Economy
Nigerian Importers Cry Over High Cargoes Fees by International Shippers
By Adedapo Adesanya
Stakeholders in the import scene in Nigeria are lamenting the huge surcharge imposed on them by the international shipping firms on cargoes imported from across the world into the country.
The surcharge is adding to the high cost of doing business in the Nigerian ports, coupled with the challenges of infrastructure deficiency and cumbersome shipping process at the nation’s gateway.
Since late last year, a German shipping firm, Hapag-Lloyd, has imposed a revised Peak Season Surcharge (PSS) on all container types from across the world to Tin Can Island and Apapa ports.
According to reports, documents obtained by the media showed that about $1025 surcharge is slammed on 20 feet and 40 feet containers through cargoes coming from the United States and other US territories. Likewise, from China, Taiwan, Hong Kong, and Macau.
It was also disclosed by shippers that charges from cargoes from the rest of the world are also pegged at $1025 or an equivalent of €930 accordingly.
Notably, they complained that the charges are different from the ocean tariff rates as well as bunker-related surcharges, security-related surcharges, terminal handling charges, among others that shore up the cost of shipping in Nigeria.
Coupled with the strain of the coronavirus pandemic, industries are complaining as these high prices will take a toll on its profit.
According to the Chairman, Shippers Association Lagos State, Mr Jonathan Nichol lamented the huge shipping costs and expressed the group’s readiness to take it up with appropriate agencies.
Mr Nichol said the surcharge could be linked to congestion at Lagos ports, but it is uncalled for, considering the negative effect of COVID-19, “we will certainly induce discussions on this with the Shippers Council”.
He stressed the need to review the costs of shipping in Nigeria, noting that “importers hardly make profits” due to excessive charges.
On the part of the Nigerian Shippers Council (NSC), the Executive Secretary and Chief Executive Officer, Mr Hassan Bello, described the charges as “economic sabotage”, saying the Council is against the action of the shipping firm.
He said, “We are protesting against it vehemently. There was no notice to us and the shippers that the charge was imminent. From our intelligence, these charges are over $1,000. It is discriminatory. It is insensitive. Just when the Nigerian economy is recovering a little bit from the effect of COVID-19, it is insensitive for anybody to slam such charges of over $1,000 on Nigeria’s trade.
“It is discriminatory because it is not happening in Togo, Benin or Ghana, why should it be in Nigeria.
“We have written a strong letter to the shipping association of Nigeria and we also wrote to their principals overseas, because this is not a local charge.
“Why should Nigeria be the recovery ground for shipping companies? We have three lines of action on the internal level; we are going to call on the Union of Africa’s Shippers’ Council; Global Shippers’ Association and Global Shippers Forum.
“On the national level, we are rallying around the organized private sector, I am already in talks with Lagos Chamber of Commerce and Industry (LCCI), I will talk to Manufacturers Association of Nigeria (MAN), as well as big time shippers like Dangote and Nigerian Breweries among others.
“We should all come together and fight against these unnecessary charges. The charges are unilateral and arbitral and we are going to protest against it because it is economic sabotage.
“It goes deep into Nigeria’s economic recovery. It is against our resolve to recover from the effect of COVID-19,” he said.
Also bemoaning the development, the President, Importers Association of Nigeria, Mr Kingsley Chikezie said the importers are not happy about the additional charges from the shipping firm, even at a time they were complaining about the high cost of shipping at the ports.
He explained that a lot of things are happening at the ports including the issue of transfer charges among others, appealing to the authorities to ensure urgent review of the charges.
However, some industrialists who were severely affected by the surcharge burden have urged the Federal Government to institute litigation against the erring shipping firm for operating against the rule of trade facilitation agenda of International Maritime Organisation (IMO) during the pandemic period.
Notwithstanding the negative effects of the COVID-19 pandemic, German container shipping company Hapag-Lloyd closed the first six months of this year with a profit. The group profit stood at $314 million in H1 2020, compared to $165 million seen in the corresponding period a year earlier.
By Aduragbemi Omiyale
The N3.2 billion rights issue of Universal Insurance Plc has been extended by almost two weeks after securing regulatory approval.
The exercise was earlier scheduled to close on June 10, 2026, but will now close on Monday, June 22, 2026.
The extension was granted by the Securities and Exchange Commission (SEC) after a request from the underwriting organisation.
In the rights issue, Universal Insurance is offering to shareholders 2,666,666,667 ordinary shares of 50 Kobo each at N1.20 per share on the basis of one new ordinary share for every existing six ordinary shares held as of the close of business on Monday, March 30, 2026.
Subscription for the acquisition of the company’s extra shares opened on Wednesday, May 13, 2026.
The extension gives investors more time to increase their stake in the insurance firm, which intends to use proceeds from the exercise to boost its capital base, as mandated by the National Insurance Commission (NAICOM).
Insurance companies operating in Nigeria have been given till July 31, 2026, to shore up their capital base or pack up. Operators can also explore a merger if they wish.
By Dipo Olowookere
The Nigerian Exchange (NGX) Limited opened its doors to market participants in four days last week as a result of a public holiday observed on Friday, June 12, for 2026 Democracy Day in the country.
In the week, investors bought and sold 4.964 billion shares worth N207.521 billion in 235,966 deals, as against the 3.966 billion shares valued at N175.659 billion that exchanged hands in 343,587 deals a week earlier.
Analysis showed that the financial services industry led the activity chart with 4.116 billion shares valued at N84.607 billion in 96,165 deals, contributing 82.92 per cent and 40.77 per cent to the total trading volume and value, respectively.
The services sector transacted 232.479 million shares worth N4.955 billion in 17,614 deals, while the industrial goods segment exchanged 144.988 million shares worth N39.077 billion in 24,775 deals.
Sterling Holdings, FCMB, and Access Holdings were the most traded stocks with 2.883 billion units sold for N36.188 billion in 15,533 deals, accounting for 58.09 per cent and 17.44 per cent of the total trading volume and value, respectively.
A total of 40 equities appreciated in the week versus 23 equities in the previous week, 53 equities depreciated versus 65 equities a week earlier, and 53 equities remained unchanged versus 58 equities in the preceding week.
ABC Transport was the best-performing equity for the week after it gained 25.60 per cent to trade at N7.80, Consolidated Hallmark appreciated by 23.13 per cent to N8.25, Abbey Mortgage Bank rose by 21.93 per cent to N11.40, Infinity Trust Mortgage Bank grew by 20.32 per cent to N11.25, and Austin Laz soared by 15.16 per cent to N4.33.
The worst-performing equity last week was Fidson Healthcare because of its 25.86 per cent loss, closing at N101.20. Neimeth declined by 19.14 per cent to N8.55, Union Homes REIT shed 17.36 per cent to close at N70.00, SUNU Assurances slipped by 11.38 per cent to N3.97, and Unilever Nigeria dropped 10.26 per cent to trade at N140.00.
As for the index movement, the All-Share Index (ASI) and the market capitalisation chalked up 0.88 per cent each to settle at 244,738.74 points and N156.970 trillion, respectively.
Similarly, all other indices finished higher apart from the pension, AFR Bank Value, MERI Growth, MERI Value, consumer goods, Lotus II, industrial goods, sovereign bond and commodity indices, which fell by 0.03 per cent, 1.20 per cent, 0.21 per cent, 1.61 per cent, 0.54 per cent, 0.51 per cent, 1.00 per cent, 2.04 per cent and 0.34 per cent, respectively.
By Adedapo Adesanya
Brent crude prices fell by $3.05 or 3.37 per cent to $87.33 per barrel on Friday, the lowest level since early March, triggered by expectations of an imminent peace agreement between the United States and Iran.
Also, the US West Texas Intermediate (WTI) crude finished at $84.88 a barrel after it gave up $2.83 or 3.23 per cent. It was its lowest level since April 17.
Reuters reported that a memorandum between the US and Iran to halt the war in the Gulf could be signed as soon as Sunday, citing sources.
The sources indicate that the US would immediately begin releasing billions of Dollars in frozen Iranian assets and waive sanctions on its oil exports, in return for Iran opening the strait.
The proposals also include discussion of possible war reparations for Iran and dropping longstanding US demands for limits on Iran’s missile program, the sources were quoted as saying.
Meanwhile, Iranian Foreign Minister Abbas Araqchi said on Friday that a memorandum of understanding had not yet been signed and could still change.
He also said that management of the Strait of Hormuz would not return to the pre-war era, that sovereignty over the strait belonged to Iran and Oman, and that Iran would secure safe passage for ships through it.
US President Donald Trump called off threatened air strikes against Iran on Thursday, while it was reported that final negotiations on the memorandum would focus on nuclear and economic issues but would exclude discussions about Iran’s missile programme.
On Thursday, Iran announced a complete closure of the Strait of Hormuz, saying it would fire on any ship trying to pass through.
Traffic through the strait, which normally carries a fifth of global oil and liquefied natural gas shipments, has been extremely limited as a result of the war.
The US military, however, said on social media that commercial ships continued to transit the waterway.
Goldman Sachs lowered its 2027 average Brent forecast to $80 a barrel on higher supply and lower demand, but expects prices to exceed the 2025 average on stockpiling of OECD commercial oil stocks and a security premium for disruptions.
The Organisation of the Petroleum Exporting Countries (OPEC) on Thursday lowered its forecast for 2026 world oil demand growth to 970,000 barrels per day from a previous 1.17 million barrels per day, its second straight downward revision.
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