By Ambrose Obioma Okehi (News Emperor)
Private bonded terminals in Nigeria are facing significant challenges, threatening the country’s trade facilitation and economic growth. The Nigeria Customs Service (NCS) has been working assiduously to address these issues, but the problems persist.
For these private investors (bonded terminal owners), the question they are steadly asking is who will bail the cat?
Who will come for their help? Who will speak for them. And another important one is can we speak with one voice again? Or is it the tale of to your tent oh Israel?
But one of their major challenges is the lack of basic facilities and infrastructure at many bonded terminals. According to a source from the Association of Bonded Terminal Operators of Nigeria, about 40% of bonded terminals lack essential infrastructure, undermining their capacity to function as true logistics hubs.
Another issue affecting the functionality or workability of private bonded terminals is the monopolistic practices of terminal operators, which are stifling the operations of inland dry ports and bonded terminals. This, many alleged political. This has led to a decline in cargo handling and a significant loss of revenue for the government.
Checks reveal that even as most of the existing terminals are operating below capacity, new ones are springing up daily across the federation, mostly in Lagos and the Western region.
The NCS has taken strategic steps to address these challenges, including shutting down non-compliant terminals and imposing stricter regulations. In February 2026, the Apapa Command of the NCS sealed three private bonded terminals for various infractions, including smuggling and importation of illicit drugs.
Sources reveal that most private bonded terminals have been turned into conduits for illicit trading and smuggling of contraband. Another source said that most owners have misunderstood the original aim of bonded terminal operation, which is meant to help mother ports in the quick movement of cargoes.
The source continued by alleging that the owners of some of these private terminals have made their terminals warehouses where goods are stored months pending when the owners feel like taking them, whereas cargoes are supposed to be cleared within 24 hours.
The challenges facing private bonded terminals in Nigeria are numerous, complex, and multifaceted. The NAGAFF 100% Compliance Team in an exclusive interview told News Emperor that group has helped by working with the NCS and the federal government to ensure trade facilitation and compliance.
Findings reveal that addressing these issues will require a collaborative effort from both the government, terminal operators, and other maritime stakeholders to ensure that Nigeria’s trade facilitation and economic growth are not hindered.
Another important aspect of ensuring trade facilitation is ensuring adequate regulatory oversight. Without this, the situation may worsen, frustrating the government policy on ease of doing business in Nigeria as well as down playing business activities in Nigeria and harming the economy.
Beyond the failure of terminals and mother ports to stem containers at most bonded terminals, limited access to funding investments is another hindrance to effective bonded terminal operation in Nigeria.
The government and supervising agencies must work round the clock to address these challenges, working together with stakeholders and operators to improve the system and revive the investments of these businessmen and women.
The Secretary of the Association of Bonded Terminal Owners of Nigeria (ABTON), Aare Asiwaju Haruna Omolajumo, informed that investors themselves (private bonded terminal owners) are not helping themselves, as they are not working in unity.
To address these challenges, the government and stakeholders must work together to:
– Improve infrastructure and facilities at bonded terminals
– Promote fair competition and transparency in cargo handling
– Strengthen regulatory oversight and enforcement
– Increase access to funding and investment for bonded terminal operators
By addressing these challenges, Nigeria can unlock the full potential of its bonded terminals and promote economic growth and development.