Exporters Bleed Naira Before Shipments Leave Nigerian Ports

Lagos based exporter Mr. Iyiola thought he had sealed the hardest part of his deal when he found a buyer for a container of dried hibiscus bound for the United Kingdom. The goods were sourced, packaged and ready to go. But before the container could enter the port, the bills started piling up.

First came the cost of processing export documents and obtaining certificates. Then transport costs rose as the container crawled through congested roads to Lagos ports. Freight forwarding charges followed. So did terminal handling fees, inspections, container stuffing costs and multiple regulatory approvals. By the time the shipment was ready for the vessel, Mr. Iyiola had spent hundreds of thousands of naira. Not a single dollar had gone to international freight.

His story is the story of thousands of Nigerian exporters. Moving goods out of the country starts costing money long before cargo reaches the port. Nigeria’s non oil exports have grown sharply in recent years. But exporters keep battling rising logistics expenses, layers of paperwork and operational bottlenecks that push up the final cost of every shipment.

What Exporters Are Saying

Frank Ogunojemite, President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), said exporters are hit by bottlenecks across port access, documentation, storage charges and logistics delays. These inefficiencies, he said, keep weakening Nigeria’s non oil export competitiveness despite efforts to improve trade.

Okechukwu Anthony Onyebuchi, Operations and Documentation Manager at Fortune Global Shipping, said export documentation is now centrally processed through the Lilypond Export Command in Lagos. Approvals are issued there before cargo can enter ports like Apapa, Tin Can Island, PTML and Lekki. Exporters still need approvals from multiple government agencies and must undergo inspections before containers are cleared. Customs and other regulators are present during container stuffing and verification.

Export consultant Bamidele Ayemibo of 3T Impex Trade Center said exporters incur costs at every stage of the chain: documentation, freight forwarding, port handling and international freight. He noted that freight charges for a 20 foot container to the UK and European Union range between 1,000 and 2,000 euros. That is only ocean freight, not the full cost.

Breaking Down the Cost of Shipping a Container

Exporting a container through Apapa in 2026 is not a single flat fee. It is a pile of charges spread across documentation, logistics, port processes and international freight. Every stage adds a separate cost.

Documentation and regulatory compliance come first. Exporters must process the Nigeria Export Proceed (NXP) form, register with the Nigerian Export Promotion Council (NEPC) and get extra permits depending on the goods. The NXP fee is about 8,000 naira per transaction. Other certifications vary by product.

Then come inland logistics costs. Goods are moved from warehouses, farms or factories to export terminals. Fuel prices, road conditions, traffic and delays on corridors leading to Lagos ports drive these costs. Freight forwarding services run between 200,000 and 250,000 naira per container.

At the port, terminal handling charges are estimated at 100,000 to 120,000 naira per container. Container stuffing costs 130,000 to 150,000 naira. Inspection and certification fees add another 100,000 to 150,000 naira. Other documents like certificate of origin, fumigation and phytosanitary certificates cost 25,000 to 40,000 naira. Agricultural goods need fumigation and phytosanitary certificates. Processed food, pharmaceuticals and solid minerals require NAFDAC and mineral related certificates.

International freight is one of the biggest costs. Shipments to the UK and EU cost 1,000 to 2,000 euros per 20 foot container. Exporters also pay the Nigeria Export Supervision Scheme (NESS) fee at 0.5 percent of FOB value.

Small and medium sized exporters feel the pressure most. Rising inland transport, port handling and energy costs are hitting them hard. Ayemibo said electricity and processing costs remain a major challenge.

Structural Problems Add to the Pain

Beyond costs, structural inefficiencies in the port system add pressure. Ogunojemite said multiple bottlenecks across port access, documentation processes and agency checks make export operations more expensive and less efficient. Delays and handling charges pile up across the chain.

Freight forwarding operators note that centralised documentation through Lilypond and multiple agency inspections add layers of delay.

What Should Be Done

Industry stakeholders want reforms to cut the cost burden on exporters and make the export logistics system more efficient.

Ogunojemite called for full digitalisation of export processes across all agencies. Harmonised documentation and automation would reduce delays and limit human interference. He also pushed for fewer overlapping port charges and stronger enforcement against extortion and unofficial payments along export corridors. Dedicated export terminals and better port infrastructure, including improved road access, would ease congestion. He recommended a single joint inspection system for government agencies to eliminate repeated checks and cut clearance delays.

Ayemibo called for better logistics support structures, especially for small and medium businesses. He stressed the need for stronger access to export financing and logistics linked support systems. Improving efficiency across the export chain is critical to sustaining growth in Nigeria’s non oil export sector, he said.

What You Should Know

Nigeria’s non oil exports hit 12.36 trillion naira between January and December 2025, according to the National Bureau of Statistics. That is a sharp jump from 9.09 trillion naira in 2024. Non oil exports stood at 3.14 trillion naira in 2022, dropped to 2.56 trillion naira in 2023, then rebounded to 9.09 trillion naira in 2024 before climbing further in 2025.

Mineral products led export earnings at 73.46 trillion naira. Prepared foodstuffs, beverages, spirits, vinegar and tobacco followed at 3.88 trillion naira. Chemical and allied industries contributed 3.37 trillion naira. Vegetable products earned 1.54 trillion naira. Other categories included vehicles and aircraft parts at 1.10 trillion naira, base metals at 646.16 billion naira, plastics and rubber at 244.17 billion naira, and machinery at 207.48 billion naira.

Despite this growth, rising logistics and operational costs continue to weigh on exporters, especially in the non oil segment where competitiveness depends on cost efficiency.