SEREC warns that regulatory gaps in the Nigerian maritime sector cost the economy N500–N700bn annually and threaten trade efficiency and competitiveness

The Sea Empowerment and Research Centre (SEREC) has warned that persistent regulatory gaps in Nigeria’s maritime sector are costing the economy between N500 billion and N700 billion annually.

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The warning was contained in a policy memorandum on Wednesday, signed by SEREC Head of Research Eugene Nweke and addressed to the Minister of Marine and Blue Economy, Adegboyega Oyetola.

The memorandum also included a post-event assessment of recent disruptions at the Apapa Port Corridor, which followed the shutdown of a shipping company by agents protesting increases in freight rates.

SEREC noted that regulatory weaknesses and uncoordinated port charges have direct economic, fiscal, and inflationary consequences.

“If current regulatory gaps persist, Nigeria faces annual trade inefficiency losses estimated at N500 N700 billion, driven by excessive charges, delays, and uncertainty,” the memorandum stated.

The group added that logistics-driven inflation could rise by 0.7 and 1.2 percentage points annually and warned that 10 and 15 per cent of West African transit cargo could be diverted to neighbouring ports.

Highlighting recent increases in shipping line and terminal charges, SEREC explained that the Apapa Port Corridor handles over 60 per cent of Nigeria’s containerised imports, roughly 1.5 and 1.8 million twenty-foot equivalent units annually.

Even incremental charges of N150,000 and N250,000 per container could translate into an aggregate economic burden of N225 and N450 billion annually, costs ultimately borne by manufacturers and importers.

While acknowledging that the Nigerian Shippers’ Council’s suspension directive has offered short-term relief, SEREC stressed that systemic regulatory weaknesses remain, with port and shipping charges now accounting for 30-40 per cent of total landed costs for some imports.

“Every 10 per cent increase in logistics costs is conservatively associated with a 1.5–2 per cent rise in consumer prices, particularly for food, pharmaceuticals, and industrial inputs,” the memorandum said.

The group warned that physical shutdowns disrupt cargo clearance cycles, costing an estimated N3–N5 billion daily in demurrage, storage, and lost productivity.

It also highlighted that unclear distinctions between tariff consultation and approval create pricing uncertainty, discourage long-term investment, and structurally raise port service costs by increasing required returns on investment by 3–5 per cent.

To address these challenges, SEREC recommended the establishment of a binding national tariff review and approval framework, a potential reduction of unjustified charges by 10–20 per cent, and the creation of a standing port charges review and mediation forum.

According to the group, such measures could save the country N250–N500 billion annually while improving trade efficiency and adding N1–N2 trillion to GDP through reduced costs and competitiveness gains.

The memorandum followed recent protests by freight forwarding practitioners over increased shipping line and terminal charges, which culminated in the temporary shutdown of a shipping company and significant disruption at the Apapa Port Corridor.

SEREC is a policy research and advocacy organisation focused on maritime, trade, and port sector reforms in Nigeria.

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It engages in research, analysis, and policy recommendations to strengthen regulatory frameworks, improve efficiency, and champion sustainable economic outcomes in the maritime and trade ecosystem.