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Benin edges Nigeria to emerge West Africa’s key trade hub - THE GUARDIAN

SEPTEMBER 11, 2024

Benin Republic has emerged West Africa’s key trade hub, jumping to 66th place on the World Bank’s Logistics Performance Index, an astonishing leap of approximately 100 places in just under a decade. In comparison, Nigeria slid to 88th position on the ranking, dropping by 10 positions.

Benin Republic has emerged West Africa’s key trade hub, jumping to 66th place on the World Bank’s Logistics Performance Index, an astonishing leap of approximately 100 places in just under a decade. In comparison, Nigeria slid to 88th position on the ranking, dropping by 10 positions.

According to data sourced from the LPI, Cotonou handles an average of 80 to 90 merchant vessels monthly. According to the African Development Bank (AfDB), Cotonou deals with 90 per cent of the country’s international trade, serving up to 100 million consumers.

In 2022, the port handled 12.5 million tonnes of goods, a figure that is predicted to almost double by 2038, reaching 23 million tonnes. In comparison, trade in Nigeria’s ports have witnessed average growth, recording 2.8 million tonnes of export in 2019; 3.8 million tonnes in 2020; 3.79 million in 2021; 5.1 million in 2022 and 3.5 million in the first half of 2023.

Recently, the AfDB gave the Cotonou port, an €80 million loan for significant infrastructure upgrades to expand its operations even more.

Despite Nigeria’s favourable position and vast availability of waters for trading and other commercial activities, the nation’s ports continued to record a low number of export trade at its ports, mostly due to inefficiencies, high shipping costs, poor logistical facilities among others, preventing it from becoming a key trade route in the region.

Stakeholders in the real sector have continually called for urgent port reforms, saying that inefficiencies and other illegal activities at the nation’s ports negatively affect trade and prevent the country from maximising the benefits of the African Continental Free Trade Area (AfCFTA).

The Director-General, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Sola Obadimu, said it is no surprise the country’s ports ranking is poor.

He said inefficiencies at the ports added up to 50 per cent to the cost of goods, worsening the inflation currently being experienced in the country.

He said number of times in the past, NACCIMA had drawn the attention of concerned authorities to the difficulties real sector players are passing through, especially trying to export or clear imported goods. He said cleaning up the ports would benefit everyone, especially the government.

He added that improving port infrastructure and reducing bottlenecks in cargo clearance would lower transaction costs and help businesses become more resilient.

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