Nigeria could be facing annual losses of about ₦130 billion in customs duties, value-added tax on imports, and other levies due to a decline in port activity linked to its diminishing role as West Africa’s logistics hub.
According to a statement from the Sea Empowerment and Research Centre (SEREC), signed by its Head of Research, Eugene Nweke, cited in Punch’s report, the drop in activity could slash government revenue by 10 to 20 percent—equivalent to between ₦300 billion and ₦600 billion—affecting funds for infrastructure and essential public services.
Nweke further warned that the country risks losing billions of naira in foreign investment as businesses shift to more efficient ports in neighbouring nations.
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He estimated that a 20 percent fall in foreign investment in Nigeria’s logistics sector could result in potential losses of ₦500 billion to ₦1 trillion. Combining lost investments with reduced revenue, the total economic impact could reach ₦800 billion to ₦1.6 trillion annually.
Describing the situation as a “wake-up call” for policymakers and industry players, Nweke—also a former National President of the National Association of Government Approved Freight Forwarders—outlined several measures to reverse the trend.
These include adopting digital solutions such as single-window trade platforms to cut costs and boost efficiency, developing a national logistics policy underpinned by infrastructure reforms, and investing in rail-port connectivity, secure dry ports, and special logistics zones.
He stressed the need to tackle congestion and delays at Apapa and Tin Can Island ports, adding that full port digitalisation could improve Nigeria’s logistics competitiveness, stimulate economic activity, and strengthen its regional trade position.
Image Credit: Puch newspapper
