Story by Isaac Anumihe
Executive Secretary of Nigerian Shippers Council, Mr. Hassan Bello, has lamented that 80 per cent of cargoes coming into Nigerian ports are under-declared.
This implies that 80 per cent government’s revenues from the Nigerian ports are being frittered away through unscrupulous means into private pockets., a situation that has contributed in crippling the economy.
It is on record that Nigerian ports are burdened with high terminal charges and high demurrage-free periods when compared with other ports in the West African sub-region.
For instance, terminal charges per 20ft container as at 2012 in some West African ports were as follow: Nigeria,N62,683; Benin, N24,000 and Ghana, N9,653 while demurrage free periods among the countries in West Africa were: Nigeria, five days; Benin, 10; Ghana, seven; Cameroun, 10; Shanghai, 10. Demurrage free period refers to the number of days allowed before demurrage charge on container will commence.
The ports system is characterised by poor service delivery, high cost of doing business at the ports occasioned by unauthorised charges by service providers; multiple charges by government agencies for the inspection of cargo, arbitrary charges, high demurrage and storage cost. This also include poor and congested access roads to the ports, dilapidated state of common user facilities, high port tariff, poor supply of power, persistent congestion at the ports, poor port facilities.
Already, the Federal Government, had embarked on port reform programme that led to the concessioning of the Nigerian Sea Port Terminals to private operators. Under this arrangement, private operators took over the terminal operations in the nation’s sea port in 2006.
The concessionaires and their enterprises include: Apapa Bulk Terminal Limited (ABTL), (Apapa Terminal A &B); ENL Consortium (Apapa Terminal C&D); Greenview Development Nigeria Limited (Apapa Terminal E), APM Terminal Limited (Apapa Container Terminal); Josepdam Ports Services Limited (Tin Can Port (TCIP); Terminal Limited (TICT), (Tin Can Island Container TCIP Terminal B); Ports & Cargo Handling Services Limited (PCHS), (TCIP Terminal C), Five Star Logistics Limited (TCIP RoRo Terminal); Ports & Terminal Management Limited (PTML), (TCIP (PTML) Terminal), Ports & Terminal Operators Nigerian Limited (PTOL), (Port Harcourt Terminal A); BUA Ports &Terminals Limited, (Port Harcourt Terminal B); Intels Nigeria Limited, (Onne FOT A & FLT B); Ecomarine, (Calabar New Terminal B); Addax Logistics Nigeria Limited, (Calabar Terminal); Brawal Oil Services Limited, (Onne FLT A), West African Container Terminal (WACT) Limited, (Onne), Ecomarine (Calabar New Terminal B); Associated Marine Services Limited, (Warri Old Port Terminal B); Global Infrastructure Nigeria Limited, (Warri New Terminal A), Atlas Cement Co. Limited Jetty (FOT Onne); Julius Berger plc (Warri Terminal C); Gulftainer Limited (Koko Terminal) and Llypond Container Depot Nigeria Limited, ( Ijora Container Depot).
Rationale
According to the Federal Government, the reason for concessioning the ports was to encourage investment in the maritime sector through PPP; improve efficiency and the quality of service rendered to port users; reduce cost of doing business at Nigerian ports, generate revenue for the Federal Government and create a more friendly port for conducting international trade.
However, since the takeover of the ports by Private Terminal Operators, some modest achievements have been recorded, especially in the areas of operational efficiency on the sea side, infrastructural developments in the ports, increased safety and security of cargo.
Beside these efforts, little achievements have been made to correct the anomalies as most of the ugly signs that prompted the concessioning are still very much visible. For instance, excessive charges, inefficiency, undue delay in cargo clearance (rent-seeking), massive capital flight and leakages in revenue accruable to government, still remain unresolved.
The 48-hour clearance promised has not been effective since the committee was inaugurated in 2011.
Inaugurating the 17-member committee to monitor the implementation of the policy in Abuja, the former Minister of Finance and Co-ordinating Minister for the Economy, Dr. Ngozi Okonjo-Iweala, said that the members of the committee were volunteers from the private sector.
The monitoring committee was headed by the then Special Adviser to the President on Performance Monitoring and Evaluation (PM & E), Professor Sylvester Monye. Other members include the Chief Executive of Coscharis Group, Mr Cosmas Maduka; Chief Executive of Julius Berger Nigeria Limited, Engineer Wolfgang Goetsch; Chief Executive of Flour Mills Nigeria Limited, Chief Ukpabi; a representative of Association of Nigerian Licensed Customs Agents, Alhaji Olayiwola Shitu and a representative of Britannia U.; Mrs Uju Ifejika.
Others are a representative of Manufacturers Association of Nigeria (MAN), Mrs Emelia Akpan; the Chief Executive of Zinox Computers, Mr Leo Stan Ekeh; Chief Executive of Omatek Computers, Mrs Florence Seriki and Managing Director of Emzor Pharmaceuticals, Mrs Stella Okoli.
There were also representative of Federal Ministry of Finance, Mr Haruna Mohammed; Federal Ministry of Trade & Investment; Federal Ministry of Transport; Chief Executive of Multifreight Nigeria Limited, Mr Andy Isichie; former Director General, Bureau of Public Enterprises (BPE), Ms Bolanle Onagoruwa; a representative of SSAP-Marine, Mr Oyewole Leke and another representative of MAN, Mr John Aliya.
Causes of high port charges
Industry watchers said that for there to be an effective and efficient port system, there should be a timely delivery of cargo, billing accuracy, right equipment for cargo, tracing capability & speed. For them, Nigeria’s cargo dwell time should be reduced because while it takes Nigeria between 20 and 28 days to clear cargo, it takes Benin Republic 10 to 15 days; Ghana 12 to 14 days and Senegal 8 to 12 days.
Untill these gaps are resolved, Nigeria’s revenue will continue to fritter away.
Maritime expert hails NCS for exceeding August target
By Charles Nwaoguji
Chairman of Ogbese Marine Services, Dr Olu Ologbese, has commended Nigerian Customs Service for exceeding its revenue target in August this year.
Addressing newsmen in Lagos, Ologbese stated that while Apapa Port generated N35 billion revenue in August, Tin Can Port generated N26.2 billion in the same month.
“When one considers the difficult situation in the Maritime Sector caused by the scarcity of forex for importers and the suspension of some items from import list, the NCS deserves kudos for bringing in this impressive result”.he said, expressing happiness on the efforts of NCS to bail out the Federal Government from the present economic recession.
“This is a patriotic move which all sectors should emulate” he said, recalling that the Murtala Muhammad Airport Command has, in the past, been commended for excellent performance by the Comptroller General of Customs, Colonel Hameed Ali.
The veteran maritime expert advised the Comptroller General of Customs (CGC) not to waste time in reciprocating and compensating his men as this would encourage them to do more.
”The Comptroller General of Customs should not waste time in compensating his men by releasing their promotions and other incentives so as to make them do more. With the current problem facing the oil and gas industry where vandals of Oil/Gas in the Niger Delta region have not allowed the Federal Government to get expected revenue, it is heartening that NCS still broke even,” he said.
NSC should be encouraged because it is the stone which the builders have rejected which has now become an asset to the Federal Government,” he said.