The Editorial Board, Author at Businessday NG

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The Editorial Board Jul 13, 2026

For decades, one of the biggest obstacles confronting Nigeria’s creative and technology industries has been the inability to convert intellectual...

Why Nigeria must start measuring what really matters

The Editorial Board Jul 10, 2026

Nigeria is not short of policies. It is short of execution. Every administration promises economic diversification, improved infrastructure, better schools,...

Fresh Gulf tensions dim hopes of clearing Nigeria’s port container backlog Bethel Olujobi A gradual recovery in global shipping that had raised hopes of improved cargo movement and lower freight costs for patient Nigerian shippers now faces fresh uncertainty after renewed hostilities between the United States and Iran reignited concerns over the security of the Strait of Hormuz. Donald Trump, president of the United States, during the North Atlantic Treaty Organisation (NATO) Summit in Turkey last week, prematurely declared the interim ceasefire with Iran “over” after American forces launched fresh strikes in response to attacks on commercial vessels in the Strait of Hormuz, a major waterway for about a quarter of the world’s energy trade. Iran, in turn, accused the US of violating the memorandum of understanding that had underpinned the 60-day truce. Fireworks ensued on Sunday, severing any hope of shipping in the near term. The rekindled tensions have renewed fears that shipping lines, insurers and cargo owners could once again adopt a wait-and-see approach, delaying the market correction many Nigerian businesses had hoped was finally underway following the reopening of the Strait. Oil prices rose again on the back of fresh tensions, momentarily crossing $80 per barrel before hovering at $76 as of July 10. Until this week, there were growing signs that the worst of the disruption was beginning to ease. BusinessDay’s analysis of Kpler and MarineTraffic data showed an average of 44 vessels transited the Strait of Hormuz daily between June 19 and July 7, compared with near-zero movements at the height of the blockade, although still well below the over 100 daily crossings recorded before the conflict. Global feeder shipping vessels entered the region, suggesting liner operators were gradually reconnecting Gulf services with international shipping networks. As of July 9, after the crossfires, crossings through the Strait dropped for a second consecutive day to 22 from 30 the previous day, according to Kpler data. “Renewed US-Iran military escalation has weakened confidence that diplomacy will provide near-term stability,” the maritime tracker reported. It particularly noted that strong export volumes reflect the clearance of delayed cargoes rather than a return to normal trading conditions. In Nigeria, several export containers sit idle at Nigeria’s major ports awaiting vessels for evacuation. The backlog has run into thousands, trapping billions in naira at port terminals. Recently, the Nigeria Shippers’ Council (NSC) reported that up to 1,800 of those containers sit in APM terminals at the Apapa port in Lagos. APM Terminals is Nigeria’s largest terminal operator. Nigeria handled 102,803 TEUs of export-laden containers in the first quarter of 2026, according to the Nigerian Ports Authority, equivalent to about 34,000 TEUs a month or roughly 500 to 600 containers a day. Even a slight disruption to vessel schedules and terminal operations can lead to a significant clog in the system. Industry players had previously predicted that normalcy could return in a couple of weeks, at worst, a few months. The NSC also said Maersk shipping line had promised to send a vessel “next week” to transport the container cargo. But the renewed exchange of fire has once again clouded that outlook. “With the renewed hostility in the Persian Gulf now and the Strait of Hormuz, I don’t think there’s anybody in the world now that can say what is going to happen next. I think we, like every other person in the world, just have to wait and see,” said Aminu Umar, president of the Nigerian Chamber of Shipping. Only two weeks back, shortly after the signing of the ceasefire deal, Umar had told BusinessDay that he expected the shipping freight market to “correct itself” in two months, depending on how well the resolutions that opened the Strait were maintained. “A permanent deal could lower freight costs and oil costs, and ease some logistics blocks,” he had said. So far, shipping companies have yet to declare any major changes to their operations in and around the Gulf since the fresh attacks. The United Kingdom Maritime Trade Operations (UKMTO) Joint Maritime Information Centre advisory noted on Thursday that commercial traffic via both the Southern Omani corridor and the northern Iranian-controlled route resumed at reduced levels in the 48 hours prior. “US-assisted commercial transits proceeded without interruption despite the elevated threat environment,” it wrote. Iran Revolutionary Guard Corps (IRGC) hailing, UAS activity and targeted surveillance have continued through the period, indicating continued monitoring of commercial shipping and a continued intent to assert presence across transit lanes. Umar said that while no fresh closure of the Strait of Hormuz had been announced, uncertainty alone could influence shipping decisions. “Many shipowners will exercise caution. Nobody wants to be the one they test the situation with.” Since the strikes in late February, shipping lines have imposed multiple risk surcharges as a precaution against emergencies that have seen previously high shipping costs double. Umar said shipowners could decide to delay sailings, cut frequency or keep vessels on standby as a precaution until there is greater clarity over the security situation, even if Iran does not formally restrict navigation through the Strait. “As a shipowner, I would tell my ship to stand by and not cross until matters become clearer,” he said. Umar, who is also on the board of the International Chamber of Shipping, warned that prolonged escalation could also spill beyond the Strait of Hormuz into the Red Sea and Gulf of Aden through attacks by Iran-backed Houthi forces in Yemen, potentially threatening another critical shipping corridor linking Asia and Europe through the Suez Canal. “If hostilities continue, then automatically it creates a big problem for voyage periods,” Umar said. “Many shipowners will review the risk because nobody wants to be the first vessel caught in a new escalation.” The renewed uncertainty drives a spear through the hopes of Nigerian exporters who had hoped conditions were beginning to improve. Sulaiman Ayokunle, senior special assistant on media to Emenike Nwokeoji, president of the Association of Nigerian Licensed Customs Agents (ANLCA), said the industry had expected more vessel arrivals, the return of empty containers and a gradual easing of terminal congestion as shipping normalised, even though freight rates and war-related surcharges would take longer. “We expected more inflow. We expected that the congestion created by the export containers that littered most of these terminals would soon be lifted,” he said. Patrick Omoyeni of the Association of Nigerian Exporters had said clearing the backlog created during the conflict would still take up to four months even under stable conditions. Now it might take even longer, leading to losses for businesses. In Nigeria, where imported goods make up the bulk of input for manufacturing and food processing, Umar said the crisis once again exposes Nigeria’s vulnerability to global supply chain shocks and the need to deepen domestic manufacturing and industrial capacity. “The long-term solution is to industrialise more so that more of what we import is produced locally. That is how we reduce our exposure to disruptions like this in the future,” he said.

The Strait of Hormuz should not hold Nigeria hostage

The Editorial Board Jul 08, 2026

Every time tensions rise in the Strait of Hormuz, Nigerians begin to worry about higher fuel prices, rising transport fares...

Worries over Nigeria’s oil fortunes as weak midstream capacity, policy mishmash bite deeper

Endless courtship of oil investors: Time to convert promises into prosperity

The Editorial Board Jul 07, 2026

For decades, Nigeria has travelled the world promoting the same investment story: vast oil reserves, abundant natural gas, a strategic...

When power failure becomes a business killer

The Editorial Board Jul 06, 2026

Nigeria’s micro, small and medium enterprises (MSMEs) are once again under intense economic pressure. As if soaring inflation, weak consumer...

When Nigerians return home, will Nigeria be ready?

The Editorial Board Jul 03, 2026

Every nation is eventually tested by how it treats citizens returning home after adversity abroad. Nigeria is facing that test...

Economic reform does not end with prices - It begins there

The Editorial Board Jul 02, 2026

For much of the past three years, Nigeria’s economic debate has revolved around prices. The price of petrol. The value...

Nigeria’s pension push into private markets hits policy snags

The pension time bomb Nigeria can no longer ignore

The Editorial Board Jul 01, 2026

The story of Emeka, a retiree who discovered that nearly three decades of work had produced a pension balance of...

Rising rig count: A welcome recovery that must not be squandered

The Editorial Board Jun 30, 2026

For an economy long dependent on oil revenues, Nigeria’s recent resurgence in drilling activity offers encouraging news. The active oil...

Turning economic reforms into shared prosperity

The Editorial Board Jun 29, 2026

For years, economists, business leaders and policymakers have agreed that macroeconomic stability is essential for sustainable growth. Stable exchange rates,...

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