Business A.M
No Result
View All Result
Saturday, October 17, 2026
  • Login
  • Technology
  • Finance
  • Comments
  • Companies
  • Commodities
  • ONLINE & DIGITAL CONTENT PACKAGE
Subscribe
Business A.M
  • Technology
  • Finance
  • Comments
  • Companies
  • Commodities
  • ONLINE & DIGITAL CONTENT PACKAGE
No Result
View All Result
Business A.M
No Result
View All Result
Home Maritime

Nigerian importers to lose N33.6bn on SON’s return to seaports

by Admin
July 29, 2025
in Maritime

By Samson Echenim

 

Importers in Nigeria face no less than N33.6 billion loss in port storage charge if the Standards Organisation of Nigeria (SON) or any more agency of the federal government is allowed to return to seaports in the country.

Findings by business a.m revealed that with one or two more agencies having permanent presence at the ports, cargo dwell time will increase by no less than two days.

With average port storage cost per TEU at N12,000 according to Safmarine, computations by business a.m showed that two more days delay on Nigeria’s average 1.4 million containers importations per year would amount to N33.6 billion. This is the amount that importers would part with to terminal operators annually for having their containers delayed for additional two days as they wait for SON inspection. According to CEIC data, Nigeria’s container importations averaged 1,400,000 TEU from December 2008 to 2018.

SON recently, activated deliberate action plans which involved lobbying of the House of Representatives and some associations of Customs brokers and freight forwarders to return to the seaport. It claimed that not maintaining a permanent presence at the ports was hampering its ability to monitor and check influx of imported sub standard products into the country.

SON is one of the eight agencies of the federal government of Nigeria sacked from the seaports by the then minister of finance and coordinating minister of the economy in August 2011, following complaints of multiple charges, red tapism and delay in cargo delivery processes at the country’s seaports.

The affected agencies, which also includes NAFDAC and NDLEA were directed to leave the port environment and to only come into the port on invitation by the Nigeria Customs Service to inspect suspected importations. The step was necessary to eliminate delay in the import clearing process and reduce cargo dwell time, the government had said.

We don’t want more agencies at the port —NPA, port owners

Meanwhile, responses from both the Nigerian Ports Authority (NPA), ports landlord and port terminal operators indicate that more agencies of government having permanent presence at the port would further geopardise the situation at the ports, especially ports in Lagos which are currently experiencing congestion.

The NPA told business a.m that a return of the Standards Organisation of Nigeria (SON) or any other government agency would cause longer delay and elongate cargo dwell time currently at 21 days. This, the port landlord noted, would hinder the ease of doing business initiative of the Nigerian government at the ports.

However, while submitting that it does not have the powers to determine which agencies of government should have a permanent base at the seaports, the NPA said moves by some government agencies to return to the port was not necessary as the Customs always invite relevant agencies to inspect importations suspected to have shortcomings.

“We have no control over which agencies of government should be at the ports, because it is the prerogative of the federal government. When we had lots of issues with delay of cargo at the ports in 2011, we wrote to the federal government to do what it could to ensure that the delay was eliminated. The minister came and slashed the number of the agencies to be at the port and directed some agencies to leave the port. So, having the agencies back at the ports will be counter productive. It will definitely hinder the ease of doing business policy of the federal government, “ said Adams Jatto, general manager, Corporate and Strategic Communications, NPA.

He noted that lobbying the House of Representatives by agencies to help them return to the port would not work, clarifying that only the federal government has the prerogative to return any agency to the seaports.

“I read in some papers that the House of Representatives are saying they will return the agencies to the ports. Not even the lawmakers can return the organisation to the port. It is only the federal government that can do that, but again, I am afraid that bringing the SON or any more agency of government back to the ports will impede the ease of doing business initiative that we have in the port,” Jatto noted.

Agents, freight forwarders double standards

Curiously, Nigeria’s largest associations of freight forwarders and customs agents, the National Association of Government Approved Freight Forwarders (NAGAFF) and the Association of Nigerian Licensed Customs Agents (ANLCA) are supporting SON’s quest to return to the seaports, despite the fact that outcry by members of the two associations led to the pruning of government agencies at the ports in 2011.

Boniface Aniebonam, founder of NAGAFF said, “We are calling on the Federal Government to ensure that SON returns to the port; as we are aware of the harm substandard goods cause to the economy and safety of the people. Our stand is that SON should be dominant in the port, while other agencies like NAFDAC should be called upon whenever their services are needed.”

Stanley Ezenga, the association’s spokesman said, “The position of NAGAFF is that Standard Organisation of Nigeria, being the agency saddled with the responsibility of ensuring standardisation of goods in Nigeria market through SONCAP and MANCAP, should not be far from entry point of these products. Nigerians have complained about the influx of fake and substandard products into the market of which SON have always posited that their not domiciled inside the port as their reason for this situation. Even though they have been integrated into NICIS 11 platform, from where they have overview of all import declaration and indicate interest in any that fall under their purview. It is in our opinion that they should be given an enabling environment to perform their statutory duties effectively, so we can judge their performance afterwards.”

Admin
Admin
Previous Post

COVID-19: Sanwo-Olu orders eateries to only serve food in takeaway packages

Next Post

We’ve lost over N180bn to coronavirus, Nigerian travel agencies cry out

Next Post

We’ve lost over N180bn to coronavirus, Nigerian travel agencies cry out

  • Trending
  • Comments
  • Latest

How UNESCO got it wrong in Africa

May 30, 2017

CBN to issue N1.5bn loan for youth led agric expansion in Plateau

July 29, 2025
MMA2 enters new commercial era after 20-year concession dispute

MMA2 enters new commercial era after 20-year concession dispute

August 28, 2026
NGX taps tech advancements to drive N4.63tr capital growth in H1

Insurance-fuelled rally pushes NGX to record high

August 8, 2025

6 MLB teams that could use upgrades at the trade deadline

Top NFL Draft picks react to their Madden NFL 16 ratings

Paul Pierce said there was ‘no way’ he could play for Lakers

Arian Foster agrees to buy books for a fan after he asked on Twitter

Rivers, China's CNCECC sign deal for $3.5bn methanol, fertiliser plant

Rivers, China’s CNCECC sign deal for $3.5bn methanol, fertiliser plant

October 17, 2026
Methane rules spread across 67% of global production as Nigeria faces compliance test 

Methane rules spread across 67% of global production as Nigeria faces compliance test 

October 17, 2026
Onafriq, a pan-African payments company, is set to discontinue its Baxi agent banking business in Nigeria after five years, citing naira depreciation, rising operating costs and intensifying competition that have weakened the segment’s profitability. The planned shutdown will affect the agent banking operations conducted through Baxi under Onafriq Nigeria Payments Limited. However, the decision does not signal the company’s withdrawal from Nigeria, as it intends to retain its cross-border payments network and card issuing services in the country. In a statement, Onafriq said changes in Nigeria’s operating environment since 2024 had significantly altered the economics of its offline agent banking business, making the existing model unsustainable. The move marks a strategic shift for the company, which entered Nigeria’s agent banking market to expand access to financial services through a network of agents providing transaction services outside traditional bank branches. Onafriq attributed the decision to a combination of macroeconomic pressures and structural changes in the country’s payments industry. According to the company, naira depreciation and inflation have affected transaction volumes, increased operating expenses and undermined the sustainability of its agent banking operations. The growing adoption of instant account-to-account transfers has also changed the mix of transactions handled by agents, while heightened competition among payment service providers has put further pressure on margins. These developments have made it increasingly difficult for the business to remain viable under its existing operating structure, prompting the company to reassess its long-term strategy. Dare Okoudjou, founder and chief executive officer of Onafriq, said the decision to close the business was difficult, particularly given the efforts of employees, agents and business partners who helped build the Baxi network. “We entered Nigeria with conviction and commitment, but did not achieve the outcome we set out for. Closing this business was a difficult decision to arrive at, one that affects colleagues, agents, and business partners across Nigeria who poured their hearts and soul into building out the Baxi network,” Okoudjou said. Despite the closure, he reaffirmed the company’s commitment to the Nigerian market, noting that the group would continue to serve customers through its payments network and card issuing operations. Onafriq entered Nigeria’s agent banking market in 2021 through the acquisition of Baxi, also known as Capricorn Digital Limited. The company said it continued investing in the business through 2023, with efforts focused on expanding and strengthening its agent network. However, a subsequent review of the business’s long-term prospects and financial sustainability led to the decision to wind down the operation. As part of the transition, Onafriq said agents onboarded through the Baxi platform had been moved to another principal bank, a step intended to facilitate continuity for the affected agents. The company has also directed agents to transfer their funds to their preferred principal bank within 30 days, adding that its teams would provide support throughout the transition process. Employees whose roles are linked to the agent banking business will also be consulted and supported during the wind-down, with Onafriq pledging to treat affected workers fairly.

Onafriq winds down Baxi as Nigeria’s agent banking economics worsen

October 17, 2026
LCFE links petroleum trading to capital market in pricing transparency drive

LCFE links petroleum trading to capital market in pricing transparency drive

October 17, 2026

Popular News

  • How UNESCO got it wrong in Africa

    0 shares
    Share 0 Tweet 0
  • CBN to issue N1.5bn loan for youth led agric expansion in Plateau

    0 shares
    Share 0 Tweet 0
  • MMA2 enters new commercial era after 20-year concession dispute

    0 shares
    Share 0 Tweet 0
  • Insurance-fuelled rally pushes NGX to record high

    0 shares
    Share 0 Tweet 0
  • Glo, Dangote, Airtel, 7 others prequalified to bid for 9Mobile acquisition

    0 shares
    Share 0 Tweet 0
Currently Playing

CNN on Nigeria Aviation

CNN on Nigeria Aviation

Business AM TV

Edeme Kelikume Interview With Business AM TV

Business AM TV

Business A M 2021 Mutual Funds Outlook And Award Promo Video

Business AM TV

Recent News

Rivers, China's CNCECC sign deal for $3.5bn methanol, fertiliser plant

Rivers, China’s CNCECC sign deal for $3.5bn methanol, fertiliser plant

October 17, 2026
Methane rules spread across 67% of global production as Nigeria faces compliance test 

Methane rules spread across 67% of global production as Nigeria faces compliance test 

October 17, 2026

Categories

  • Frontpage
  • Analyst Insight
  • Business AM TV
  • Comments
  • Commodities
  • Finance
  • Markets
  • Technology
  • The Business Traveller & Hospitality
  • World Business & Economy

Site Navigation

  • Home
  • About Us
  • Contact Us
  • Privacy & Policy
Business A.M

BusinessAMLive (businessamlive.com) is a leading online business news and information platform focused on providing timely, insightful and comprehensive coverage of economic, financial, and business developments in Nigeria, Africa and around the world.

© 2026 Business A.M

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Technology
  • Finance
  • Comments
  • Companies
  • Commodities
  • ONLINE & DIGITAL CONTENT PACKAGE

© 2026 Business A.M