CFR Apapa: what it means and what to check
By the Vanguard Verify desk · Published 2026-10-26 · Updated 2026-10-26
Short answer: "CFR Apapa" means the seller pays the sea freight to Apapa port in Lagos, Nigeria (UN/LOCODE NGAPP), but risk passes to the buyer once the goods are loaded on the vessel at the origin port. The buyer arranges insurance, and on Nigerian imports the buyer must also have a valid Form M before the goods ship.
What CFR means under Incoterms 2020
CFR (Cost and Freight) is an ICC Incoterms rule for sea and inland waterway transport only. The seller clears the goods for export, books and pays the main carriage, and delivers by placing the goods on board the vessel. The named port (Apapa) is the destination the freight is paid to. It is not the point where risk passes. CFR does not oblige the seller to insure the cargo. That is the main difference from CIF. See CFR vs CIF.
Steps to check a CFR Apapa offer
- Confirm the Incoterms version. The contract should say "CFR Apapa, Lagos, Nigeria, Incoterms 2020" or name another version on purpose.
- Name the load port. Under CFR, risk passes at the load port, so an offer with no load port leaves you unable to tell where your risk starts.
- Arrange your own cargo insurance from loading, since CFR leaves this to the buyer.
- Open your Form M first. Form M is a mandatory Nigerian import document, filed through an Authorised Dealer bank on the CBN Trade Portal. Banks state it is valid for 180 days for general merchandise.
- Check product rules. Food and regulated products may need approvals from bodies such as NAFDAC or SON before clearance.
- Verify the seller and the vessel. Confirm the seller exists in its home registry, and check the nominated ship by IMO number. See how to check a vessel IMO number.
- Agree on documents. At a minimum, a clean on-board bill of lading, a commercial invoice, a certificate of origin and an inspection certificate.
Who does what under CFR Apapa
| Item | Seller | Buyer |
|---|---|---|
| Export clearance | Yes | No |
| Sea freight to Apapa | Pays | No |
| Risk during the voyage | No | Yes, from loading |
| Marine insurance | Not required | Recommended |
| Form M, import duties, Nigerian clearance | No | Yes |
| Port and terminal charges at Apapa | As agreed in the contract | Usually the buyer |
Red flags
- The offer is "CFR Apapa" but the seller asks for payment before any vessel or load port is named.
- The seller asks you to pay "Form M fees" or "customs fees" to them. Form M is filed by the importer through its own bank.
- The ICPO or SPA mixes up terms, for example "CFR with insurance" or "CIF, buyer insures".
- Payment is asked for before you see an on-board bill of lading or a documentary credit presentation.
- The vessel name has no IMO number, or the IMO number does not match public ship registers.
Practical note
Apapa is one of Nigeria's main ports and is run under the Nigerian Ports Authority. Terminal and demurrage costs can be significant, so state in the SPA who pays them, along with laytime. If you pay by letter of credit, the bill of lading presentation terms need to match the CFR terms.
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FAQ
Who pays freight under CFR Apapa?
The seller pays the main sea freight to Apapa port, Lagos.
When does risk pass under CFR?
When the goods are on board the vessel at the load port, not on arrival at Apapa.
Does CFR include insurance?
No. Under CFR the seller has no duty to insure. The buyer should arrange cargo insurance.
Do I need Form M for a CFR Apapa import?
Yes. Form M is a mandatory Nigerian import document, filed through an Authorised Dealer bank on the CBN Trade Portal.
Vanguard Verify is run by Vanguard Trade Capital Goods Wholesalers DWC-LLC, Dubai South, Licence 14282. This answer is general information, not legal or financial advice.