Nigerian exporters are increasingly alarmed by the soaring logistics costs associated with road transportation along the Lagos–Accra trade route, as multiple levies, unofficial fees, and red tape imposed by transit countries—particularly Benin, Togo, and Ghana—continue to hamper regional trade efforts.

Escalating Transportation Costs

According to recent reports, transporting a truckload of goods from Nigeria to Ghana now costs over N10 million, a figure that is significantly eating into exporters’ margins and questioning the viability of intra-African trade. A comprehensive study by the West African Association for Cross-Border Trade in Agro-Forestry-Pastoral and Fisheries Products (WACTAF) illustrates how these costs accumulate across borders, especially highlighting the toll taken by Benin, which remains the most expensive segment of the route.

Breakdown of Costs

The study reveals that for a truckload of goods valued at N100 million (roughly $67,000), Nigerian exporters face combined charges exceeding N10.84 million when including expenses in Nigeria, Benin, Togo, and Ghana.

• Benin: The costs here are the highest, primarily due to a mix of official and unofficial levies. After crossing into Benin, exporters must contend with:
  • Road maintenance fee (0.85% of CIF, N850,000)
  • Security tax (0.50%, N500,000)
  • Customs bond (0.25%, N250,000)
  • Statistics levy (7.23%, N7.23 million)
  • Customs stamp fee (0.4%, N28,920)
  • Flat charges such as a tracking fee (75,000 CFA) and undocumented clearing services

  The total for transit through Benin alone adds up to an estimated N9.05 million.

• Togo: Upon entry into Togo, additional costs accrue:
  • Statistics levy (1%, N1 million)
  • Customs bond (0.25%)
  • Tracking fee (15,000 CFA)
  • Miscellaneous expenses like truck scaling and other services (around N50,000)
• Ghana: Final charges at the Togo–Ghana border include:
  • Administrative fee ($200 or about N300,000)
  • Tracking device (50,000 CFA)
  • Transit board fee (30,000 CFA)
  • Processing fee (50,000 CFA)

All these cumulative costs tally to approximately N1.78 million, bringing the total transportation expense from Nigeria to Ghana by road to about N10.84 million per truckload. It’s crucial to note that this does not include domestic logistics costs within Nigeria, such as warehousing, inland haulage, and insurance, which further strain exporters.

Impact on Regional Trade

The exorbitant costs threaten the competitiveness of Nigerian exports, undermine the objectives of the African Continental Free Trade Area (AfCFTA), and raise concerns about the practical benefits of regional agreements. Exporters are raising the alarm, calling for urgent reforms to reduce non-tariff barriers, standardise customs procedures, and increase transparency at border crossings.

Exploring Alternative Transport Options

In response to these challenges, industry leaders advocate for diversified logistics strategies. Olubunmi Olumekun, President of the Association of West African Exporters and Marine Professionals (AWAEMAP), emphasised exploring alternative routes, such as inland trans-shipment via barges, to mitigate high costs.

Olumekun shared his positive experience using barge operations for transporting goods to Togo, which he says are more cost-effective and efficient than traditional road freight. He explained that Nigerian barges have been contracted to operate within neighbouring West African countries, allowing for quicker, cheaper, and smoother transactions, often without the need for ocean transit.

While the ambitions of the AfCFTA are promising, Nigerian exporters face pressing logistical hurdles that require immediate attention. Streamlining border procedures, reducing unofficial fees, and exploring inland transportation alternatives could be pivotal in revitalising regional trade, making it more sustainable and profitable for Nigerian businesses.