Clearing cargo in Nigeria continues to be demanding and expensive, burdened by numerous bottlenecks and the nation’s ranking as one of the priciest ports in the sub-region. To remain competitive, clearing agents and importers need to adopt more strategic and efficient methods that reduce costs while still ensuring prompt cargo delivery. Through innovation, better processes, and reduced waste, operators can ease their financial strain. PUNCH highlights 15 effective strategies to achieve this.

In view of the difficulty and enormity of the cost of clearing goods at the Nigerian ports, operators, including licensed agents and their importers, are expected to be very proactive in thinking outside the box on ways these costs can be reduced while still achieving the target, which is timely cargo clearance.

Here are some ways these challenges can be mitigated.

Digital documentation

In the modern era, digitalisation is essential, and efficient cargo clearance increasingly relies on the use of digital tools. Agents should familiarise themselves with electronic document management rather than repeatedly printing forms. The Nigeria Customs Service deserves credit for its modernisation efforts, including the introduction of B’Odogwu and other digital solutions that enhance port processes. With many agencies now accepting electronic documents, costs related to paper, courier services, and storage are significantly reduced.

Share office spaces

The port area is constantly bustling and commercially strategic, but this also drives up the cost of office and business space. For freight forwarders or licensed agents looking to reduce expenses and boost savings, renting full offices in Apapa, Tincan, or Ports & Terminal Multiservice Limited may not be necessary. Instead, they can opt for co-working spaces or smaller shared offices located around port corridors.

Outsource non-core tasks

For a clearing agent who is still building financial stability or just starting out, retaining permanent staff may not be the best option. It is generally advised to delay hiring full-time employees until the business is financially secure. When additional help is required, it is more cost-effective to engage temporary workers during peak periods rather than sustaining a sizeable permanent team.

Accurate documentation

It is commonly said that any task worth doing should be done properly, and this applies strongly to cargo clearance. Rushing the process without confirming that all documentation is accurate can be costly. Research indicates that agents suffer their greatest losses from errors such as inconsistent Pre-Arrival Assessment Reports, incorrect HS codes, valuation mistakes, and delayed duty payments, which often result in demurrage and additional charges. Proper classification and thorough documentation help prevent demurrage, storage fines, repining fees, and quay rent.

Optimise duty payments

Freight forwarding is a highly specialised profession that requires a strong understanding of regulatory procedures and a high level of technical competence. One of the most critical aspects of the job is the accurate use of Harmonised System codes, which determine the duty payable on imported goods. Applying the correct HS codes ensures that clients do not pay more than necessary, as even minor classification errors can lead to significant financial losses or disputes with customs authorities. In addition to proper classification, freight forwarders must always be aware of available duty exemptions, waivers, and concessions that may apply to specific goods or import categories. Taking advantage of these legitimate opportunities helps reduce overall costs and strengthens the value offered to clients. Ultimately, mastering HS codes and understanding exemption policies are essential skills that contribute to smoother clearance processes, improved compliance, and substantial cost savings for both agents and importers.

Use cheaper terminals

To minimise costs and improve savings, clearing agents are encouraged to choose not just less expensive terminals but also more affordable shipping lines. Certain terminals offer reduced handling charges, lower terminal delivery order fees, and more competitive storage rates. By carefully selecting terminals and shipping companies with favourable pricing structures, agents can substantially cut operational expenses. This strategic choice not only benefits their clients but also enhances the agent’s overall cost-efficiency and profitability.

Pre-clear cargo before arrival

Studies indicate that a significant cause of delays in cargo clearance is that many agents wait until the ship has berthed before initiating the necessary clearance procedures. This practice often results in a backlog of tasks that cannot be completed promptly, increasing the risk of demurrage charges and additional costs. To avoid such delays, agents are advised to begin processing the Pre-Arrival Assessment Report well in advance, ensure the manifest is uploaded on time, and verify shipping line charges prior to the vessel’s arrival. Taking these proactive steps allows agents to manage documentation and administrative requirements more efficiently, reducing congestion and streamlining operations at the port. Implementing this approach can lead to substantial savings, with research suggesting that potential demurrage costs can be lowered by approximately 30 to 70 per cent. Early preparation, therefore, is key to cost-effective and timely cargo clearance.

Tracking

Tracking plays a crucial role in ensuring efficient cargo clearance, allowing agents to monitor when a vessel departs from its port of origin and to pinpoint its location at any moment during transit. This information is essential for proper planning, enabling agents to coordinate operations, allocate resources, and prepare documentation ahead of time. It is recommended that agents closely monitor vessel arrivals, shipping line free days, and terminal free days to optimise scheduling and avoid unexpected delays. The use of digital tools in this process is particularly important, as they provide real-time updates and reduce the risk of unforeseen complications. By leveraging technology for tracking, agents can anticipate potential issues, streamline their workflow, and minimise unnecessary costs. Ultimately, effective tracking not only improves operational efficiency but also contributes significantly to cost savings, ensuring a smoother, more predictable cargo clearance process

Negotiate bulk discounts

Negotiating discounts can be difficult for some clearing agents in Nigeria, particularly those who handle relatively small volumes of cargo, as they may not meet the thresholds required to qualify for price reductions. Despite this, shipping lines and port terminals typically offer discounted rates to agents managing larger volumes, recognising the value of consistent, high-volume business. Similarly, haulage companies provide bulk discounts for agents who make block bookings, allowing multiple shipments to be transported at reduced rates. For agents seeking to optimise costs, it is therefore advantageous to explore partnerships or arrangements that consolidate shipments or increase volume, enabling them to benefit from available discounts. By strategically leveraging these opportunities, agents can significantly lower operational expenses, improve profitability, and offer more competitive pricing to their clients, even in a challenging market environment.

Partner with other agents

Container groupage is a practice in which two or more importers combine their shipments into a single container and proportionally share the associated duties based on a prior agreement. This collaborative approach is not limited to importers; clearing agents can also adopt similar strategies by sharing operational resources such as trucks, personnel, warehousing space, and container inspection equipment.

By pooling these resources, agents can achieve greater efficiency, lower overheads, and reduce individual costs significantly.

This method allows smaller operators to benefit from economies of scale, making it possible to handle shipments more cost-effectively.

Additionally, resource sharing enhances coordination, optimises logistics, and minimises idle time or underutilisation of assets. Overall, container groupage and collaborative resource management provide practical solutions for agents aiming to cut expenses while maintaining service quality and operational effectiveness.

Return-trip trucking

Transportation has long been a major contributor to high business costs in Nigeria, particularly due to the poor condition of port access roads and the previously uncoordinated trucking systems. These challenges often resulted in delays, increased fuel consumption, and higher operational expenses for clearing agents and importers. However, recent improvements, including the rehabilitation of port roads and the introduction of the electronic call-up system, ‘Eto’, by the Nigerian Ports Authority and managed by Truck Transit Park Limited, have enhanced efficiency and reduced some of these costs.

Another practical method for cutting transportation expenses is through ‘return-trip trucking’. This approach utilises the truck’s return journey after delivering its initial load. For example, truck transporting goods from Lagos to Kano can be engaged to carry cargo back to Lagos at a negotiated rate, often 50–70 per cent lower, since trucks frequently return empty.

This strategy maximises fleet utilisation while significantly lowering transport costs.

GPS/tracking for fleet

Technology is a key driver of efficient and cost-effective transportation. Implementing GPS tracking for fleets helps prevent fuel theft, unauthorised route changes, and driver downtime, resulting in significant savings. In addition, leveraging affordable digital solutions, such as cargo management software, automated invoicing, WhatsApp Business for client interactions, and Excel or cloud-based accounting platforms, enhances operational efficiency. The use of automation minimises human error, reduces labour costs, and saves valuable time. By integrating these technological tools, agents and logistics operators can streamline processes, improve transparency, and optimise resource utilisation. Overall, technology not only enhances monitoring and control over transportation activities but also contributes to substantial cost reductions, better service delivery, and smoother, more reliable operations across the supply chain.

Strengthen internal controls

For licensed agents or freight forwarders aiming to reduce costs, maintaining proper bookkeeping is crucial. This involves keeping detailed records of all transactions, monitoring cash payments, utilising reliable accounting software, and ensuring transparent client billing systems. Such practices help prevent financial losses, fraud, and unexplained expenditures. Many clearing agents experience setbacks due to ad hoc payments, unauthorised demands, and unreceipted charges. To safeguard finances, it is essential to insist on official receipts, use legitimate payment channels, and maintain clear, transparent fee structures. By implementing robust internal controls and systematic record-keeping, agents can minimise unnecessary losses, enhance accountability, and ensure that operational funds are managed efficiently, contributing to overall cost savings and smoother business operations.

Insist on deposit

This is a critical part of the job that many practitioners often neglect. Out of urgency, some agents start assignments using their own money, expecting payment only after the work is completed, a practice that frequently leads to financial losses. Requesting a deposit before beginning any job helps prevent situations where work is completed but payment is delayed or disputed. Additionally, implementing standardised fees through a structured rate card reduces losses from prolonged negotiations and ensures consistent, predictable income. By combining upfront deposits with clear, fixed pricing, agents can safeguard their finances, minimise risks, and maintain smoother cash flow, ultimately improving operational efficiency and financial stability in their day-to-day clearing and forwarding activities. Maintain good communication

In an environment like ours, where prices and fees frequently change, communication is essential. Maintain constant communication with clients and relevant government agencies at the port to stay updated on policy changes that may affect your work.

Clear communication reduces disputes and underpayment from clients. There is also a need for regular training of practitioners for better understanding of customs procedures, HS classification, and valuation rules. Mastery of these reduces mistakes, lowers costs, and speeds up clearance.

Conclusion

Nigerian clearing agents have several strategies to reduce operational costs and enhance efficiency. Digitising processes helps streamline workflows and minimise paperwork, while avoiding demurrage and storage fees prevents unnecessary expenditures. Accurate documentation is essential to eliminate errors that can lead to extra charges, and negotiating discounts with shipping lines, terminals, or haulage companies can further lower expenses. Enhancing logistics efficiency, strengthening internal controls to reduce fraud and losses, and embracing technology for fleet and cargo management all contribute to cost savings. Additionally, maintaining strong client relationships and providing clear communication improves service quality, while continuous training equips agents with up-to-date knowledge on customs procedures, HS classification, and valuation rules. By combining these practices, clearing agents can achieve smoother operations, greater financial control, and substantial savings.