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.

Business

Seplat Picks Elumelu as Chairman, Names Okon New CEO

Published

3 hours ago

June 10, 2026

Trends Admin

Seplat Picks Elumelu as Chairman, Names Okon New CEO

Seplat Energy Plc has announced a major leadership transition that will see businessman and investor Tony Elumelu become chairman of the company from January 1, 2027, while industry veteran Effiong Okon takes over as chief executive officer from August 1, 2026.

The appointments are part of a succession plan approved by the board to ensure continuity and support the company’s next phase of growth.

Current Chairman, Senator Udo Udoma, will retire on December 31, 2026, while Chief Executive Officer Roger Brown will step down on July 31, 2026 after more than a decade with the company.

Confirming Elumelu’s appointment, Seplat said he was elected by the board to succeed Udoma. Elumelu, Founder and Chairman of Heirs Holdings, joined Seplat’s board in January 2026. Heirs Holdings holds a 20.07 per cent stake in the energy company.

Reacting to his appointment, Elumelu said he was honoured by the confidence reposed in him by the board.

“I am honoured to succeed Senator Udoma as chairman in January 2027 and to lead the board through Seplat Energy’s next phase of growth,” he said.

Elumelu stressed the importance of indigenous energy companies in driving economic development across the continent, noting that “the critical role indigenous resources play in the economic transformation of Nigeria and Africa” remains central to his vision for the company.

He also commended the outgoing chairman and chief executive for their stewardship, saying he looked forward to working with the incoming CEO to deliver greater value to shareholders.

The board also appointed Okon as CEO and Executive Director. Okon, who has more than 35 years of industry experience, has held several leadership positions within Seplat since joining the company in 2018. Most recently, he served as Managing Director of the ANOH Gas Processing Company, where he led the project to first gas production in January 2026.

Expressing his readiness for the role, Okon said: “My immediate focus will be on ensuring the company executes the 2030 Roadmap, alongside development of the long-term plan to ensure we deliver on the immense potential inherent in our portfolio.”

Seplat said Brown leaves behind a strong legacy, having helped steer the company through significant expansion, including its dual listing in 2014 and major acquisitions such as Eland Oil & Gas in 2019 and Mobil Producing Nigeria Unlimited in 2024.

Brown described his time at the company as a privilege, saying he was proud to have helped build a business known for financial resilience, strong governance and shareholder value.

Udoma, meanwhile, praised Brown for his outstanding contribution to the growth of Seplat into one of Africa’s leading independent energy companies.

Railway

NRC Confirms Warri–Itakpe Train Accident, Three Passengers Dead

Published

1 day ago

June 9, 2026

Trends Admin

NRC Confirms Warri–Itakpe Train Accident, Three Passengers Dead

Three passengers reportedly died and many others injured on Monday following the derailment of a train operating on the Warri–Itakpe Train Service (WITS), raising fresh concerns about safety and operational challenges on one of Nigeria’s most important standard-gauge railway corridors.

The accident occurred at Agbor, Delta State, along the Warri–Itakpe route, according to the Nigerian Railway Corporation (NRC).

In a statement signed by the Managing Director and Chief Executive Officer of the NRC, Dr. Kayode Opeifa, the corporation disclosed that rescue and emergency operations were ongoing while efforts were being made to determine the full extent of the accident.

“The Nigerian Railway Corporation confirms that an incident involving the Warri–Itakpe Train Service occurred today. Emergency response teams and relevant authorities are currently at the scene attending to the situation and providing necessary assistance,” the statement said.

The NRC said it was closely monitoring developments and promised to provide further details as investigations progress.

Although the corporation did not immediately state the number of casualties or injuries, sources familiar with the incident said three passengers lost their lives in the derailment.

Monday’s accident is the latest setback for the rail corridor, which has experienced a series of operational disruptions in recent years.

In April 2025, the NRC suspended train operations on the Warri–Itakpe route for 72 hours after a major technical failure left hundreds of passengers stranded in a remote forest area in Kogi State for several hours.

The disruption sparked public outrage and renewed scrutiny of the reliability and maintenance of the service.

The corporation attributed the incident to multiple engine failures and subsequently launched investigations while carrying out repairs before resuming operations.

The Warri–Itakpe line has also faced vandalism of railway infrastructure and security concerns along parts of the corridor.

Commissioned as Nigeria’s first standard-gauge rail line dedicated initially to freight movement before passenger services were introduced, the route links Warri in Delta State with Itakpe in Kogi State, serving thousands of passengers and facilitating the movement of goods across several states.

Transportation stakeholders have repeatedly called for stronger safety measures, improved maintenance culture and increased investment in rail infrastructure to prevent recurring incidents and enhance public confidence in the country’s rail transport system.

Auto

Zenith Bank tops awards list as Toyota Nigeria celebrates three decades of excellence (plus photos)

Published

2 days ago

June 7, 2026

Trends Admin

Zenith Bank tops awards list as Toyota Nigeria celebrates three decades of excellence (plus photos)

Zenith Bank Plc has emerged as the biggest winner at the 2026 Toyota Awards and Customers’ Night, clinching the coveted Evergreen Customer of the Year Award for the second consecutive year in recognition of its exceptional patronage of Toyota vehicles over the past five years.

The colourful event, held on Friday, May 5, 2026, at The Podium Event Centre in Lekki, Lagos, brought together an impressive gathering of customers, dealers, government officials, corporate partners, media practitioners and industry stakeholders to celebrate the achievements of Toyota Nigeria Limited (TNL) and strengthen the partnerships that have sustained its leadership in Nigeria’s automotive industry.

The annual awards ceremony serves as a platform to reward loyal customers, honour strategic partners and reinforce the company’s customer-first philosophy.

The highlight of the evening came when representatives of Zenith Bank were invited to the stage to receive the prestigious award for purchasing the highest number of Toyota vehicles from TNL dealerships in 2025.

The banking giant also secured the same honour last year after emerging as the customer with the highest cumulative vehicle purchases between 2020 and 2024.

In recognition of the feat, Chairman and founder of Toyota Nigeria Limited, Chief Michael Ade-Ojo, presented Zenith Bank with the keys to a brand-new Toyota Starlet Cross.

The competition in the Customer of the Year category was equally keen. AGL Motors emerged as the overall winner, while the Nigerian Army and Zenith Bank finished as first and second runners-up respectively. The winners received office equipment worth several millions of naira.

The 2026 edition of the awards carried special significance as Toyota Nigeria celebrated its 30th anniversary, marking three decades of operations since its establishment in 1996.

In keeping with its tradition of recognising contributors across its business ecosystem, Toyota Nigeria also honoured outstanding automotive journalists whose reports and analyses helped shape public understanding of developments in the industry.

Veteran motoring journalist, Theodore Opara of Vanguard, was named Journalist of the Year for his consistent coverage of the automotive sector and insightful reporting on industry trends and Toyota’s innovations.

Mike Ochonma of Transport World emerged as the runner-up, while Rasheed Bisiriyu of Newstrends was recognised as the second runner-up for their contributions to automotive journalism, particularly in the areas of vehicle technology, mobility solutions and market analysis.ĺ

Earlier in his keynote address, Managing Director of TNL, Kunle Ade-Ojo reflected on the company’s journey, describing the milestone as a testament to resilience, innovation and customer loyalty.

“Tonight is a moment of reflection, celebration and renewed commitment,” he said.

“For us at Toyota Nigeria, this annual gathering is more than a tradition. It is a deliberate expression of our enduring philosophy of putting the customer first. It provides a unique platform to honour the loyalty, trust and partnership that have defined our journey over the years.”

According to him, Toyota Nigeria has evolved from modest beginnings into one of the country’s most trusted automotive brands through a relentless focus on quality, reliability and service excellence.

“Since commencing operations in 1996, our journey has been defined by resilience, growth and transformation. Our progress over the past three decades has been anchored on one unwavering principle—creating value for our customers.

“Beyond delivering vehicles that meet diverse mobility needs, we have invested significantly in building a nationwide after-sales ecosystem designed to provide a seamless and premium ownership experience.”

Ade-Ojo assured customers and stakeholders that Toyota Nigeria would continue to innovate and improve its products and services despite prevailing economic challenges.

Several dealers and business partners used the occasion to commend Toyota Nigeria for its continuous investments in dealer development, training initiatives and workshop upgrades aimed at improving service delivery nationwide.

Ade-Ojo expressed gratitude to Toyota Nigeria’s extensive network of stakeholders, including dealers, customers, suppliers, consultants, financial institutions and employees.

“The journey of the past 30 years would not have been possible without the unwavering support and contributions of our stakeholders,” he said.

The managing director also acknowledged the support of Toyota Nigeria’s principal partner, Toyota Motor Corporation, as well as the company’s board of directors led by Chief Ade.Ojo.

He further assured customers that Toyota Nigeria would continue to introduce customer-friendly initiatives designed to make vehicle ownership more accessible despite economic headwinds.

“Despite the monumental challenges in the economy, Toyota Nigeria will continue to devise means that will enable our customers to enjoy their preferred auto brand—Toyota. We will continue to initiate customer-friendly business improvement strategies aimed at making our vehicles more affordable.”