Port costs, an antiquated clearing procedure, and a lack of automation work against the effectiveness and efficiency of Nigerian seaports. Nigerian ports are now ineffective and undesirable to importers as a result of these issues.
And due to the inefficiencies, importers divert cargoes to more efficient seaports in neighboring countries and smuggled through the country‘s porous borders making Nigeria lose several billions of naira yearly.
The losses, are from revenues accruable to government in earnings, revenues that range from ship berthing fee, three per cent levy for the Nigerian Maritime Administration and Safety Agency (NIMASA), import duty collected by the Nigeria Customs Service (NCS), on cargoes brought into the country among others.
For instance, data from the Nigeria Shippers‘ Council (NSC), indicated that Nigerian ports have three free storage days and five demurrage free days, which is low compared to neighbouring Benin Republic, which has 10 demurrage-free days. Ghana, on the other hand, has eight demurrage-free days.
Meanwhile cargo dwell time (time to clear cargo) takes between 20 and 28 days in Nigerian ports, while in Benin Republic, it takes between 10 and 15 days. For Ghana, it is between 12 and 14 days and Togo eight and 12 days.
Port cost is another disadvantage of Nigeria port. Nigeria ports are described as the most expensive among its peers in neighboring countries. From un-receipted payment to double taxation and high import duty payment among others.