Nigeria's Maritime Hub Ambitions Hindered by Congestion

Alabi identifies port and terminal congestion as the primary economic bottleneck undermining Nigeria's maritime hub ambitions. In Lagos (Apapa/Tincan), the average cargo dwell time is 18–21 days, compared to 5–7 days in Ghana and four days in Cotonou.

This congestion leads to increased storage, demurrage, trucking, and financing costs, with Nigeria's logistics and clearance costs estimated to be about 30 percent higher than those of West African peers. Consequently, congestion and process delays can add 20–30 percent to the final landed cost of imports.

Nigerian operators face challenges such as high capital expenditure and limited access to dollar-denominated finance, compounded by regulatory uncertainty and competitive disadvantages against global carriers. The Nigerian Maritime Administration and Safety Agency's Cabotage Fund, intended to alleviate these issues, has not been effectively utilized.

Overall, Nigerian importers and exporters incur higher shipping-related charges than their counterparts in Ghana and Ivory Coast due to elevated port-side and inland costs.