Market News

By Adaku Onyenucheya

Customs brokers and clearing agents have raised the alarm over what they called exploitative charges levied on a 20ft container by cargo consolidators.

The customs brokers and clearing agents petitioned the Nigerian Shippers’ Council (NSC) and the Ministry of Marine and Blue Economy to address the arbitrary and exploitative charges by the consolidators, which are said to be over N3.5 million.

Cargo consolidators, also known as groupage operators, combine goods from multiple shippers into a single container for cost-effective shipping.

However, stakeholders argue that some operators have hijacked essential services, imposing excessive fees on importers and clearing agents.

The former acting president of the Association of Nigerian Licensed Customs Agents (ANLCA), Dr Kayode Farinto, decried the lack of regulation in the sector, citing examples of exorbitant charges as a major problem.

Farinto detailed his experience with the Associated Port and Marine Development Company (APMDC), using a consignment of an elevator meant for a church project as a case study.

He said the elevator, occupying 10.6 cubic meters (CBM) in a 20-foot container, was charged N270,172 per cubic meter (CBM) for consolidation, alongside additional documentation and value-added tax (VAT) fees.

He said the company further issued a separate debit note of N438,223 for terminal-related fees, bringing the total consolidation charges for the consignment to over N3.5 million.

“These charges are outrageous. For a 20-foot container, even in a standard terminal, you cannot pay more than N1 million for all charges, including terminal fees and shipping costs,” Farinto stated.

Farinto also cited a similar case involving Sharafa Shipping, where the company charged N165,220 per CBM for a consolidated consignment, along with separate terminal charges.

He also criticised the lack of transparency in determining charges, urging the NSC to enforce a standard operating procedure for cargo consolidators.

“Where do these consolidators get their charges from? Who regulates them? The Nigerian Shippers’ Council is aware of these exploitative practices, yet no concrete action has been taken,” he added.

Farinto warned that the unchecked consolidators’ activities are inflating import costs, which are eventually passed on to consumers, exacerbating the cost of living in Nigeria.

He emphasised that such practices could undermine the country’s participation in the African Continental Free Trade Agreement (AfCFTA), which aims to promote seamless trade across the continent.

He called for sanctions against consolidators for alleged exploitative practices and inadequate client communication during a recent terminal closure.

“The government must act now to protect importers and ensure that cargo consolidation serves its intended purpose of reducing costs rather than becoming a tool for exploitation,” Farinto concluded.

The National President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, echoed these concerns, highlighting the duplicative charges levied by consolidators and the NSC’s lack of oversight.

Amiwero called for a comprehensive review of Nigeria’s ports and the establishment of a regulatory framework to oversee the activities of cargo consolidators.

“What they are doing is exploitation. A lot of things are illegal in the ports and everything must be reviewed. Nigerian ports are among the most expensive in the world, and nobody cares,” he lamented.

He urged the Ministry of Marine and Blue Economy to intervene and establish stricter regulations for cargo consolidators.

Amiwero also argued that without decisive action, the nation’s ports would remain plagued by inefficiencies and high costs, undermining Nigeria’s economic competitiveness.