Lilypond Customs Calls for Improved Logistics and Shipping Capacity to Drive Export Growth

Published on 17 September 2026 at 20:45

Reported by Ariajegbe Sylvia Esezobor 

The Nigeria Customs Service has called for the development of an indigenous shipping market, improved logistics and stronger capacity to enable the country increase export flow, reduce its dependence on imports, create jobs and grow the economy. Acting Customs Area Controller of the Lilypond Export Command, Deputy Comptroller Olusola Salako, made the call on Wednesday when executives of the Maritime Correspondents' Organisation of Nigeria paid him a courtesy visit in Lagos, saying trade data from the command showed a continuous increase in export traffic, especially manufactured goods.

Salako said exports remained critical to improving the balance of trade, creating jobs, providing more business opportunities, expanding economic opportunities, strengthening the national currency and improving Nigeria's overall economic prosperity. He said Nigeria could not achieve sustainable economic growth by focusing largely on imports into the country without paying equal attention to what was being exported, adding that the country needed to increase the value and volume of products exported rather than remain heavily dependent on foreign goods. The Customs boss said the Lilypond Export Command plays an important role in addressing this trade imbalance by facilitating the movement of Nigerian products to international markets.

Salako identified logistics as one of the challenges affecting the smooth movement of exports, particularly where exporters have to compete for available space with imported cargo. According to him, the situation creates delays for exporters as they may have to wait for imported consignments to be discharged before space becomes available for their products. He said Nigeria would benefit from a system that allows locally produced goods to move more efficiently from production centres to international markets, particularly under the Africa Continental Free Trade Area agreement. He urged major businesses and exporters with the requisite licences and capacity to explore greater collaboration and direct shipping arrangements to improve the movement of Nigerian products, adding that exporters could also work together to organise shipments and develop their own logistics arrangements to help increase export volumes.

The call comes amid a sustained surge in export activity at the Lilypond command, which became the sole handler of containerised export processes for southwest ports in July 2024 following a consolidation directive by the Comptroller-General of Customs, Bashir Adewale Adeniyi. Data from the command shows that export value rose to $925.84 million in the first quarter of 2026, a 38.68 per cent increase compared with the $667.59 million recorded in the same period of 2025. Container throughput doubled within the period, with 19,014 export containers processed in Q1 2026, representing a 95.58 per cent increase over the 9,722 containers handled a year earlier. Agricultural exports grew from $523.26 million to $608.46 million, while manufactured goods recorded the most significant increase, rising from $93.48 million to $297.36 million.

In the second quarter of 2026, the command processed exports valued at $792.56 million, a 24.35 per cent increase over the $599.60 million recorded in Q2 2025, although the figure represented a decline from the $925.8 million processed in the first quarter. Container throughput expanded by 32.27 per cent, with 5,510 export containers processed compared with 3,732 in the corresponding period of 2025. Agricultural exports declined from $608.46 million in Q1 to $422.08 million in Q2, while manufactured goods increased from $297.36 million to $350.67 million. Solid mineral exports remained weak, rising slightly from $5.23 million in Q1 to $7.17 million in Q2, a decline Customs attributed to the government's policy of encouraging local processing and value addition before export. The command also reported a 36.24 per cent fall in collections from the 2.5 per cent Export Surcharge, dropping from N149.3 million in Q2 2025 to N95.2 million in Q2 2026, while fees processed under the Nigeria Export Supervision Scheme rose by 9.52 per cent from N4.86 billion to N5.38 billion.

Despite these gains, persistent logistical challenges continue to undermine efficiency at the command. The electronic call-up system, known as Eto, which regulates truck access to ports, has been identified as a major bottleneck. Export-bound containers often remain stranded at Lilypond for extended periods, not because of Customs delays, but due to congestion caused by imported goods, especially fast-track shipments that take priority. The Customs Area Controller of the command, Comptroller Samuel Ariyibi, has explained that the Eto call-up system, truck drivers' nonchalance and priority given to imports, particularly fast-track containers, have been identified as reasons for delay in export cargo movement. He said numerous containers remain stranded at Lilypond due to the inability of trucks to secure clearance under the Eto system, and that the reluctance of truck drivers to prioritise exports, leaving their trucks at the terminal until they get terminal delivery order for import containers to be freighted out before moving exports to the port, is another cause of delay.

The situation has particularly affected Apapa port, Nigeria's busiest gateway for exports, where congestion is more severe, while Tin Can port has fared better due to the existence of an export processing terminal that helps manage cargo flow. The Nigerian Export Proceeds form, a critical trade requirement, has also posed challenges, with exporters raising concerns about inefficiencies in the system. Ariyibi said Customs is actively engaging with stakeholders to ensure the system functions optimally to further improve Nigeria's export processes, and urged exporters to leverage the centralised system at Lilypond, highlighting that its design eliminates unnecessary bottlenecks.

Salako said the country's export performance should be viewed as a collective responsibility involving Customs, exporters, businesses, logistics operators and other stakeholders. He stressed the importance of communicating developments in the export sector to the wider public, saying increased awareness of export opportunities and progress could encourage more businesses to participate in international trade. He said the Customs Service remained committed to supporting initiatives that would consolidate gains in the export sector, promote innovation and strengthen collaboration among stakeholders, and called for stronger collaboration between the service, maritime stakeholders and journalists to promote Nigeria's export growth, strengthen the economy and improve the country's balance of trade. The President of MARCON said the sustained growth in the export sector could create more jobs, strengthen the economy and contribute to the stability of the naira within the next five years. For the Lilypond command, the path to sustaining its export boom will depend on whether the logistical bottlenecks that have limited its potential are addressed with the same urgency that drove its consolidation.

 

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