Nigeria’s $200b revenue target from non-oil exports elusive amid high shipping cost, logistic hurdle

Logistics challenges, policy inconsistency and rising production costs have plummeted the fortunes of Agrobusiness in Nigeria, but the high cost of shipping at the Nigerian ports worsened by the recent 15 per cent increase in tariff by the Nigerian Ports Authority (NPA). Stakeholders in the sector say the high cost suffocates export trade, deepens losses for smallholder farmers and renders Nigerian produce even less competitive in the global market. MOYOSORE SALAMI writes.

Nigeria’s agricultural sector is considered a key driver for economic diversification. Little wonder, efforts have been channelled at growing non-oil exports and thereby, boosting foreign exchange earnings. However, policy somersault and bottlenecks in the country’s maritime sector have undermined its potential and overall contribution to national development.

It has been a worrisome phenomenon that the prices of some locally produced agro products are far higher than their foreign counterparts, but several factors such as policy summersaults, poor infrastructure, rising inflation, foreign exchange and indeed high cost of shipping at the seaports among others, are making the products uncompetitive. Facts revealed that the cost of exporting a container from Nigeria is about $1,500 which is twice the $600 charged in the neighbouring country- Ghana.

As if the charges were not high enough, the NPA has recently introduced a 15 per cent increment in terminal charges and service rates by port service providers across the country effective May 1, 2025.

The Guardian gathered that this hike has been described as a major blow to agricultural exporters already navigating a hostile business terrain. The Federal Government has set a target of increasing its non-oil revenues to as much as $200 billion in the next five years to meet its foreign exchange demands, but stakeholders believed that this ambition might remain a tall order, after all, if urgent actions are not taken to tackle the inherent chal
lenges.
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https://guardian.ng/news/nigeria/nigerias-200b-revenue-target-from-non-oil-exports-elusive-amid-high-shipping-cost-logistic-hurdles/