The Shipping Association of Nigeria has expressed deep concern over the impact of excessive dollar transactions in the country’s maritime sector.
Speaking over the weekend at a press conference held at the Lagos Yacht Club, Victoria Island, the Chairman of SAN, Mrs. Boma Alabi (SAN), highlighted the persistent challenges faced by the sector, attributing them largely to the exchange rate disparity between the naira and the US dollar.
Alabi, who also serves as the President of the Shipping, Shipping Agencies, Clearing, and Forwarding Employers Association, emphasized that the high demand for dollars in the industry was taking a toll on businesses.
She said “this is hinged on the disparity between the naira and the dollar exchange, because they are collecting in dollars; yes, they are collecting in dollars, and ultimately, it is depleting.”
She further questioned why transactions within Nigeria should be conducted in US dollars, calling for an end to dollarization in the economy.
“Stop dollarising our economy. Why are you collecting in USD in Nigeria? Why is the Nigerian government collecting in USD? The shipping lines will collect payment in naira; they will source dollars to buy,” Alabi stated.
In addition to concerns over dollar transactions, Alabi stressed the need for port expansion, arguing that Nigerian ports cannot remain competitive if the cost of doing business remains high.
Also speaking at the event, the Deputy Managing Director of CMA CGM Shipping Company, Mr. Ramesh Saraf, urged the government to provide support to ensure businesses in the sector remain viable.
Comparing Nigeria’s port activities with Ghana’s, Saraf pointed out that Meridian Ports Service Ltd., which operates Terminal C in Ghana’s Tema Port, recorded 1.9 million twenty-foot equivalent units (TEUs) in 2024, while Nigerian ports handled only 1.2 million TEUs within the same period.
He noted that reducing port charges would attract more cargo to Nigeria.
“Lekki Deep Sea Port started operation in April 2023 with less than half the capacity of cargo, and now less operation is taking place at the port.
“The cost of operation in Lekki Deep Sea Port is triple the port charges in other ports across the world,” Saraf stated.
The concerns raised by industry leaders underscore the urgent need for policy adjustments to enhance Nigeria’s maritime competitiveness and ease the financial strain on stakeholders.
