Between Reforms and Reality: Global Tensions, Transition Challenges Shape Q1 Trade — Farinto

ZAINAB JUNAID

Nigerian maritime sector recorded a mixed but cautiously progressive performance in the first quarter of 2026, as ongoing government reforms began to stabilise aspects of the trade environment, even as global disruptions and implementation challenges slowed their immediate impact.

This position was expressed by former Acting National President of the Association of Nigerian Licensed Customs Agents, (ANLCA) Dr. Kayode Farinto, in a telephone interview with TransitNews Ng, on Tuesday, 14 April 2026.

Dr. Farinto said recent policy measures by the Federal Government have started to bring a level of predictability to the system, particularly in the area of foreign exchange, noting that improved stability has made it easier for importers to plan their transactions.

“The dollar is now relatively predictable. Before now, importers didn’t know what to buy or how to price their goods, but that uncertainty has reduced,” he said.

Farinto, who is also the Chief Executive Officer (CEO) of Wealthy Honey Investment Nigeria Limited, noted that adjustments to import guidelines and duty structures in recent weeks demonstrate that government is responsive to stakeholder concerns and committed to easing trade conditions.

According to him, “if not for these reforms, by now the Nigerian economy would have slipped into recession.”

However, the industry expert noted that external geopolitical developments, particularly disruptions linked to the Strait of Hormuz, have significantly affected maritime operations and slowed the expected gains from the reforms.

Strait of Hormuz refers to a narrow but extremely important waterway located between the Persian Gulf and the Gulf of Oman, connecting the Middle East’s oil-rich Gulf region to the Arabian Sea and the wider Indian Ocean. It lies between Iran (North) and Oman (south) via its Musandam Peninsula.

“Most vessels cannot come directly again. They now have to take longer routes, sometimes around Southern Africa. When you add more days to a voyage, bunker costs increase, freight charges increase, and ultimately, the prices of goods will go up,” he explained.

The former ANLCA Chief stressed that Nigeria, being heavily import-dependent, remains vulnerable to such global shocks, adding that the situation can only improve through international mediation.

“There is no local solution to this. Until there is global understanding and mediation, the disruption will continue. War cannot solve it,” he emphasised.

Despite these challenges, Dr. Farinto pointed to emerging gains in Nigeria’s export segment, noting increased international demand for Nigerian products, particularly in the energy market.

“We are beginning to export more. Over 160 tankers are already heading to lift Nigerian products. That is a positive development,” he stated.

On the domestic front, he described the rollout of the National Single Window on Friday, 27 March 2026, as a major reform initiative currently facing significant operational challenges, with cargo declaration processes experiencing delays since its introduction.

“In the last two weeks, nothing has worked. We cannot make declarations. Everything is practically at a standstill,” Farinto said.

He posited that the current situation reflects concerns he had earlier raised prior to the rollout of the system.

“I said it before the Single Window implementation that once you commence without proper planning, you will begin to see the real issues. What is happening now was foreseeable,” he stated.

While attributing the disruption to implementation gaps, Dr. Farinto highlighted key elements such as stakeholder alignment, pilot phased testing, legal framework and pre-implementation coordination, as factors not fully addressed before the rollout of the initiative.

“When you introduce a new system, there will be glitches, but not a total blockage. What we are seeing now is a complete shutdown of processes,” he stated.

The industry expert further revealed that the glitches have resulted in significant financial losses across the sector.

“As we speak, the federal government may have lost over N200 billion in the last two weeks alone, while stakeholders have recorded losses in excess of N5 billion,” Farinto disclosed.

He explained that the current situation has already affected both revenue generation and trade operations.

Dr. Farinto also affirmed that, despite stakeholders’ discussions with shipping companies over possible waivers on storage and related charges arising from the disruption, the timing of such engagements remains a concern.

“These shipping companies operate as agents locally. Any request has to be referred to their principals abroad for approval, and such approvals are not easily granted,” he said.

He stressed that such discussions would have been more effective if initiated before the rollout of the new system.

“If this had been done prior to implementation, there would have been an understanding and possible approvals in anticipation of disruptions. But now that we are already in the middle of it, it becomes difficult,” he added.

The industry expert also raised concerns over rising compliance costs during the transition, noting that some charges have increased amidst operational challenges.

Dr. Kayode Farinto said with the commencement of the National Single Window, some standard organisations took advantage of the development to raise charges and adjust their operational procedures, a situation he described as being counter to the objectives of the system.

To him, “Activities had slowed significantly in recent weeks, users were unable to upload documents or access key services.

“Import permits that used to cost about ₦300,000 have gone up to between ₦400,000 and ₦500,000, yet operators are unable to process their transactions”.

He further lamented that even after payment, operators were unable to generate access codes required for the National Single Window platform, describing the system as largely non-functional.

“Nothing is moving. Everything is stagnated now,” he said.

Meanwhile, Dr. Farinto called for a temporary suspension of the National Single Window to allow for system adjustments and improved stakeholder alignment.

He said, “The best thing for now is to suspend it and allow us to manage the existing system, that is B’Odogwu which, though not perfect, is still workable“.

He noted that its suspension would provide room to address technical and procedural gaps before full implementation resumes.

“Infact, the National Single Window should be suspended now, it cannot take us to any promise land, the best solution to is to suspend it.

Looking ahead, Dr Farinto expressed cautious optimism that government reforms will deliver long-term benefits once current challenges are properly addressed, noting that both domestic adjustments and global developments will shape the sector’s performance in the coming months.

“We are watching how things will unfold in this quarter. The reforms are necessary, but their full impact will depend on how well the system is managed and how global conditions evolve”.