Small businesses in manufacturing and export say the cost of production has risen as a result of congestion in Apapa and Tin Can ports.
They say cost of logistics has risen sporadically owing to the congestion, lamenting that corruption is now the order of the day at the ports.
Jon Kachinwu, CEO of Jon Tudy Enterprises, an exporter to the United States, said he used to pay N55, 000 to N65, 000 for a 40-foot container from his Yaba factory to Tin Can four years ago, but now pays N350,000. He disclosed that agency fees had also risen from N350,000 to N650,000 as a result of the mess in Apapa and Tin Can.
“This is why I call on the government to develop other ports, and provide adequate security there,” he recommended.
A manufacturer, who prefers anonymity, said he paid N1 million to bring in his container in December 2019, which included N400,000 for transport to his Ojota/ Mile 12 factory.
“The commissioner of police has to sign before you move in or move out your container. And this involves money. You have to ‘settle’ the police, the Navy and the Army, otherwise your container will be there for three weeks. But once you pay, your container will be free in one week, ” the manufacturer said.
ODINAKA ANUDU
