and international conventions, the report says enforcement remains weak. It calls for statutory refund timelines, prohibition of speculative billing, mandatory local cargo release authority, and safeguards against regulatory capture.

“Nigeria cannot achieve port efficiency, inflation control, or Blue Economy growth while sharp practices remain normalized and accountability remains negotiable,” Nweke said.

The white paper is believed to have been submitted to the National Assembly, the Ministry of Marine and Blue Economy, the Nigerian Shippers’ Council, and industry stakeholders for urgent policy action.