Middle East Crisis Threatens Shipping Routes to Nigeria, Raises Inflation Concerns

Stakeholders in Nigeria’s maritime sector have warned that the escalating crisis in the Middle East could significantly disrupt shipping operations to West Africa, potentially diverting major shipping lines to more profitable European routes and driving up costs for importers.

Industry operators say the conflict has already begun to affect cargo movement to Nigerian ports, with rising operational costs and growing uncertainty around key global shipping corridors.

Speaking on the development, the Chairman of the Shipping Association of Nigeria, Boma Alabi, said the ongoing tensions are pushing up shipping costs due to heightened security risks and disruptions along critical maritime routes.

According to her, the closure of the Strait of Hormuz and security concerns around the Red Sea and the Suez Canal are forcing vessels to take longer routes, increasing fuel and operational expenses.

“There are increased costs as insurance and other expenses escalate due to the closure of the Strait of Hormuz and the heightened security issues around the Red Sea and the Suez Canal,” Alabi said.

She noted that shipping companies are also facing higher bunker fuel costs and additional war risk insurance premiums, which are likely to be passed on to importers.

Rising cargo costs expected

Maritime experts say the situation could soon lead to additional charges on cargo shipments into Nigeria, further increasing the cost of goods.

A former Vice President of the Association of Nigerian Licensed Customs Agents, Kayode Farinto, revealed that some shipping companies are already considering imposing War Risk Insurance surcharges on vessels operating in the region.

Farinto said the additional charges could range between $3,000 and $4,000 per container, warning that the impact would ultimately be felt by Nigerian consumers.

“These charges could be as much as $3,000 to $4,000 per container, and you know what that means for an economy like ours,” he said.

Shipping lines may favour European routes

Maritime consultant Daniel Odibe also warned that shipping companies may shift their operations toward European markets, where freight rates are typically higher and routes are less exposed to the Middle East crisis.

According to him, vessels transporting goods from Asia could bypass West African ports entirely and sail through alternative routes linking Asia directly to Europe.

“Shipping firms will naturally go to higher-paying routes if the conflict persists,” Odibe explained.

Inflation risks loom

Analysts say the combined effect of higher shipping costs, insurance premiums, and longer routes could reduce cargo throughput at Nigerian ports and push up the cost of imported goods.

Some importers have already begun reviewing their business strategies as uncertainty continues to grow in global shipping markets.

Industry stakeholders warn that if the Middle East conflict drags on, the resulting supply chain disruptions could further intensify inflationary pressures in Nigeria and across West Africa.