Business
Port Operators Decry High Customs Duty, Forex Regime
Port operations in the
country have been hit by hike in import duties of vehicles and rice as well as the introduction of a fish quota system by the administration of former President Goodluck Jonathan. Seaport operators stated this in a statement on Sunday in Lagos and decried the effects of prolonged low activities at the ports.
According to the operators, the ports have also suffered from the restriction of 41 items from accessing the official foreign exchange window by the Central Bank of Nigeria (CBN).
The National President, National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Mr. Lucky Amiwero decried the current hike in import duty on vehicles in 2014/2015 from 10 per cent to 35 per cent with an additional surcharge of 35 per cent. He said the policy had brought the total tariff to 70 per cent, adding that this had negatively impacted on operations at the ports.
Amiwero said this had also led to massive revenue and job loss. He said the arbitrary import duty hike led to the diversion of vessels carrying vehicles to the ports of neighbouring West African country, thereby boosting operations in those ports, especially the Port of Cotonou, at the expense of Nigerian ports.
“The development has also negatively affected the operations of dockworkers, licensed Customs agents, freight forwarders, truckers and others,” he said. According to him, the reduction of activities by 70 per cent in the operation of terminal operators who pay the Federal Government based on cargo, through earnings and shipping companies, has drastically affected their activities. The Customs agent said that presently, Nigerian ports had lost about 80 per cent of their vehicle cargoes; as a result of this hike, which has done more harm than good to the economy. “It (hike) has promoted smuggling and led to huge loss of government and private sector revenue to the advantage of the ports of neighbouring countries.
“It is estimated that no fewer than 5,000 jobs and about N30 billion is lost annually to the policy,’’ our correspondent quotes Amiwero as saying. Signals that Nigeria was on a journey to recession came early this year when the National Bureau of Statistics (NBS) announced that the country recorded a decline of N793.5 billion in the 2016 first quarter merchandise trade to close at N2.72trillion from N3.51trillion in the fourth quarter of 2015, the first time in the last seven years.
The bureau attributed the decline in the first quarter activity to a sharp drop in both He said that until government revisits the policies, the trend would continue and the impact on the ports would become progressively worse.
Edun made the call while speaking at the 2025 Fellowship Investiture of the Chartered Institute of Bankers of Nigeria (CIBN) in Lagos, where he reaffirmed the federal government’s commitment to sustaining ongoing reforms and expanding access to finance as key drivers of economic growth beyond four per cent.
“We all know that monetary policy under Cardoso has stabilised the financial system in a most commendable way. Of course, it is a team effort, and those eye-watering interest rates have to be paid by the fiscal side. But the fight against inflation is one we all have to participate in,” he said.
The minister stressed the need for banks to broaden credit access and finance innovation-driven enterprises that can create jobs for young Nigerians.
“The finance and banking industry has more work to do because we must finance their ideas, deepen the capital and credit markets down to SMEs. They should not have to go to Silicon Valley,” he said.
The minister who described the private sector as the engine of growth, said the government’s reform agenda aims to create an enabling environment where businesses can thrive, access funding, and contribute meaningfully to job creation.
The facility, known as the Nigeria Actions for Investment and Jobs Acceleration (P512892), is a Development Policy Financing (DPF) operation scheduled for World Bank Board consideration on December 16, 2025.
According to the Bank’s concept note , the financing would comprise $500m in International Development Association (IDA) credit and $500m in International Bank for Reconstruction and Development (IBRD) loan.
If approved, it would be the second-largest single loan Nigeria has received from the World Bank under President Bola Tinubu’s administration, following the $1.5 billion facility granted in June 2024 under the Reforms for Economic Stabilisation to Enable Transformation (RESET) initiative.
The World Bank said the new programme aims to support Nigeria’s shift from short-term macroeconomic stabilisation to sustainable, private sector–led growth.
“The proposed Development Policy Financing (DPF) supports Nigeria’s pivot from stabilization to inclusive growth and job creation. Structured as a two-tranche standalone operation of US$1.0 billion (US$500 million IDA credit and US$500 million IBRD loan), it seeks to catalyse private sector–led investment by expanding access to credit, deepening capital markets and digital services, easing inflationary pressures, and promoting export diversification,” the document read.
The document further stated that Nigeria’s private sector credit-to-GDP ratio stood at only 21.3 per cent in 2024, significantly below that of emerging-market peers, while capital markets remain shallow, with sovereign securities dominating the bond market.
To address these weaknesses, the DPF will support the implementation of the Investment and Securities Act 2025, operationalisation of credit-enhancement facilities, and introduction of a comprehensive Central Bank of Nigeria rulebook to strengthen risk-based regulation and consumer protection.
The operation also includes measures to deepen digital inclusion through the passage of the National Digital Economy and E-Governance Bill 2025, which will establish a legal framework for electronic transactions, authentication services, and digital records.
Beyond the financial and digital sectors, the programme targets reforms to lower production and living costs by tackling Nigeria’s restrictive trade regime. High tariffs and import bans have long driven up consumer prices and constrained competitiveness, particularly for manufacturers and farmers.
Under the proposed reforms, Nigeria would adopt AfCFTA tariff concessions, rationalise import restrictions, and simplify agricultural seed certification to increase the supply of high-quality varieties for maize, rice, and soybeans. The World Bank projects that these measures will help reduce food inflation, attract private investment, and enhance export potential.
The operation is part of a broader World Bank FY26 package that includes three complementary projects—Fostering Inclusive Finance for MSMEs (FINCLUDE), Building Resilient Digital Infrastructure for Growth (BRIDGE), and Nigeria Sustainable Agricultural Value-Chains for Growth (AGROW)—all focused on expanding access to finance, strengthening institutions, and mobilising private capital.