Clearing a Container in Cotonou Costs Half of Nigerian Port Rates

LAGOS — A striking new comparison has emerged that captures the depth of Nigeria’s port competitiveness crisis. Vanguard reported on Wednesday that clearing a 20-foot container at Cotonou Port in Benin Republic costs between N7 million and N8 million. The same process at Nigerian ports costs between N14 million and N15 million, and can reach N25 million at ex-bonded terminals.

The N7 million to N18 million gap per container is the financial logic driving Nigerian importers to route their goods through Cotonou rather than Lagos or Apapa. Importers save N3 million to N4 million per box by using the Benin Republic port. For businesses that clear hundreds of containers annually, the savings run into billions of naira.

This practice, sometimes called cargo diversion, costs Nigeria enormous Customs revenue while simultaneously generating income and employment for Benin Republic. Nigerian port operators and logistics companies lose business. Truck drivers, clearing agents, and port workers all feel the impact.

What Makes Nigerian Ports More Expensive

Multiple factors drive Nigerian port costs above regional competitors. These include higher Customs charges, longer processing times that increase demurrage costs, multiple agency fees, and the general inefficiency of the port system. PEBEC has worked to reduce some of these barriers, but the cost gap with Cotonou remains enormous.

Infrastructure is part of the problem. Cotonou Port has invested heavily in logistics efficiency. Nigerian ports, particularly Apapa, suffer from road access problems, congestion, and inadequate terminal facilities that add time and money to every consignment.

Nigeria Customs Service said it is reviewing its fee structure in consultation with the Ministry of Finance. However, port users said the review process has been slow and its outcomes uncertain. They called for a comprehensive port reform package that addresses costs, infrastructure, and processing efficiency simultaneously.