Port congestion, delays, inefficient cargo clearance procedures, multiple charges increase manufacturing costs – LCCI

By Gboyega Oni

The Lagos Chamber of Commerce and Industry (LCCI) has observed that port congestion, delays, inefficient cargo clearance procedures, multiple charges, road infrastructure deficiencies and avoidable administrative bottlenecks have significantly increased the manufacturing costs in Nigeria.

LCCI said high logistics costs remained a major constraint on the competitiveness of Nigerian businesses as all these bottlenecks have continued to increase the costs of manufacturers in moving their cargos out of the ports.

LCCI President, Engineer Leye Kupoluyi, made this observation while addressing the media on the State of the Economy at the third quarter review of the national economy by LCCI in Lagos on Wednesday, October 14, 2026.

The LCCI President said “manufacturers in Apapa report that trucks are still stopped by several agencies and by non-state actors between the ports and their factories. Operators estimate that renewed congestion on the port corridor has cost about ₦100 billion.

“These challenges are particularly significant for manufacturers, import-dependent businesses, exporters and companies operating across multiple states.

“We urge government to accelerate port modernisation, improve cargo evacuation, strengthen coordination among border and port agencies, and eliminate unnecessary checkpoints and unofficial charges along major transportation corridors.

“Trade facilitation should be treated as a national competitiveness priority. Faster and more predictable movement of goods will reduce costs, improve working-capital efficiency and strengthen Nigeria’s position in regional and international markets.”

Despite the new tax laws in place, Engineer Leye Kupoluyi said manufacturers are still complaining of multiple taxation as their most pressing constraint, ahead of insecurity and interest rates.

According to him, “in the CBN’s September 2026 Business Expectations Survey, firms ranked high and multiple taxation as their most pressing constraint, ahead of insecurity and interest rates. This is happening nine months after the new tax laws consolidated more than 100 sub-national taxes into nine revenue heads, abolished revenue roadblocks and banned cash collection, with penalties of up to ₦5 million or three years’ imprisonment.

“We call on the Joint Revenue Board and state governments to publish a consolidated schedule of lawful levies for each state, to prosecute illegal collectors visibly under the new penalties, and to establish a tax ombudsman. We also support a single consolidated bill for port-related charges and a no-tout zone across Lagos industrial and port areas.”

On agriculture, Kupoluyi said the industry estimates suggest that more than half of Nigeria’s cocoa beans may not meet its traceability requirements. Adding that cocoa earned ₦596.9 billion in Q1 2026, about 51% of agricultural export earnings. A large share of a key export is at risk within three months.

“We call on the Federal Ministry of Agriculture and Food Security, the Nigerian Export Promotion Council (NEPC) and state governments to fund rapid geolocation mapping of cocoa farms and a national traceability platform before the December deadline.

“We also call for all major export-policy announcements to be issued by a single authoritative voice, with clear timelines, so that markets are not unsettled by remarks later withdrawn,” said the LCCI President.

He noted that high energy costs are undermining competitiveness as energy costs remain one of the most significant concerns confronting businesses.

According to him, “the sharp increases in petrol and diesel prices during the third quarter have raised the cost of operating generators, transporting goods, distributing products and providing essential services.

“We therefore call for a more comprehensive energy-cost reduction programme, including reliable electricity supply, accelerated gas-to-power development, improved domestic refining efficiency, greater competition and lower distribution costs. Businesses need energy prices that enable them to produce competitively, not simply arrangements that delay the transmission of higher costs.”

On insecurity and its economic consequences, LCCI admitted that insecurity remains a significant threat to enterprise development, agricultural productivity and investment.

Kupoluyi said “businesses incur additional costs through private security arrangements, disruptions to transportation, higher insurance expenses and the need to modify supply chains.

“In agricultural areas, insecurity can constrain cultivation, harvesting and the movement of produce to markets.

“We urge government to strengthen security across farming communities, industrial corridors, transportation routes and commercial centres.

“Security is not only a national priority; it is also a prerequisite for productive investment and economic competitiveness.”

On priorities for the fourth quarter of 2026, the LCCI urged the Federal Government to focus on reducing the cost of energy and transportation, accelerating support for manufacturing and SMEs, sustaining disinflation while protecting productive investment, improving the tax and regulatory environment, strengthening food supply chains and agricultural productivity, and strengthening public-private sector dialogue and accountability

“We urge the government to institutionalize regular consultations with organized business on the implementation of economic policies. Such engagement should go beyond announcements and provide an opportunity to examine evidence, resolve bottlenecks and assess measurable outcomes,” said Kupoluyi.

“As a foremost advocacy body for the private sector in Nigeria, we remain committed to promoting a thriving, inclusive, and sustainable business environment. Today, we are here to provide an informed assessment of Nigeria’s economy and outline the critical issues that have shaped the economic landscape over the last quarter. At this conference, I will be presenting the executive summary of the state of the economy report, which will be shared with you after my speech.

This approach has become a hallmark of our public policy advocacy efforts, driven by our unwavering commitment to fostering a stronger economy and a more business-enabling environment. Through comprehensive macroeconomic diagnostics during these briefing sessions, we aim to highlight critical areas of concern and present actionable recommendations to the Government. We aim to champion policy alternatives that empower the private sector to thrive and contribute meaningfully to national development,” said he.