Nigeria's Export Route Disrupted by Gulf Shipping Crisis

Nigeria's $400 million export route is in jeopardy as major shipping lines, including MSC, Hapag-Lloyd, and CMA CGM, suspend operations to Gulf ports due to escalating geopolitical tensions in the Middle East. Muhammad Gummi, Chief Executive Officer of Baneen Nigeria, reported that shipments of sesame seeds and cashew nuts, which left Apapa Port in Lagos on February 26, are now stranded at sea.

The situation has resulted in extraordinary surcharges, with MSC introducing a $2,000 war surcharge per container, while Hapag-Lloyd and CMA CGM have implemented emergency fuel surcharges ranging from $75 to $350 per TEU. Exporters face significant financial strain, with potential losses as they are forced to sell goods at lower prices.

Otunba Oladunjoy, Chairperson of the Cocoa Processor Association of Nigeria, highlighted that the shipping crisis could lead to penalties for delayed shipments, further complicating Nigeria's efforts to maintain its non-oil export earnings, which are projected to drop by 8-12% in the final quarter of 2025 compared to the previous year.