Lilypond’s export boom faces logistical hurdles despite $1.9bn revenue

Nigeria’s export sector recorded a win in 2024, with goods processed through the Lilypond Export Command reaching an estimated $1.9 billion.

However, while the newly consolidated export terminal has streamlined trade facilitation, persistent logistical challenges continue to stymie efficiency.

Lilypond Command, which became the sole handler of export processes for southwest ports in July 2024, has driven a surge in outbound trade, with exports worth $225.1 million facilitated in February 2025 alone.

The command’s success has been credited to seamless inter-agency coordination, with the Nigeria Customs Service (NCS) working alongside the Department of State Services (DSS), the National Drug Law Enforcement Agency (NDLEA), and quarantine services to expedite clearance.

Yet, despite these gains, bottlenecks remain, particularly due to the electronic call-up system (Eto), which regulates truck access to ports.

Export-bound containers often remain stranded at Lilypond for extended periods, not because of Customs delays, but due to congestion caused by imported goods, especially fast-track shipments that take priority.

Ajibola Odusanya, the Customs area controller of the command, explained that this backlog undermines the progress made in centralising export processing, during a roundtable discussion with maritime reporters.

“The ETO call-up system, truck drivers’ nonchalance and priority given to imports especially fast-track containers have been identified as the reasons for delay in export cargo movement at the Lilypond Export Command,” Odusanya stated.

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He further clarified that the command has streamlined the export process but a lack of available slots for trucks to enter the ports remains a major challenge. “Despite the command’s efforts, numerous containers remain stranded at Lilypond due to the inability of trucks to secure clearance under the Eto system,” he said.

Another issue compounding the delays is the reluctance of truck drivers to prioritise exports.

“Drivers’ nonchalance in leaving their trucks at the terminal until they get TDO for import containers to be freighted out before moving exports to the port is another cause of delay,” Odusanya noted.

This has particularly affected the Apapa port, Nigeria’s busiest gateway for exports, where congestion is more severe. Tin Can port, by contrast, has fared better due to the existence of an export processing terminal that helps manage cargo flow.

But logistics is not the only problem. the Nigerian Export Proceeds (NXP) form, a critical trade requirement, has also posed challenges. While compliance measures have been strengthened, exporters have raised concerns about inefficiencies in the system.

The recent suspension of Rwanda’s NXP framework has intensified scrutiny, with stakeholders questioning whether Nigeria should follow suit.

Odusanya reassured exporters that Customs is working to resolve these concerns while maintaining regulatory compliance. “We are actively engaging with stakeholders to ensure that the system functions optimally to further improve Nigeria’s export processes,” he said.

He urged exporters to leverage the centralised system at Lilypond, highlighting that its design eliminates unnecessary bottlenecks.

Despite the hurdles, Lilypond’s role in bolstering Nigeria’s export performance remains evident. However, for the command’s success to be sustained, industry stakeholders stress the need for urgent reforms in port logistics and truck movement regulations.

“Without these changes, the full potential of Lilypond’s export boom risks being curtailed by systemic inefficiencies,” Odusanya warned.