Nigeria's Maritime Sector Scandal: Sharp Practices and Regulatory Failures Threaten Economy

By Lod Onyeji

A new white paper from the Sea Empowerment and Research Center (SEREC) exposes widespread sharp practices by shipping lines and agents in Nigeria's ports, costing the economy an estimated ₦225-₦450 billion annually. The report alleges regulatory capture, weak oversight, and systemic failures, threatening trade facilitation, inflation control, and investor confidence.

*Key Findings:*

- Shipping lines withhold refunds, impose arbitrary charges, and engage in speculative demurrage billing

- Regulatory agencies are perceived as compromised, allowing impunity to thrive

- National Single Window regime is undermined by manual opacity and human discretion

- Legislative oversight is weakened by lack of transparency and accountability

*Economic Impact:*

- Logistics-related charges account for 30-40% of landed import costs

- Operational disruptions cost the economy ₦500-₦700 billion annually

- Sharp practices contribute 0.7-1.2 percentage points to headline inflation

*Recommendations:*

- Public release of legislative committee findings on shipping line investigations

- Statutory refund timelines with interest penalties

- Prohibition of speculative demurrage billing

- Mandatory local cargo release authority

- Alignment of shipping practices with National Single Window regime

The report calls for immediate action to address these issues and promote transparency, accountability, and good governance in Nigeria's maritime sector.