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Business

Nigerians react as port haulage cost reportedly increases to N1.3 million

Nigerians react to the development at the ports as haulage costs increase astronomically.

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FG records N6 trillion loss across sectors due to Lagos gridlock

The recent increase in the haulage cost of moving containers from the Apapa port has elicited an uproar, as Nigerians expressed their reservations via social media.

The development is a result of the monetary and implicit cost impact of the recent gridlock on operators, as the increase in the number of shipments arriving at the port, poor road infrastructure and alleged law enforcement breakdown at the port has led to exorbitant payments.

The gridlock has translated to higher detention and demurrage cost of moving shipments at the port, as freight operators painfully haul their shipment from the port terminal.

Haulage cost continues to bite into the profits of the businesses of Nigerians and adversely affect freight companies and port operators, as these entities have to pay huge sums, running to millions of naira, just to move a container from the terminals.

However, the prospects of new investments in this space looks gloomy, with existing operators battling with the astronomical increase in detention and demurrage charges, as the only option of moving shipment by road is a tough alternative, owing to the poor transportation infrastructure and the underdeveloped rail network and high demand for freight logistics services.

This reality continues to mount pressure on stakeholders in the sector and Nigerians in general, as the prices of commodities are hugely impacted.

What they are saying

A number of freights and forwarding business owners have expressed dissatisfaction recently on social media. Gbemi Ola, a Freight Forwarding Businessperson, took to social media to express how disappointing the current situation is. He tweeted,

  • “The recent situation at the port has made Nigeria a very unfriendly place to do business and this has limited the prospects of growth in the logistics space, as freight operators pay huge amount of money to forcefully haul their shipment from the port. The cost of trucking a container from Apapa to 10miles away has increased from N150k to N1.3 million.”

Joshua Aribido, another aggrieved Nigerian, tweeted that,

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  • “At current rates, since the last two weeks till date, the cost of moving a 40ft container from the terminal just outside black gate or National is N1.2Million. To move this same container to Ladipo, freight operators pay N1.8M.”

The operators also disclosed that aside the increase in the demand for freight service and the poor state of transportation infrastructure in the country, security operatives including Nigerian Ports Authority (NPA) security officials, Police and the Presidential task team are responsible for the sporadic increase in the haulage and demurrage cost.

In case you missed it

  • Nairametrics reported last week that the haulage cost of moving containers from the Tin Can Island Port terminal increased from N1.2 million to N1.8 million in a week.
  • However, the report also revealed that haulage cost of moving a truck miles away from the terminal increased by more than a thousand per cent within the review period, including detention and demurrage costs.

Omokolade Ajayi is a graduate of Economics, and a certificate holder of the CFA Institute’s Investment Foundation Program. He is a business analyst, and equity market researcher, with wealth of experience as a retail investor. He is a business owner and a stern advocate of Financial literacy, who believes in the huge economic prospect of the Nigerian Payment channels and Fintech space.

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    Business

    Lagos State seeks investors in aquatic and livestock agriculture value chain

    The Commissioner revealed that the scheme was in line with the State’s five-year strategic agriculture roadmap.

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    Lagos State begins recruitment for Agripreneurship programme, Sanwo-Olu confirms Abisola Olusanya as new Agriculture commissioner

    The Lagos State Government announced it is seeking private sector collaboration for Agriculture sector value chain development in livestock feed mills, fisheries and red meat.

    This was disclosed by the State Commissioner for Agriculture, Ms Abisola Olusanya, in a statement on Sunday in Lagos.

    The Commissioner revealed that the scheme was in line with the State’s five-year strategic agriculture roadmap, as the State identified the 3 main sectors for value chain disruption.

    READ: Lagos goes tough on illegal conversion of land use, enforcement begins in Ikeja GRA, Lekki, others

    She also added that investment in the sectors would also develop jobs for the industry and boost the State’s GDP growth, through Private Sector collaboration as Lagos residents consume over N5 trillion worth of food annually.

    “The objective is to stimulate and encourage more public-private partnerships in the three value chains,” she said.

    “When you consider this pool of transactions happening in Lagos, it shows that we are the market. For instance, we demand over 400,000 metric tons of fish on an annual basis.

    “But our fishermen and our aquaculture farmers are only able to produce just about 174,000 metric tons with deficit of 200,000 metric tons,” she added.

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    READ: CBN invests over N120 billion on 320,000 farmers across CTG within four years

    She also disclosed that the state has 9,000 artisanal fishermen, and bringing more youths into the space will increase the level of fish and seafood being harnessed from our water bodies. Looking at the transactional value on an annual basis, the fisheries sector is worth well over N120billion according to her.

    In case you missed it: Nigeria exported agricultural products worth N321.5 billion in 2020, representing a 19.16% increase when compared to N269.8 billion recorded in 2019 and a 6.27% increase compared to N302.28 billion recorded in 2018.

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    Business

    #DigitalSkillsTraining: FG announces conclusion of selection process

    Only successful applicants that are contacted by the Ministry are to report at the training venue.

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    President Buhari to address Nigerians on Lekki toll plaza shootings after investigation , Youth Investment Fund:  Ministry of Finance and CBN to launch provision of funds- Minister, Federal Ministry of Youth and Sports launch DEEL initiative

    The Federal Government through the Ministry of Youth and Sports disclosed that the selection process for the upcoming Digital Skills Training has been concluded for the #DigitalSkillsTraining from April 11th to 30th, 2021.

    This was disclosed in a statement by the Ministry of Youth and Sport on Sunday evening.

    “The Federal Ministry of Youth and Sports Development wishes to inform the general public and all Nigerian Youths that the selection process has been concluded for successful applicants for the #DigitalSkillsTraining scheduled for April 11 to 30, 2021,” the statement said.

    The Ministry added that only successful applicants that were contacted by the Ministry are to report at the training venue. Those who were not successful but arrive at the training would not be admitted.

    Upcoming #DigitalSkillsTraining Programmes of the Ministry will be widely publicized on youthandsport.gov.ng , on : noya.ng and on the Ministry’s social media handles,” the statement added.

    What you should know 

    Recall that Nairametrics reported in November 2020, that the Ministry of Youths and Sports Development announced it will scale up its digital skills training to cover 500,000 youths across the country after securing funding under the COVID-19 stimulus budget.

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