Nigeria's ports are facing a significant decline in activity as importers increasingly turn to neighboring countries, such as Togo and Ghana, to avoid exorbitant port charges. In less than a month, multiple government agencies, terminal operators, and shipping companies at Nigerian ports have raised their fees by nearly 100%, making cargo clearance unaffordable for many businesses.

The Lagos port, in particular, has seen a sharp decline in activity, undermining Nigeria's ease of doing business agenda. According to The Guardian Nigeria, clearing costs across Nigerian ports have surged, with the price of processing a 40-foot container rising from N18–20 million to N26 million, while a 20-foot container has nearly doubled from N10.5 million to N20 million.

As a result, Nigerian ports are rapidly losing their competitive edge, forcing importers to shift to Ghana, Togo, and Benin Republic, jeopardizing Nigeria's historic role as the primary hub for West African-bound cargo. According to Nigerian Ports Authority (NPA) Managing Director, Dr. Abubakar Dantsoho, the country's ports now handle fewer than two million Twenty-Foot Equivalent Units (TEUs), despite being the intended destination for 70% of the region's trade.

The recent 15% increase in port charges, announced by the NPA, has sparked widespread criticism from stakeholders. The move, led by Dr. Dantsoho, aims to enhance competitiveness and drive infrastructural development, aligning NPA's facilities with global standards. However, stakeholders fear the increased port charges, coupled with other charges from the Nigeria Customs Service, will severely impact businesses.

Nigerian manufacturers are pushing back against the NPA's decision, arguing that the move will drive up production costs, leading to higher inflation. According to Segun Ajayi-Kadir, MAN's Director-General, the timing of this increment was wrong, as businesses are already struggling with rising operational costs, high foreign exchange rates, and astronomical energy costs.

Ajayi-Kadir emphasized that imposing additional financial burdens on manufacturers will only exacerbate the challenges faced by the real sector. This concern is shared by other stakeholders, who are worried that the increased port charges, combined with the recent introduction of a 4% Free On-Board (FOB) charge on imports by the Nigeria Customs Service, will have a devastating impact on businesses and the economy as a whole.

The implications of this trend are far-reaching, threatening Nigeria's position as a regional trade hub and potentially leading to significant economic losses. As importers continue to abandon Nigerian ports, the nation's economy will likely suffer, and its competitiveness in the global market will be severely compromised.

In conclusion, the rising port charges in Nigeria have sparked a crisis that threatens the nation's historic role as West Africa's primary cargo hub. As importers flee to neighboring countries, the Nigerian government must take swift action to address the concerns of stakeholders and restore competitiveness to its ports. Failure to do so will have far-reaching consequences for the nation's economy and its position in the global market.