Nigeria Loses N2.5 Trillion Annually to Port & Maritime Logistics Inefficiencies — LCCI!

Sele Media Africa
www.selemedia.org
Reported by Amos Dachung | Sele Media Africa Reporter

Lagos — Nigeria is reportedly bleeding N2.5 trillion every year due to inefficiencies in its ports, maritime infrastructure, and underlying logistics systems, according to a report by the Lagos Chamber of Commerce and Industry (LCCI). The shortfall is undermining trade competitiveness, increasing costs for businesses, and discouraging foreign and domestic investment. [1

Key Causes of the Losses

• Port Congestion & Delays – Frequent gridlocks at Lagos ports, especially Apapa and Tin Can Island, lead to long dwell times for containers. These delays crank up demurrage charges and raise the cost of goods. [1]
• Poor Infrastructure & Under‑Automation – Much of the port infrastructure is outdated and lacks modern automation. Manual procedures prolong clearance processes, with bureaucratic bottlenecks compounding the inefficiency. [1]
• Logistics & Inland Connectivity Deficits – Inadequate road and rail links connecting ports to hinterlands force heavy reliance on road transport, which is longer, slower, and more expensive. [1]
• Regulatory Burdens & Multiple Checkpoints– Cumbersome customs processes, overlapping regulatory requirements, and multiple checkpoints add redundant cost and time. [1]

The Impact on Businesses & Trade

• The losses escalate import and export costs, making Nigerian goods less competitive in regional and global markets. [1]
• Manufacturers depending on timely arrival of raw materials suffer losses as delays affect production schedules. [1]
• Investors may prefer neighbouring countries with more efficient ports, meaning lost opportunities for jobs and revenue in Nigeria. [1]

What Experts Recommend

To plug these losses and improve the maritime logistics environment, stakeholders are pushing for:

1. Modernisation & Automation of port operations to shorten processing times and reduce manual delays.
2. Upgraded road and rail infrastructure to improve cargo evacuation and reduce transport costs.
3. Streamlined regulatory processes and fewer checkpoints to reduce friction in trade flows.
   4. Better coordination among port agencies to eliminate overlap and conflicting mandates.
   5. Use of digital platforms and transparency tools to help stakeholders track cargo, taxes, and delays.

About The Author