Steve Agbota [email protected] 08033302331
Policy implementation and reform have hampered the development of Nigerian Ports in the area of trade facilitation thereby putting Nigeria out of the global map of maritime nations despite its long coastline, unique location, large oil and gas deposit, large and growing population .
Nigerian import, export, regulatory and transit procedures are burdened with lengthy, cumbersome procedures that cause some unnecessary delays, high transaction costs and increase of cargo dwell time, which make ports the most expensive across the globe based on verifiable statistical information.
Presently, Nigerian cargoes are being moved to other West African Ports due to inefficient Port system. Importers have now made neighboring West African Ports as preference hub for their cargoes due to factors mitigating against import, export and cargo clearance at the Nigerian Ports.
Thus, experts are calling on Federal Government to reform the nation’s import, export, regulatory and transit procedures. The need for this reform is
to implement an integrated set policies and procedures that is globally accepted, which will ensure effective trade facilitation by the reduction of transaction cost, cargo dwell time and ensures safety and security of cargoes at the nation’s ports.
Already, Nigeria has lost its transit status as a transit state with all transit trade relocated to neighboring West African ports, due to lengthy and cumbersome procedures that are out of date with modern procedures coupled with excessive delays. Today, there is no national guarantee scheme to secure import duty and other charges on transit goods while there is no coordination in government agencies.
Similarly, Nigerian seaports are no longer transit corridors for goods heading for landlocked countries in West Africa as Ghana, Togo, Benin, and Cote D’Ivoire provide better route for moving goods to landlocked countries of Mali, Burkina, Niger, and Chad than Nigeria, because of low overall cost.
However, Daily Sun learnt that this situation has cost Nigeria so much in terms of revenue as cargoes meant for the country are now being diverted to ports of neigbouring countries.
In a letter to President Muhammadu Buhari by the former member of Presidential Taskforce on Reform of Customs, Lucky Amewiro,urged the Nigeria government to reform its import-export, regulatory and transit procedures by implementing integrated policy and procedures that are globally accepted.
He listed the issues and challenges mitigating against import, export, regulatory and transit procedures in the country, while urging government to look at them critically including the incessant breaking down of scanners that necessitated the adoption of 100 percent physical inspection of cargo by Customs,now being blamed for hampering clearance procedures at the nation’s ports.
According to him, there is need to re-evaluate the the scanners to know their present state and update them as recommended by Smith Detection, manufacturers of the scanners.
He further stated the need to look into the main causes of scanners downtime and if possible, work out a Public Private Partnership (PPP) arrangement to maintain them by releasing part of 1 per cent Free On Board (FOB) for maintenance and repairs of such facilities.
Speaking on the implementation of single window on import-export and transit regulatory procedure, he said there must be the creation of national data sheet to capture, define, analyse, and reconcile to use one data element with common definition or coding reconcile with International standard for a single national data sheet. In line with global best practice, he said the single national data sheet will accommodate and harmonise, simplify and minimise duplication and redundancy, which enhance and facilitate trade with the signing of the Memorandum of Understanding (MoU) by all federal agencies.
On the factors hindering the process of export out of Nigeria, he stated, “simplify the process through the removal of factors associated with delays, multiplicity of product inspection and the high cost in export process
“Streamline the terminal and shipping company charges and the procedure in line with international best practice to make our products able to compete favorably in international market.”
Speaking on how to reclaim Nigeria’s siphoned cargoes from West African ports, he said the Nigeria concept of deep-sea and transshipment centre must be designed to accommodate Large E-Class Vessels/Mega ships of 8000-20000 Twenty-foot Equivalent Units (TEUs), which meets up with regional demand.
He added: “Port inefficiency that is associated with unwholesome practice manipulated delays by providers of shipping service and other government agencies that resulted to high demurrage/ rent, high transaction cost should be addressed urgently due to massive diversion and preference to other neighboring West African Ports.”
Amiwero, who said there was an urgent need to provide holding-bay at the port, and called the Nigerian Ports Authority (NPA) to use part of 7 per cent Port Development Levy (PDL), to develop port infrastructure such as holding-bay, trailer parks and port access roads.
He noted that absence of these infrastructures had increased the number of days to access and exit the port, with attendant carriage risk of continuous falling of containers due to the terrible condition of the port access roads.
Amiwero who faulted the pre-shipment inspection process of Standards Organisation of Nigeria (SON) on SONCAP, which results in duplication of local procedure, increased cost and time of doing business at the port, he said the action created bottlenecks that resulted in high demurrage and rent due to delays.
He noted that such processes should be harmonised to reduce cost and time of clearance.