Business

N400bn goods rot away over demurrage, shipping costs

Published

4 years ago

October 10, 2022

There are indications that clearing processes at the nation’s major sea ports may have worsened as major congestion is building up following increase in incidences of container abandonment by importers.

Vanguard learnt that abandoned containers are now over 7,000, which have already fallen into classification as over-time cargo and accumulating huge demurrage.

Also, new containerized cargoes arriving at the port is estimated at about 2,000 in the past one month. They are expected to face the same challenges that have forced earlier ones into abandonment.

Key challenges, according to the importers and clearing agents range from use of manual cargo inspection by the Nigerian Customs Service, NCS, to rising cost of clearing associated with corruption and exchange rate volatility.

The importers and clearing agents have put the market value of abandoned cargoes at about N400 billion.

The cargoes have accumulated over N60 billion demurrage and associated costs this year alone, and the amount is rising daily.

Vanguard findings revealed that while terminal operators have slammed about N22.5 billion as rentals for the cargoes in their spaces in the first nine months of this year, shipping companies’ demurrage charges is put at N37.8billion during the same period.

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A breakdown of the above figure showed that shipping firms collect approximately N20,000 per day for a container while same container attracts a fee of N12,000 per day by terminal operators.

Shipping industry operators explained that the Customs insist on not using digital scanners to inspect the cargoes, a situation which leads to long delays in clearing process and subsequently forcing cargoes to accumulate high demurrage and rental costs.

Consequently, the importers, according to Customs agents, are forced to abandon the cargo, adding that as at June this year, over N400 billion worth of cargoes have been affected by this situation.

The clearing process is also said to be tainted with corruption as freight forwarders claim they are often pressured to part with money to enable fast-track inspection.

Confirming the development, Mr. Lucky Amiwero, President of the National Council of Managing Directors of Licensed Customs Agents, NCMDLA, said that terminal operators are just having a field day making money from the Nigerian port industry.

Port industry stakeholders have specifically attributed the crises to manual examination of cargoes by the Nigerian Customs Service, NCS, despite the availability of digital scanning machines.

Nigeria is said to be one of the few countries in the world still using manual examination for cargo clearance, making the country’s ports uncompetitive against those of neighboring countries.

It will be recalled that the Customs procured about four scanning machines over a year ago at a total cost of about US$160 million.

However, the installation and utilization of the machines have been surrounded by controversies till today.

While the Service attributes the delay to the training time for its personnel that will operate the scanners as well as other reasons, some stakeholders are of the opinion that the Service is deliberately refusing to deploy the machines because the 100 per cent physical examination creates opportunity for NCS operatives to seek and collect gratifications for cargo clearance.

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Consequently, the Service still relies on manual examination of cargoes, a process which the stakeholders say is causing the delays in clearing cargoes while spaces at shipping terminals are being taken over by uncleared goods and shippers are complaining bitterly.

Financial Vanguard also learnt that there are many categories of trapped containers including export goods with many agro-perishable already rotten in the various ports.

There are also import cargoes that have been abandoned as result of being trapped and eventually caught up by the variations in exchange rate and tariffs applied by the Customs.

Moreover, Financial Vanguard learnt that a new problem has recently been added to the list with the trapping of monies paid by importers as import duties in a bank that has been suspended by the Customs for non-remittance of money collected to the Central Bank of Nigeria, CBN.

One of the importers told Financial Vanguard that “as the demurrage continues to mount daily, the congestion is getting worse and shipping companies and terminal operators are not interested in issues leading to delays and abandonment of cargoes at the ports. The cargoes are in their facilities and you have to pay for it.”

But a staff of one of the leading terminal operators told Financial Vanguard that “this does not help the terminal operators because terminal operators trade their spaces. The container terminal yard already has uncleared cargoes eating up the spaces. So when fresh containers arrive, we always have issues with space. Where to keep newer cargoes is always a dilemma because the old ones that arrived earlier are yet to be cleared due to the slow nature of Customs examination.”

He further lamented: “When the scanners arrived last year September, we were happy because to us, that should signal the end of physical examination of cargoes at the ports.

“Examining cargoes physically is a very slow process. Imagine the amount of containers that arrive our ports every day; how many can Customs officers examine physically on a daily basis? Customs officers are human beings and have their limits.

“If Customs does not examine these containers, they cannot leave the ports. But the form of examination being used is sluggish. Thus, the number of uncleared containers cluttering the ports keeps rising. It’s a dilemma that we find ourselves in the ports.

“The scanners are right there in the port. They are brand new but are not being used. It’s such a confusing situation that we find ourselves at the Apapa ports.”

Customs explains

The Customs seems to be in agreement with the need to deploy and use the scanners.

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Immediate past Public Relations Officer of Onne Customs Command, Ifeoma Onuegbo, had earlier explained that the one scanner left for the Command has since been installed, but Customs agents in the command said the scanner has not been functioning properly contrary to the position of Onuegbo, who explained that the only problem was that the lone scanner is not enough to service the volume of cargo passing through the Command.

At the Apapa Customs Command, the equipment has not been put to use one year after delivery and the Command headed by Comptroller Yusuf Malanta blamed the development on ongoing works on the Lagos-Ibadan standard gauge railway track.

However, Abubakar Usman, Public Relations Officer of Apapa Area 1 Command told Financial Vanguard that modalities are complete for deployment of the scanners.

He said they are waiting for the scanners to be commissioned. He also said it is not true that the Service is deliberately delaying the deployment of the scanners for personal gains.

He noted that what is referred to as delay is preparation time.

Efforts to speak with the new Public Relations Officer of Tin-can Island Command, Nkiru Nwala, was not successful but Vanguard authoritatively gathered that the two scanners at Tin Can Island Command are also yet to be deployed.

Reacting to the issues, the spokesman of the Nigerian Customs Service, NCS, Mr. Timi Bomodi, a Deputy Comptroller of Customs, told Vanguard that the scanners are ready to be deployed adding that its deployment will be before the end of the year.

Bomodi said: “Very soon all the scanners will be put to use very very soon, we are waiting for a date for the Minister of Finance to pick a date for the commissioning and deployment of the scanners.

“Yes, definitely before the end of the year, it is just the Minister’s schedule that is delaying it, once she tells us what her schedule is and she picks a date, we are ready to go.”

But recall that the Comptroller-General of Customs, Col. Hameed Ali (rtd), had said in the past that the Service will continue with 100 per cent examination despite availability of scanners because importers are not sincere in their declaration.

Stakeholders’ perspectives

Former National Public Relations Officer of the Association of Nigeria Licensed Customs Agents, ANLCA, Joe Danni, insisted that the Customs is deliberately delaying the deployment because it wants to continue with 100 per cent physical examination which gives them opportunity to interface with importers and their agents directly.

He said what is needed is “re-calibration” which is adjusting the equipment to suit the Nigerian environment, which is what is taking the Service over a year to do.

He stated: “What they want is to continue making their personal money, they want to continue the direct interface which will give them the opportunity to demand ‘settlement’.”

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Speaking on the development, Yinka Aroyewun, president, Council of Maritime Trucks Unions and Association, COMTUA, said that several factors are responsible for containers being trapped at the ports.

On why Customs is not operating with scanning machines at the ports, Aroyewun said: “To be honest with you, after scanning, in some cases, you may need physical examination because the scanner may not be able to detect certain things; it happens.

“But the reduction of human interference which is going to be the major mile covered by scanners is not going down well with our regulating agencies. So those are some of the reasons I think Customs, in some cases, is not comfortable using scanners”.

He suggested that a way to get it right at the ports is for government to bring its political will to bear.

“We need government’s genuine political will. Apart from political will, we all need to be patriotic; all of us and the agencies of government or the regulatory agencies the Nigerian Shippers Council, the Nigerian Ports Authority, and the Council for the Regulation of Freight Forwarding in Nigeria, to come alive to their responsibilities,” he added.

President of the National Council of Managing Director of Licensed Customs Agents, NCMDLCA, Lucky Amiwero, had earlier told Vanguard that the old scanners operated by former service providers, and installed in all the ports and border stations could still be serviced and put to use.

Amiwero stressed that the Customs deliberately left the million dollars equipment acquired through Build Operate and Transfer, BOT, abandoned.

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Policy Bottlenecks Threaten Nigeria’s Clean Mobility Drive, LCCI Warns

Published

10 hours ago

August 1, 2026

Trends Admin

Policy Bottlenecks Threaten Nigeria’s Clean Mobility Drive, LCCI Warns

The Chairman of the Auto and Allied Sector Group of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Femi Eguahide, has warned that policy inconsistencies, regulatory bottlenecks and weak coordination between the public and private sectors could derail Nigeria’s clean mobility ambitions, urging the Federal Government to deepen collaboration with industry stakeholders to accelerate the transition to Compressed Natural Gas (CNG) and Electric Vehicles (EVs).

Speaking at the 3rd Nigeria Auto Industry Summit in Lagos on Thursday, Eguahide said the success of the Federal Government’s clean mobility agenda would depend on sustained stakeholder collaboration, policy consistency and the removal of operational challenges slowing investment and implementation.

The summit, organised by the Nigeria Auto Journalists Association (NAJA) under the theme, “Nigeria’s Clean Mobility Future: The EV and CNG Journey Under the Bola Tinubu Administration,” brought together policymakers, regulators, automobile manufacturers, financiers, transport operators, researchers, safety agencies and development partners to chart a roadmap for accelerating Nigeria’s transition to cleaner transportation.

Eguahide acknowledged the Federal Government’s commitment to alternative energy solutions through the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), but stressed that translating policy into tangible results would require stronger coordination between government institutions and private investors.

According to him, the automotive industry remains a critical driver of industrialisation, job creation and economic growth, making it imperative for government agencies to work closely with manufacturers, assemblers, financiers and technology providers to create a more predictable and investment-friendly operating environment.

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He said effective policy implementation must be backed by continuous stakeholder engagement capable of resolving challenges surrounding vehicle conversion, local manufacturing, infrastructure development, financing and technology deployment.

Eguahide maintained that Nigeria possesses enormous potential to build a globally competitive clean mobility ecosystem, but cautioned that fragmented policies and institutional inefficiencies could slow the country’s progress if left unresolved.

He therefore urged government agencies to deepen engagement with the organised private sector to develop practical solutions that would accelerate the rollout of CNG refuelling infrastructure, EV charging networks and local automotive production.

Earlier, the Federal Government reaffirmed its commitment to expanding Nigeria’s clean mobility ecosystem through increased investment in infrastructure, local manufacturing and strategic partnerships.

Speaking on behalf of the Executive Chairman and Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), Barrister Ismaeel Ahmed, the Initiative’s Chief Compliance Officer, Engr. Zayyanu Tamberi Yabo, said the programme had evolved into a key pillar of President Bola Tinubu’s transport and energy reform agenda.

According to Ahmed, the Presidential Initiative was established not merely to promote alternative fuels but to build an integrated ecosystem covering infrastructure development, investment, vehicle conversion, local manufacturing, technical capacity building and consumer confidence.

“Our approach from the beginning has been to build the foundations of a sustainable industry rather than pursue isolated interventions,” he said.

He disclosed that certified CNG conversion centres had expanded significantly across the country over the past two years, while new refuelling stations were being developed through public and private sector investments.

Ahmed added that vehicle conversions continue to rise as commercial transport operators and private motorists increasingly embrace CNG because of its lower operating costs.

He also highlighted partnerships with financial institutions, energy companies and automobile manufacturers aimed at improving access to financing and accelerating the adoption of clean mobility technologies.

Despite the progress, he identified infrastructure expansion, consumer financing, local manufacturing capacity, technical training, research, innovation and standardisation as priority areas requiring sustained attention.

In his welcome address, NAJA Chairman Theodore Opara described the summit as a strategic platform for shaping the future of Nigeria’s automotive industry.

He said reforms introduced by the Tinubu administration had created fresh momentum for CNG, electric vehicles and local automotive manufacturing, adding that stronger collaboration among government, industry players and the media would be critical to sustaining the gains.

Also speaking, the Director-General of the Standards Organisation of Nigeria (SON), Dr. Ifeanyi Chukwunonso Okeke, represented by Engr. Olalekan Omoniyi, said strict compliance with internationally recognised standards would determine the success of Nigeria’s transition to EVs and CNG-powered transportation.

He disclosed that SON had developed more than 80 Nigerian Industrial Standards for CNG vehicles and equipment, as well as 87 additional standards and the National Nigeria Guideline (NNG 1214:2024) for CNG vehicle conversions.

The SON boss warned against the proliferation of uncertified conversion centres and substandard equipment, urging mandatory certification for imported and locally assembled EVs, CNG vehicles, conversion kits and charging infrastructure.

Policy Bottlenecks Threaten Nigeria’s Clean Mobility Drive, LCCI Warns

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FRSC Pledges Robust Safety Measures as Nigeria Accelerates EV, CNG Mobility Drive

Published

13 hours ago

August 1, 2026

Trends Admin

FRSC Pledges Robust Safety Measures as Nigeria Accelerates EV, CNG Mobility Drive

The Federal Road Safety Corps (FRSC) has declared that road safety will remain at the heart of Nigeria’s transition to Electric Vehicles (EVs) and Compressed Natural Gas (CNG)-powered transportation, pledging to strengthen regulations, enforcement and stakeholder collaboration to ensure the shift to cleaner mobility does not compromise public safety.

The Corps Marshal of ghe FRSC, Shehu Mohammed, made the declaration while delivering a keynote address at the 3rd Nigeria Auto Industry Summit organised by the Nigeria Auto Journalists Association (NAJA) in Lagos.

The summit, themed “Nigeria’s Clean Mobility Future: The EV and CNG Journey Under the Bola Tinubu Administration,” brought together government officials, regulators, manufacturers, energy companies and other industry stakeholders to chart the future of sustainable transportation in Nigeria.

Mohammed said the growing adoption of EVs and CNG-powered vehicles presents significant opportunities for cleaner transportation, lower operating costs and improved energy security, but warned that these benefits can only be fully realised through robust safety regulations, effective enforcement and continuous collaboration among stakeholders.

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He noted that as alternative-fuel vehicles become more prevalent on Nigerian roads, regulatory institutions must evolve to address emerging technologies through specialised training, updated operational guidelines and stronger enforcement frameworks.

According to him, the FRSC has already begun positioning itself for the transition by strengthening safety regulations, engaging key stakeholders and developing operational frameworks specifically designed for EVs and CNG-powered vehicles.

The Corps Marshal stressed that Nigeria’s clean mobility agenda should not only focus on reducing carbon emissions but also on improving road safety, raising vehicle standards and building public confidence in emerging transport technologies.

He added that achieving a safe and sustainable transition would require the active participation of road users, transport operators, vehicle manufacturers, conversion centres, regulators and other critical stakeholders.

Mohammed reaffirmed the FRSC‘s commitment to working closely with government agencies, industry players and development partners to ensure that Nigeria’s journey towards cleaner transportation delivers lasting safety, environmental and economic benefits for the country.

FRSC Pledges Robust Safety Measures as Nigeria Accelerates EV, CNG Mobility Drive

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Pi-CNG boss: Clean mobility will cut transport cost, create jobs, power Nigeria’s economic growth

Published

1 day ago

July 31, 2026

Trends Admin

L-R: Representative of the Controller-General of Federal Fire Service, Badmus Abdulsamad; representative of the Director-General of the Standards Organisation of Nigeria, Engr. Olalekan Omoniyi; Director, Public Relations, National Automotive Design and Development Council (NADDC), Mrs. Suzan Taiwo; Corps Marshal of the Federal Road Safety Corps (FRSC), Mr. Shehu Mohammed; National Chairman of the Nigeria Auto Journalists Association (NAJA), Mr. Theodore Opara; Head of Regulatory Compliance, Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG), Engr. Zayannu Yabo; Deputy Managing Director, CFAO Mobility, Mr. Kunle Jaiyesimi; Chairman, Auto Sectoral Group of the Lagos Chamber of Commerce and Industry, Dr. Femi Eguaikhide and MD, TSS, Mr. Frank Nneji; at the 3rd Nigeria Auto Industry Summit held at Radisson Hotel, Ikeja, Lagos...on Thursday July 30, 2026.

Pi-CNG boss: Clean mobility will cut transport cost, create jobs, power Nigeria’s economic growth

The Federal Government has declared that Nigeria’s transition to compressed natural gas (CNG) and electric vehicles (EVs) is no longer an environmental ambition but a critical economic strategy to slash transportation costs, strengthen energy security, create jobs and unlock new investments across the automotive value chain.

Making the declaration at the 3rd Nigeria Auto Industry Summit (NAISU) organised by the Nigeria Auto Journalists Association (NAJA) in Lagos, the Executive Chairman and Chief Executive Officer of the Presidential Initiative on Compressed Natural Gas and Electric Vehicles (Pi-CNG & EV), Barrister Ismaeel Ahmed, said clean mobility had become a central pillar of President Bola Ahmed Tinubu’s transport and energy reforms.

Delivering a keynote address titled, “Nigeria’s Clean Mobility Future: The EV and CNG Journey Under the Bola Tinubu Administration,” Ahmed said the Presidential Initiative was established to coordinate Nigeria’s transition to cleaner transportation by building a sustainable ecosystem for CNG and electric mobility.

He explained that the Initiative’s mandate extended beyond promoting alternative fuels to attracting investments, expanding refuelling and charging infrastructure, supporting vehicle conversion, strengthening local manufacturing, developing technical skills and boosting consumer confidence.

According to him, the programme was conceived following the removal of fuel subsidy to provide Nigerians with a practical and affordable transport alternative by leveraging the country’s abundant natural gas resources.

“Our focus from the beginning has been to build the foundation of a sustainable industry rather than pursue isolated interventions,” Ahmed said, noting that Pi-CNG & EV has worked closely with regulators, investors, vehicle manufacturers, conversion firms, financial institutions, development partners, transport unions and state governments.

Reviewing the Initiative’s achievements over the past two years, he said Nigeria’s CNG ecosystem has expanded rapidly, with more certified conversion centres established across the country and refuelling infrastructure growing through public and private sector investments.

He added that vehicle conversions have continued to rise as commercial transport operators and private motorists increasingly embrace the lower operating costs of CNG, while thousands of technicians have been trained to ensure safe and professional conversion services nationwide.

Ahmed also disclosed that strategic partnerships with financial institutions, energy companies, vehicle manufacturers and state governments are helping to improve access to financing, stimulate infrastructure development and accelerate the adoption of clean mobility solutions.

To strengthen safety and regulatory compliance, he announced the introduction of the Nigeria Gas Vehicle Monitoring System, which he said would enhance transparency, improve regulatory oversight and build public confidence in the conversion industry.

While acknowledging the remarkable progress recorded in CNG adoption, Ahmed stressed that the Initiative remains equally committed to advancing electric mobility, saying Nigeria’s long-term transport future would be powered by multiple clean-energy technologies.

He revealed that government is engaging manufacturers, investors and development partners on electric vehicle deployment, charging infrastructure, local assembly and policy reforms aimed at accelerating market growth.

Despite the progress, Ahmed identified infrastructure expansion, consumer financing, local manufacturing, technical capacity development, research, innovation and standardisation as key areas requiring sustained investment and collaboration.

He urged government agencies, investors, manufacturers, transport operators, financial institutions, development partners and the media to work together to overcome these challenges and build a sustainable clean mobility ecosystem.

Describing the media as a strategic partner, Ahmed called on members of the Nigeria Auto Journalists Association to intensify public education on the economic, environmental and technological benefits of clean mobility.

“The transition to clean mobility is as much an information challenge as it is an infrastructure challenge. Public understanding influences public acceptance, while market confidence is built on accurate, timely and responsible information,” he said.

He pledged deeper engagement with journalists through regular technical briefings, industry dialogues and improved access to credible data to combat misinformation and promote informed public discourse.

Ahmed said Pi-CNG & EV would continue expanding CNG infrastructure nationwide, strengthen the regulatory framework, support local manufacturing and vehicle conversion capacity, deepen financing partnerships and collaborate with stakeholders to build a commercially viable clean mobility industry.

According to him, the true measure of the Initiative’s success will not be the number of conversion centres or refuelling stations established, but its ability to reduce transport costs, improve energy security, generate employment, stimulate industrial growth and improve the quality of life of Nigerians.

He commended NAJA for providing a platform for robust industry dialogue, saying stronger collaboration among government, industry players and the media would be essential to accelerating Nigeria’s clean mobility transition.