Tariff increase and forex policies trigger Nigeria’s low cargo throughputs

The government’s lack of capacity to reduce tariffs and foreign exchange (FX) crisis will continue to give other West and Central African countries a comparative advantage ahead of Nigeria in the maritime business.

Already, Togo has overtaken Nigeria to become the leading port in West Africa. The latest United Nations (UN) report said Togo recorded 1, 725, 520 twenty-foot equivalent (TUEs) cargo throughput in 2020 while Nigeria recorded 1, 528, 520 TUEs in the same year, thereby losing over 196, 750 TUEs or 30 per cent of container traffic to Lome port.

There are also reports of diversion of Nigerian-bound cargoes to Cotonou, Cameroon and Ghana among others. This led to a remarkable increase in traffic in the countries in recent years.

Also, ports within the region have positioned themselves to transhipment hubs and are ready for participation in the African Continental Free Trade Area (AfCFTA) regime, experts have noted.