Merit Ibe
Local manufacturers and exporters under the aegis of the Manufacturers Association of Nigeria Export Promotion Group (MANEG) have urged the Federal Government to re-open the Seme border and others with immediate effect as it is now having dire consequences on the economy and the country’s manufacturing sector in terms of manufactured goods exports.
They argued the closure of Seme border and others have affected their ability to meet export orders from their clients within the Economic Community of West African States (ECOWAS) region, rising debt servicing, high demurrage, huge revenue losses, rising cost of production, high unsold goods, logistics/transport challenges and many others.
President of MANEG, Chief Ede Dafinone, who made these disclosures during the association’s second annual general meeting in Lagos, noted that members of the association were already counting huge losses due to borders closure as exporters no longer meet their production outputs leading to rising cost of production. He said it was unfortunate that the Nigeria Customs Service (NCS) and security agencies took local exporters unaware with the border closure without informing MAN and the organised private sector, warning that the closure can no longer continue if the country’s manufacturing sector is to survive .
The MANEG explained that the Customs high Command only told MAN after the border closure was announced that it would be for only four weeks but now, it has continued for longer, adding that many manufacturers are feeling the pains and sufferings from the borders closure.
He raised the alarm that some exporters have defaulted in their order obligations to supply goods already paid for by foreign partners in the ECOWAS region running into billions of Naira since they cannot export these goods through the land borders. Dafinone hinted that some of his members have had to recall their loaded trucks at Seme border after waiting there for weeks on the expectation that it would be reopened by the government as promised, and that this has caused them huge losses in demurrage and logistics payments.
“At the MAN AGM some weeks ago, the Customs high powered delegation who represented the Customs Comptroller General told MAN president that the border closure will only be for a period of four weeks and I think that is probably the first time such an announcement has been made for how long the borders would be closed for business. Unfortunately, it has now been closed for, I think, six or seven weeks now and there is no respite for exporters. I raised the point that exporting companies that their sole business is to export goods but due to the border closure, unfortunately, they cannot make any sales for those period.
“Equally, there are companies that have made forward contracts and have been paid in advance for the goods’ deliveries and the companies who requested for these deliveries have also made contact to deliver finished products with those goods being imported from Nigeria. The position on the border closure is one of the most disasters for those of our members that are exporting across the borders.”
Dafinone further stated that “MANEG and MAN will continue to make representation to the government that there must be a time frame where we know that the borders can be opened for business because members are losing significant revenues in this period. They will still be servicing loans and taking on board overhead cost in this time that cannot be recovered. “You may also be getting mounting pressure from your customers for not complying with the delivery contracts order you have made. I say all these to enhance the points you have made and put it in perspective of those who are not aware so that the public, government, and agencies of government will be aware of the sufferings of the exporters through this border closure.”