Headlines

Shipping costs soar as Ukraine war hits maritime trade: UNCTAD

The war in Ukraine is one of the major issues affecting international maritime transport, compounding other challenges such as the Covid-19 pandemic and port congestion, and contributing hugely to higher shipping costs, says a report by the United Nations Conference on Trade and Development (UNCTAD).

For instance, the Russian Federation and Ukraine are prominent players in agrifood markets, including animal feed.

Together, they account for 53 percent of the global trade in sunflower oil and seeds, and 27 percent in wheat.

In all, 36 countries import over 50 percent of their wheat from the Russian Federation and Ukraine alone, the report, titled ‘Maritime Trade Disrupted — The War in Ukraine and Effects on Maritime Trade Logistics’, says.

Gokaran Singh Pawar, General Manager-Sales of edible oil company Sunpure, says prices of edible oil shot up in the past few months due to multiple global factors, including the ongoing Ukraine war, resulting in supply chain disruption.

The prominent trade route along the Black Sea is yet to be operational again. The prices increased by 50 percent barely a few days after the war broke out, he said.

Not just oil, but other products have been impacted too, says the UNCTAD report.

Ukraine exported around 50 million tonnes of grain in 2021.

Before the war, estimates projected growth of 3 percent in global sea exports of grain, but this is set to shrink by 3.8 percent by end-2022.

Global shipments of fertiliser and its inputs such as potash are projected to drop by 7 percent in 2022.

Reduced grain exports from Ukraine are partly offset by increased shipments from other suppliers.

For example, Brazil is expected to increase its wheat and coarse grain exports by an impressive 37 percent in 2022.

Together, Great Britain, Northern Ireland and the EU are set to expand their exports by 8 percent during the year.

Soyabean exports are expected to increase from Argentina, Brazil and the US.

Grain prices and shipping costs have risen since 2020, but the war has exacerbated this trend and reversed a temporary decline.

Between February and May 2022, the transport cost for dry bulk goods like grains increased by nearly 60 percent.

The resulting increase in grain prices and freight rates would lead to a nearly 4 percent increase in consumer food prices globally.

Almost half of this impact is due to higher shipping costs.

The Russian Federation is also a leading oil and gas exporter. In the face of trade restrictions and logistical challenges, the cost of oil and gas has increased as they have to be sourced from other places that are far away.

Higher energy costs have led to higher marine bunker prices, thereby increasing the shipping costs for all sectors.

By the end of May 2022, the global average price of very-low-sulfur fuel oil had increased by 64 percent, as against the start of the year.

These increased costs imply higher prices for consumers and threaten to widen the poverty gap, the report said.

If global trade is to flow more smoothly, Ukrainian ports should be opened up to international shipping.

Alternative transport routes must also be pursued. And investment in transport and trade facilitation should be fostered, including support for the most vulnerable economies, the report said.

Headlines

NIWA partners ICPC to strengthen internal transparency in its operations

Gloria Odion, Maritime Reporter

The National Inland Waterways Authority (NIWA) has announced new strategies aimed at improving its operational system and enhancing collaboration with key stakeholders as part of efforts to boost efficiency and accountability.

Speaking at a post event Press Conference at NIWA Headquarters Lokoja, the Acting Managing Director, Umar Yusuf Girei, while answering questions from journalists stated that, the organization convened a two -day Executive and Anti-Corruption training with the theme “Strengthening Integrity and Revenue System in Inland Waterways Management” organized for Board Members, Management and Area Managers and also 2026 NIWA Management Retreat in Abuja.

The Acting MD noted as part of the Renewed Hope Agenda of President Bola Ahmed Tinubu,with the support Adegboyega Oyetola, Minister of Marine and Blue Economy, the Authority is focused on aligning institutional goals in ensuring better service delivery to Nigerians.

He further said, as part of its anti-corruption drive, the Management held discussions with the Independent Corrupt Practices and Other Related Offences Commission (ICPC) to explore measures for strengthening transparency within its operations.

Girei therefore, assured staff that the ongoing reforms under his watch would translate into improved service and better working conditions.

“NIWA remains committed to continuous improvement and stakeholder engagement and the reforms are expected to enhance both internal performance and public confidence”. he stated.

Headlines

Navy appoints new Maritime Guard Commander for NIMASA

Gloria Odion, Maritime Reporter

The Chief of the Naval Staff, Vice Admiral Idi Abbas, has approved the appointment of Commodore Reginald Odeodi Adoki as the Commander of the Maritime Guard Command at the Nigerian Maritime Administration and Safety Agency (NIMASA).

Commodore Adoki takes over from Commodore H.C Oriekeze who has been redeployed.

Commodore Adoki, a principal Warfare Officer specializing in communication and intelligence, brings onboard 25 years experience in the Nigerian Navy covering training, staff and operations.

As a seaman, he has commanded NNS Andoni, NNS Kyanwa and NNS Kada.

It was under his command that NNS Kada under took her maiden voyage, sailing from the country of build (the United Arab Emirates) into Nigeria.

He was commissioned into the Nigerian Navy in 2000 with a BSc in Mathematics.

He has since earned a Masters in International Law and Diplomacy from the University of Lagos and an M.Sc in Terrorism, Security and Policing at University of Leicester, England.

He is currently pursuing a Ph.D in Defence and Security Studies at the National Defence Academy (NDA).

He is a highly decorated officer with several medals for distinguished service.

Welcoming the new MGC Commander to the Agency, the Director General, Dr Dayo Mobereola, expressed confidence in Adoki’s addition to the team, emphasising that it will further strengthen the nation’s maritime security architecture given his vast experience in the industry.

The Maritime Guard Command domiciled in NIMASA was established as part of the resolutions of the Memorandum of Understanding (MoU) with the Nigerian Navy to assist NIMASA strengthen operational efficiency in Nigeria’s territorial waters, especially through enforcement of security, safety and other maritime regulations.

Customs

Customs collects N1.585 trillion from 51 compliant traders under AEO programme

Funso OLOJO, Editor

The Authorized Economic Operator (AEO), one of the trade facilitation tools introduced by the Nigeria Customs Service in 2025, has begun to yield bountiful harvests with the revenue growth of ₦362.79 billion recorded in 2025.

According to the AEO scorecard released by the Service, the facilitation tool grossed the sum of N1.585 trillion after certification, an increase revenue from N1.222 trillion before certification.

This represents the growth of N362.79 billion(29.68 per cent) for 51 AEO – certified entities as at October, 2025.

The Programme, according to the NCS, also contributed 21.77% to its total revenue collection of ₦7.281 trillion in 2025, while customs duties paid rose by 85.66% due to enhanced compliance and increased volumes of legitimate trade.

According to AEO Monitoring and Evaluation (M&E) Report, the Programme achieved an average compliance rate of 85.45 per cent with the highest at 100 per cent and the lowest at 60 per cent.

“The evaluation applied rigorous methodologies to ensure objectivity, transparency, and alignment with the World Customs Organisation (WCO) SAFE Framework of Standards and the provisions of the Nigeria Customs Service Act, 2023.

“In the area of trade facilitation, AEO participation reduced average cargo clearance time from 168 hours to 41 hours, representing a 75.60% time saving.

“Company operating costs declined by 57.2 per cent while demurrage payments dropped by 90 per cent, limiting capital flight to foreign-owned port service providers and strengthening foreign exchange retention.

” Overall trade efficiency improved by 77.11 per through digitalisation, simplified procedures, and targeted risk management” the Customs declared in the AEO scorecard.

However, the Service singled out with Eight companies for commendation due to their integrity and compliance under the programme.

The companies include Coleman Technical Industries Limited, WACOT Rice Limited, ROMSON Oil Field Services Ltd, WACOT Limited, Chi Farms Ltd, CORMART Nigeria Ltd, PZ Cussons Nigeria Plc, Nigerian Bottling Company Limited and MTN Nigeria Communications Plc.

The Service lauded them for a cumulative voluntary remittance of over a billion naira into the Federation Account following their self-initiated transaction review and disclosure.

“These actions reflect the strengthening of post-clearance audit mechanisms and a growing culture of voluntary compliance within the trading community.

Nevertheless, the Service suspended a firm under the programme for its non- compliance and display of lack of integrity.

The suspended firm engaged in false declaration of consignments contrary to programme obligations.

“Consequently, the Comptroller-General of Customs, Bashir Adewale Adeniyi, directed the immediate suspension of the company’s AEO status in accordance with the AEO Guidelines, the WCO SAFE Framework of Standards, and Section 112 of the Nigeria Customs Service Act, 2023.

The NCS reiterated that the AEO Programme is founded on trust, transparency, and continuous compliance.

“While compliant operators will continue to benefit from expedited clearance and reduced inspection, appropriate sanctions will be applied where violations are established.

“The Service remains resolute in safeguarding national revenue, facilitating legitimate trade, and preserving the integrity and global credibility of Nigeria’s AEO framework” the NCS concluded in the report.