Category: Maritime

Last week, agencies under the Federal Ministry of Transportation agreed to digitalise their internal processes to actualise the National Single Window (NSW) in the transportation sector. In this report, OLUWAKEMI DAUDA looks at the impediments facing the initiative.

The meeting by heads of the agencies of Federal Ministry of Transportation achieved a milestone: digitalisation of their organisations to actulise the National Single Window (NSW) for trade facilitation. At the fourth Heads of Maritime Agencies meeting in Lagos, the Registrar of Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), Sam Nwakohu, stressed the need for the automation of their organisation’s processes.

Other stakeholders were unanimous that one step that must be taken to quicken cargo clearance and realise the government’s diversification agenda is the adoption of the NSW system. They agreed that the NSW is a laudable initiative which Nigeria should embrace.

The Single Window

A single window, involved parties in an international trade, which use the latest information communications technology (ICT) techniques, international data and messaging standards with simplified, harmonised and remodelled information systems for data exchange to replace traditional paper-based information. Its benefits are immense, because it boosts the competitive advantage of our ports and its traders on the international markets, and increase the government’s revenue, boost foreign direct investment (FDI), introduce simpler, and faster clearance, and release processes, an expert said. However, the Federal Government needs to expedite NSW’s execution.

Why scheme is delayed

Former President, Association of Nigerian Licensed Customs Agents (ANCLA) Prince Olayiwola Shittu said the execution of the scheme was being hampered by Ministries, Departments and Agencies (MDAs) such as the Nigerian Ports Authority (‘NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Shippers Council (NSC), Nigeria Customs Service (NCS), various terminal operators, and shipping firms trying to align their e-platforms with the NSW platform.

He however, expressed optimism for the delivery of the promise by the government, moreso, when new people are expected to come into power next year.

Commitment from govt, stakeholders

Nwakohu, who chaired the meeting, said the Chief Executive Officers (CEOs) of the various agencies agreed on timelines for achieving full automation of their organisation’s internal processes. “We have agreed that  agencies under the Ministry of Transportation should, as a matter of priority, attain full automation. This process will be well coordinated and we also gave ourselves timelines to achieve this,” he said.

The Director-General, NIMASA, Dr. Bashir Jamoh, added that this was no problem as his organisation’s automation had reached over 80 per cent. “In line with the Federal Government’s Executive Order on Ease of Doing Business, we are committed to full automation to attain reduction of human interface in the majority of our transactions with our stakeholders and this is in our bid to ensure transparency and professionalism which the sector requires to grow,’’ he added.

Also, a university don, Mr Dipo Alaka, said the implementation of a NSW involved stakeholders and requires long-term commitment from the government and business. The platform, Alaka added, must fit the environment.

An importer, Mr Bamise Soremekun, said in each phase of port development, the Federal Government should look at the prevailing global trends and plan for the next 50 years and make adjustments to its plans along the way.

What CBN has done

Findings have shown that despite that the Central Bank of Nigeria (CBN) has established a foreign exchange (Forex) window for investors and exporters to boost liquidity in the market and ensure timely execution and settlement of eligible transactions, the country is still faced with  import and export procedures challenges. This is what the stakeholders said the NSW would address.

 FIRS and tax payments

True, tax payments and remittances have also been simplified through the e-filing by the Federal Inland Revenue System (FIRS). Importers and exporters are not left out with the documentation. No doubt, the agencies need the single window platform to deliver quality service, experts have said.

“Promoting efficiency is a major challenge confronting many African ports. A global bench-marking study by SAP found that ports that leverage technology to drive productivity improvements enjoy 36 per cent higher operating margins than similar peers and that is why the Federal Government is working to institute a single window operation in our ports. Port automation and digital solutions are potential game-changers, not only for cargo throughput but also profitability,” Shittu said.

‘Nigeria only country without Single in Africa’

Despite promises by the Federal Government, Nigeria remains the only country without a single window platform in Africa in an age where information technology drives businesses.

Stakeholders urged the President Muhammadu Buhari Administration to boost its diversification agenda.Some importers, in separate interviews, agreed that the Single Window system is vital to the sector’s growth. An importer, Jide Egbeyemi, said: “The implementation of a Single Window system enables international (cross-border) traders to submit regulatory documents at a single location and/or single entity. Such documents are typically customs declarations, applications for import/export permits, and other supporting documents, such as certificates of origin and trading invoices.

Plan to use one per cent Comprehensive Import Supervision Scheme

Former Minister of Transportation,  Rotimi Amaechi last year promised to set up an NSW platform to be managed by the Nigerian Ports Authority (NPA), but he didn’t. Egbeyemi lamented that lack of the NSW has resulted in Nigerian-bound vessels being diverted to Benin Republic, Ghana and other neighbouring ports because of the intractable traffic in Apapa and delays during cargo clearance at the ports. The importer recommended that the policy on single window on the clearing of goods should be implemented without delay to discourage physical examination of cargo by men and officers of the Nigeria Customs Service (NCS).

‘Non-implementation of NSW platform costs Nigeria N1.08 trillion revenue yearly’

A senior official of the ministry, who craved anonymity, said the Federal Government would generate additional $800 million yearly from the ports and border stations if government agencies key into the SW initiative.

“As of 2017, Ghana had commenced the registration of vehicles doing business at its port in preparation for full automation of the processes this year. Last year, the port welcomed a $1.5 billion fully-automated terminal built by the APM Terminals, Bolloré Africa Logistics, Meridian Port Services and the Ghana Ports and Harbours Authority,” Atanda said, adding that the expanded port could accommodate the world’s largest container ships in their breakwater and access channel. Like Ghana, other ports in Africa have automated their processes, making clearing faster and easier.

He said if the Federal Government could put the NSW in place, Nigerians who patronise other African ports would return to the nation’s ports.

It would be recalled that during the opening ceremony of the 2018 Lagos International Trade Fair,  Buhari, represented by his deputy, Prof Yemi Osinbajo, announced plans to establish a NSW to cut trade times and costs by making information flows more efficient and streamlining trade procedures and address other issues affecting the transaction cycle in bringing in goods, clearing and exporting it through the ports.

Jamoh said Buhari has the determination to make the ports, the hub of maritime in the West and Central Africa through the introduction of a national single window, provision of maritime security, improvement in port infrastructure, formulation and implementation of other laudable programmes.

He said the geographical location of Nigeria would aid its transformation to a regional maritime hub after the introduction of the new platform to boost efficiency and competitiveness.

He added that the Buhari administration has a long-term, strategic port planning system that would ensure that the seaports provide adequate capacity to meet the demands of key shipping lines and their alliance partners in sizeable blocks of volume.

The Nigerian Ports Authority (NPA) Managing Director, Mr Bello Koko, told reporters that the agencies, terminal operators and stakeholders must key into the government’s initiative of promoting the SW platform to meet the 48-hour cargo clearance deadline.

The NPA, he said, has embarked on the establishment of a SW through an intense automation and introduction of Standard Operating Procedures (SOPs).

“There is no doubt that the adoption of a national SW will strengthen the port industry by boosting efficiency and reduce cost and time, which are the major objectives of port concession agreement signed by private terminal operators,” she said, adding that the SW has been used by many countries to facilitate trade at ports. The adoption of the SW, according to him, will make local ports competitive in the international trade network and boost trade facilitation programmes of the Federal |Government. “It will also reduce corruption and entrench transparency and accountability in the port operations,” she said.

Importers and exporters react

An importer, Mr Yusuf Aladejobi, said the NSW woulf increase compliance level and see to efficient and productive use of resources, facilitate enhanced fee, duties and penalties’ collection. “It will institutionalise more comprehensive, streamlined and automated business compliance to government legislative and regulatory requirements. It will also enhance risk analysis, management and improve security. There will be reduction in corruption and illegal trade activities, enhanced transparency and accountability. It will equally bring more trader-friendly environment, leading to increased foreign investment, integration and timely flow of information between government agencies and improved business intelligence,”  he said.

Aladejobi said for importers and exporters, there would be cost reductions through minimised paper work, time spent will reduce and eliminate delays. “There will be more predictable, reliable and authoritative decisions, just as there will be faster goods clearance, exceptional handling and dispute resolution, leading to reduced inventory holding costs. Also, there will be predictable and reliable consignment clearance and availability of advanced goods release information and reduction in face-to-face meetings, greater transparency and reduced opportunities for rent seeking and corruption.”

An exporter,  Mr Chris Christopher, said the NSW is laudable. “We are aware that the management of the NPA is not happy over the past failure of 48-hour cargo clearance policy. Apart from the delays in cargo clearance, which disrupts the production schedules of manufacturers as raw materials are not delivered in time to their factories, they affect their revenue and are responsible for high level of corruption at the ports as importers struggle to clear their cargoes under harsh condition. This, again, exacerbates inflation as goods are not quickly cleared from the ports to meet relevant needs in the economy and that is why the need for a national single window is imperative.’’  he added.

In this report, OLUWAKEMI DAUDA looks at the implications of rising cases of smuggling marijuana and other prohibited drugs on the country amid the high rate of  insecurity.

In the last one year, the Nigeria Customs Service (NSC) Western Marine Command (WMC) has seized about N2 billion worth of marijuana on the nation’s territorial waters and handed the prohibited items to the National Drug Law Enforcement Agency (NDLEA) in Lagos.

Last week, the Command handed over loads of cannabis sativa worth N186 million seized from smugglers on the Southwestern waterways and creeks.

WMC Area Comptroller Abubakar Alhaji Umar handed over 32 sacks of the prohibited and dangerous substance to the Marine Commander of NDLEA Isaac Uzah, at the NCS Marine office at Coconut, Apapa, Lagos.

Umar said the handover was to further strengthen the synergy between the NCS and the agency to boost national security.

What is marijuana?

It could be described as a dried flower and leaves from Indian Hemp plant. Its names are Astra turf, ganja, dope, grass, hemp, texas tea, and weeds. Marijuana leaves are green, brown or gray.

Consumption

Its consumption varies. While some chew its leaves, or smoke it, others cook its leaves in stew or soup. Yet, there are others who soak it in water and drink. No matter its use, it is dangerous to health.

How safe is Marijuana?

Although science has proved that marijuana may help reduce symptoms of certain medical conditions, it certainly has many harmful effects depending on how often it is used. There is evidence that regular use of marijuana increases the risk of heart, lung and mental health problems. Less is known about the health issues that might be caused by casual or frequent marijuana use. Marijuana is a natural product that doesn’t have to be tested in a laboratory.

Marijuana has more than 400 chemicals

Science has proved that marijuana plants contain more than 400 chemicals, including about 60 that can interact with the body’s nervous system. Smokers of the substance might inhale more than 2000 chemicals. Many of those chemicals are similar to the one in cigarette smoke. Marijuana can also be contaminated with mold, insecticides or other chemicals and health effects of many of these chemicals are not known. Smoking marijuana is, therefore, injurious to health in many ways

Harmful effects of Marijuana

Effects of marijuana include rapid heartbeat, anxiety, lack of physical co-ordination often followed by depression and sleeplessness, while some users suffer panic attack. Scientific studies had also proved that the active ingredients in cannabis THC (Tetra Hydro Cannabbiro) remains in the body longer than expected. Marijuana smokers could suffer up to between 50 per cent and 70 per cent more of cancer substances than tobacco smokers. One major research reported that a single cannabis dose could cause as much damage to lungs as up to regular cigarettes. It has also been proved scientifically that long time cannabis smokers often suffer from bronchitis and inflammation of the respirating track. The drug can easily affect physical health and cause brain abnormalities.

This is also backed up by earlier research on the long-term effect of its uses, which indicates changes in the brain similar to those caused by abuse of other major drugs. Several studies have shown a connection between continued usage and problems which change the structure of sperm cells, deforming them. Even, a smaller amount of marijuana can cause temporal sterility in men, and can also upset woman menstrual circle.

In a nutshell, the effects of using marijuana could include a happy, relaxed, or “high” feeling; slower reactions; dizziness trouble thinking, learning and remembering; confusing; anxiety; panic or paranoia; fast heart rate, increased blood pressure, less interest in normal activities; hunger; dry mouth; red eyes; psychosis, which is seeing or hearing things that are not real.

These effects last about three hours after marijuana is smoked or inhalled. When the substance is eaten, the effects take longer and may last about 10 hours in the system.

 Social implications

Long-term marijuana use can, in some cases, lead to addiction, which means a person can’t control or stop marijuana use even though it interferes with daily life.

According to findings, about nine per cent of people who use marijuana between 13 and 25 will become addicted. And half of the people who use marijuana daily become addicted.

Marijuana users make up 17 per cent of the people that enter publicity funded rehabilitation programs.

Coming down to Nigeria, addiction suffered through marijuana consumption by youths had led to serious social implication on the mental and physical development of our young adults. Drug abuse, among our youths, including smoking of marijuana had brought untold hardship on our social system. This development had led to escalation of social vices among our youths such as school drop outs, cultism, prostitution, armed robbery, kidnapping, mental derailment, political thuggery e t c, which had culminated in the complete misuse of youths, and by implication affecting social and economic stability of youths.

A case on our hands is the Boko Haram menace, which has been drawing its membership from a pool of uneducated and unemployed youths or school drop outs or products of drug abuse from system. There is a saying that idle hands is the devil workshop meaning that youths who become idle through drug abuse and social derailment are available hands for evil perpetration

What a stakeholder says

A maritime analyst, Mr Segun Ovunsanu said: “In 2020, the command seized over 10 tonnes of cannabis sativa (marijuana) valued at over N1billion. And in the first quarter of last year, the Western Marine Command also intercepted Cannabis sativa with a Duty Paid Value (DPV) of N694, 575, 000.”

The WMC, Ogunsanu said, “handed the banned substance to the Nigeria Drug Law Enforcement Agency (NDLEA).We are not surprised that here we are and the command is showcasing another feat of arrest of marijuana by its officers and men. I am proud of the dedication and vigilance of our Customs Service that prevented this illegal contraband from hitting the streets of our communities, mostly, now that the 2023 general elections are  approaching

“Coming down to Nigeria, addiction suffered through marijuana consumption by the youths had led to serious social implication on the mental and physical development of our young adults. Drug abuse among our youths, including smoking of marijuana had brought untold hardship on our social system,” Ogunsanu said.

Also, a senior official of the command who craved anonymity said: “Last year, our operatives of the Coastal and Harbour Patrol (Bar-Beach), on credible intelligence along the Ibeche Beach on the high sea, arrested two wooden boats laden with sacks suspected to contain marijuana (HS Code 0602.90 of Common External Tariff (CET).

“This is with six suspects, as empowered by Customs and Excise Management Act, Laws of the Federation of Nigeria, 2004, as amended.

“The goods with the suspects were brought to WMC. Upon physical counting, it was found to be 147 sacks of marijuana with an average of 45kg per sack, giving an estimated total of 6,615kg with a DPV of N694, 575, 000.’’

The senior official said WMC had a collaboration with the NDLEA, adding that NCS handed over the marijuana and the suspects to NDLEA in the interest of national security.

He said the United Nation Office on Drugs and Crime (UNODC) headed by Siji Song had on March 16, last year, in fulfillment of its promise of installing Teleconferencing CISCO WEBEX equipment, handed over the equipment to the command.

He said the equipment was aiding the operations of the command and assist security agencies in fighting piracy in the maritime industry.

“Making society free of drugs abuse is a collective one; therefore, all hands should be on deck to achieve the aim. You can imagine the havoc the marijuana of this magnitude could have wreaked on our society if this seizure has not been made,’’ he said.

He warned unscrupulous elements to desist from smuggling and look for a legitimate means of livelihood.

“No amount of distraction will deter us from enforcing the Federal Government’s fiscal policies; we will remain resolute no matter whose ox is gored.

“I urge the NDLEA to invite us during the destruction of this marijuana and a copy of certificate of destruction issued to the NCS for record-keeping,” he said.

Findings revealed that the cannabis intercepted was the type cultivated in  Ghana, which it was gathered, is more potent than the one grown in the country. He said the seizure saved Nigeria and its image. “We want the media to help to sensitise the public on the dangers of what we are trying to stop in our society,” the officer urged.

Hand over by Umar

Addressing reporters at Western Marine Command last week, Umar said the Duty Paid Value (DPV) of the items seized at Oko-Aja beach was NN168 million. Umar said the NCS was happy to hand over the 1, 437 kg of marijuana to the NDLEA.

His words: “Since my assumption of duty in this Command, I have together with my officers/men ensured that no stone is left unturned at achieving my mandate and that of the Command, in nipping the activities of smugglers in the bud along the Southwestern Waterways and creeks, which is the jurisdiction of the Command.

”On Wednesday, March 30, 2022 at about 0330hours, the operatives of the Command while on credible intelligence intercepted a wooden boat at Oko-Aja Beach containing sacks suspected to be cannabis sativa.

“The goods were brought to the WMC; upon physical examination and counting, it was found to be 32 sacks i.e 2,520 pieces of Cannabis Sativa weighing a total of 1,437Kg. This is a case of absolute prohibition and contravenes Section 24(b) of CEMA Cap C452004 as amended.’’

NDLEA praises Customs

Responding, the NDLEA chief, Uzah commended the Customs for supporting them in stopping the influx of drugs into the country.  Receiving the illicit drugs, Uzah blamed the spike in crime on youths’ indulgence in drugs, urging patriotic Nigerians to assist the agency in intelligence gathering. He expressed worry over the high number of cannabis seized by the command and said:”the seizure is very important because almost every family is affected. We are happy over the attempt by Customs to make the country free from the hazard of drugs and abuse.

“I shouldn’t be worried alone; everyone should because it is not a good thing at all because of  the insecurity.

Uzah advised Lagosians to pass information about illicit drugs to the NDLEA when they sight cannabis smugglers or smokers to secure the state and the country.

Law on Marijuana

The Federal Government prohibits the production, sale, and possession of marijuana (cannabis) by classifying it as one of the prohibited items.

Despite the prohibition of marijuana, the country has one of the highest use rates, with many in the villages and urban centres reporting that they had consumed it at some point through their closeness to its smokers.

Investigation has shown that almost 36 million Americans used marijuana in 2016, and the marijuana market is valued at $56.1 billion.

Information collection

Intelligence gathering from the grassroots members, especially professionals and grassroots men and women, becomes essential as the country goes to election.

Information collection from the grassroots and dissemination to the Police and other security agencies throughout the country is imperative for law-abiding citizens.

Although DSS and Police are mandated by the constitution to gather information for crime prevention and detection, but, unfortunately, these agencies do not have enough grassroots link to achieve much and the financial requirement is much for the government to fund.

But the leaders of every community have the means through the grassroots to assist security agencies in combating crime with wider help from tradesmen, artisans and reporters.

Conclusion

It is, therefore, imperative that all hands must be on deck to confront the menace of drug abuse and its effect on our social system. There are government agencies and institutions which can be mobilised into partnership to address the situation.

In Nigeria, institutions like the NDLEA and NAFDAC along with other government law enforcement agencies are being wooed to align with the people to embark on aggressive enlightenment to correct the abnormality.

There are government regulatory bodies such as the police, Customs, immigration, border security officials along the waterways, seaports, and land borders to monitor illegal movement of such harmful drugs in and out of our country. Time has come for all hands to be on deck to fight the battle of marijuana stoppage through our various agencies and communities across the country.

Customs seeks assistance

Umar has urged Nigerians to help the service take a stand against the criminals smuggling marijuana and other dangerous drugs “by reporting their suspicious activity to us and the law enforcement agents.”

Last weekend, the Managing Director, Nigerian Ports Authority (NPA), Mr. Mohammed Bello-Koko, unveiled plans to reduce the cost of shipping with the deployment of more digital technology and critical facilities at seaports. OLUWAKEMI DAUDA writes on why the Federal Government and stakeholders should support the NPA in its endeavour to promote quality service delivery.

For long, stakeholders have complained of the high cost of doing business in the shipping industry. Now the Nigerian Ports Authority (NPA) has come to their rescue. Last week, it rolled out plans to tackle the issue by deploying more digital technologies and critical facilities at the seaports.

NPA Managing Director Mohammed Bello-Koko, during a media parley in Lagos, last weekend, said the authority was set to deploy the port community system where every stakeholder is locked into one system for operations.

What is digitalisation?

Digital technologies help to change a business model and provide new revenue and value-producing opportunities. For ports to cope with changes in the global economy, meet growing demand and increase in throughput of cargo. The ports and their stakeholders will have to strike new agreements on collaboration and standardisation on big data, which, in turn, will make port computerisation easier to achieve.

Digitalisation, in container handling, is considered a matter of the logistic chain, cloud and big data. While these are, undoubtedly, key aspects in digitalisation of container shipping, the system also transforms the processes and workers’roles within terminals, which has an impact on terminals’productivity.

Digitalisation of quay impacts positively on processes and roles and contributes to increased productivity.

Bello-Koko said the port community system would not affect the e-customs, adding that it would enhance trade facilitation and ease shipping processes.

Bello-Koko also said the NPA was working hard to deploy Vessel Traffic Services (VTS) to monitor ship movements.

VTS are shore-side systems which range from the provision of simple information messages to ships, such as position of other traffic or meteorological hazard warnings, to extensive management of traffic within a port or waterway.

According to him, the NPA is partnering the Nigerian Liquefied Natural Gas (NLNG), which is expected to help with the survey and deployment of the facility.

“We should be able to have visibility without seeing the ship. We are blocking leakages and ensuring removal of manual process at the seaports. I will love to see our port fully automated. Automation is the backbone of our port and we must achieve this and implement it in the right manner. That is what the port community system is about,” he said.

Too many people still go into the seaports in this era of digitalisation. This is the puzzle the NPA chief, wants the stakeholders, operators, security, government agencies and port users to solve.

Bello-Koko said the port business could be conducted with digitalisation.

A maritime lawyer, Mr Muhammed Oluwaseyi, noted that a non-contact port is the solution to many problems in the system. He listed these as delays, which lead to demurrage, diversion of money, corruption and revenue leakages.

Oluwaseyi kicked against a situation where many people would converge on the seaports to transact businesses that could be done from the comfort of their homes and offices. Human contact, in this era of global digitalisation, Oluwaseyi said, is dangerous because it is non-efficient, causes delays and breeds corruption at the ports.

“Most of the ports in the world are digitised. Nigeria cannot be an exception. We cannot have a multitude of people going into the ports every day; human contact in the ports is very dangerous. It is anti-efficiency and once there is human contact, there will be corruption and then delay

“Some people don’t even have any business at the port, but you see them there.What are they doing?

“Government agencies should be working with shipping companies and terminal operators to ensure they meet the deadline they set for the first quarter of this year, but we saw it was not feasible to attain 90 per cent digitilisation. Although digitilisation of the ports is a process in the making, we want this to happen as quickly as possible.

Oluwaseyi added that digitilisation would make our ports more competitive, noting that the country had competitors in West and Central Africa sub-regions.

 NPA needs to join digital revolution

The time has come for the ports to join the digital revolution. Digitalisation opens the door for carriers to strengthen their direct relationships with end customers, further reducing their costs (vessel operation, and customer service), and pursue new revenue streams beyond traditional port services.

NPA, stakeholders said, needs to ensure that terminal operators and other government agencies at port, apply digital technologies toward enhancing their commercial and operational activities. Box tracking, empty-container repositioning, document management, network design, and pricing are among the activities that must be digitalised.

“Although the rewards of a digital transformation can be significant, so are the challenges to making it happen.To succeed, NPA must adopt a structured approach to defining a digital vision and integrating new technologies, capabilities, and mindsets into their traditional way of working. It is not too late to get started. The industry is still in the early stages of digitalisation, and most ports are yet to achieve significant progress.

“Ports Authority that approaches a digital transformation with the right ambition, resources, and scale can leap to the forefront of adoption. With what is on ground, eight months can be used to achieve a step change in their digital capabilities that strengthens their competitive advantage …” said an importer, Felix Sunday

 Threat from digital attackers

Even as the economic challenges of the new normal persist, carriers face an increasing threat from digital attackers. A variety of players—including both traditional logistics players and new entrants—are adopting digital technology to provide seamless, end-to-end services. If these companies’ business models succeed, carriers run the risk of losing direct contact with some of their most profitable customers—primarily small and midsize freight forwarders and beneficial cargo owners (known as BCOs). In this scenario, the carrier’s role could be reduced to providing commoditised ocean freight services.

One of the strongest threats is from players, Sunday said, are adopting digital technology as the basis for an asset-less business model that lets them compete with a much lower cost base. Recognising the opportunity, e-commerce giant Amazon has obtained a license to operate as an assetless cargo forwarder between China and the US. Startups are also gaining traction. For example, Flexport is a technology-based freight forwarder that, as of October 2017, had attracted more than $200 million in venture capital investment. Flexport is not alone in attracting venture capital. In the past six years, more than $3.3 billion has been invested in digital startups in the shipping and logistics sector.

Fortunately, carriers have many opportunities to apply digital technology—not only to maintain their direct customer relationships with acceptable costs but also to improve their operations and grow their businesses. Seven digital trends have emerged, especially in the shipping industry. These trends are contributing to performance improvements across the full scope of carriers’ operations.

 Obstacles

So far, most carriers have failed to take a systematic approach to digital adoption. Manual intervention is still required for operations such as trimming during voyage, restowage, and documentation management. Network optimisation, empty-container repositioning, cargo routing, forecasting, and pricing are among the core processes that can be digitalised. However, most carriers still handle them in the traditional way, without systematically leveraging the power of advanced analytics and artificial intelligence (AI). For example, some carriers that have collected impressive volumes of data lack the skills or agile processes to generate insight and improvements.

 Expectations

Digitalisation is expected to cut the cost of doing business, corruption and sanitise the port environment. Before now, NPA, Nigerian Shippers’ Council (NSC), Technical Unit on Governance and Anti-Corruption Reform (TUGAR), United Nations Development Programme (UNDP), Independent Corrupt Practices and other Related Offences Commission (ICPC), Bureau of Public Procurement (BPP) and the Maritime Anti-Corruption Network (MACN) had assessed maritime operations to proffer solutions to the highly corrupt business environment.

Standard Operating Procedures

The quest for digitalisation has led to the introduction of Standard Operating Procedures (SOPs) and a Grievance Reporting Mechanism (GRM) to uphold the standards set by the SOPs and a web portal to administer the complaint collection and communication under the management and coordination of NSC as a one-stop shop to resolve grievances and to increase the levels of accountability of port officials in their adherence to SOPs.

The maritime lawyer said the Federal Government and private sector investors were losing a total of $10.1 billion yearly to corruption due to lack of digitilisation at the ports. He urged the government to support the Council to deal with the menace.

Corruption at ports

A senior official of the Federal Ministry of Transport, who craved anonymity, said one of the agencies under it, recovered $14,000 bribes from officials saddled with boarding and inspection of vessels sometimes ago. The official said bribes being collected from seafarers and captains of ships had become an international embarrassment to the Federal Government and the country at large.

He said the seaports have attained 80 per cent digitalisation. He said it was not easy to achieve this, adding that they had the scorecards of every terminal and shipping firm that led to the tremendous improvement.

He said the 80 per cent digitalisation was lower than 90 per cent targeted by the Shippers Council in the first quarter of last year. According to him, the council targeted 90 per cent digitalisation in the first quarter of the year, unfortunately, it did not achieve it although it was still pursuing it in earnest.

“Most of the ports in the world are digitilised. Nigeria cannot be an exception. We cannot have a multitude of people going into the ports every day. Human contact at the ports is very dangerous. It is anti-efficiency and once there is human contact, there will be corruption and, then, delay. Some people don’t even have any business to go to the port, but you see them there, what are they doing?

“NPA needs to work with shipping companies and terminal operators to ensure we make the improvement we want in the port, because  it may not be feasible to attain 90 per cent digitalisation. What the NPA needs to ensure on the average 85 and 90 per cent, but digitisation of the ports is a process in the making. We want this to happen as quickly as possible,” he said.

The level of digitalisation

On the level of digitalisation of shipping firms, a clearing agent, Mr Kayode Ogunsanu said, Grimaldi had over 88 per cent; Ocean Network Express 80 per cent, and CMA CGM 75 per cent.

He added that some of those that scored 35 per cent, had improved with the guidance of the regulatory agencies

For seaport terminals, Ogunsanu said PTML had 94 per cent, and in Port Harcourt, Intels, BUA and Wact had over 70 per cent digitalisation each.

“Where there would  problems is on reforms and claims processes, which is mostly manual, there are some that scored 60 per cent.

“Also, the second phase is the integration of systems for anybody can be online, but there is a need to integrate with the banks, for example, and even the Nigeria Customs Services’’  he said.

Promotes cleanliness in the port environment

The Acting President, Association of Nigerian Licensed Customs Agents (ANCLA) Dr Kayode Farito said digitalisation would promote cleanliness in the port environment as well as tackle illegal trading.

“NPA needs to clear the whole port environment, and work with other agencies and the Ports and Offences Act should be cited to clear the place.

“You cannot sell food or diesel at the port.The port is a special place that requires the speedy execution of transactions. We cannot have people selling engine oil,” he said. He said for Nigeria to define its role in the transport sector, which would be very significant, there was the need to accommodate bigger ships in our ports and that was the role the Lekki Deep Seaport would play.

Determined to revive the port in Delta State, the Nigerian Ports Authority (NPA), has awarded contract for remedial dredging of  Escravos channel.

Managing Director, NPA, Mohammed Bello-Koko, who disclosed this in  Warri, said the dredging of the channel will help to expand the channel and enable bigger vessels to visit the port in Delta State.

He said the dredging had started and is about halfway done, adding that it would enable port in Delta State to have a better draft, receive bigger vessels and record less incidences of vessels running aground when completed.

“We all know that the breakwaters collapsed about 10 years ago, and there has been high siltation resulting in reduction of the draft from seven meters to three meters in some places,” Bello-Koko said.

According to him, the NPA has also started the mapping and charting of the Escravos channel starting from the fairway buoy down to Koko Port,  which has not been done for over a decade or more.

“The essence is to enable us to be able to know the draft along the way and also ensure that the navigational aids are properly placed.

‘’This is because there are some decisions that can only be taken after knowing that the channel has been properly mapped and surveyed,” he said.

Bello-Koko further said the efforts put together mean that the NPA is beginning to pay attention to the ports outside Lagos.

“We have a special interest in ensuring that Warri and other ports are more active. This is why we have been holding stakeholders meetings and we are going to Port Harcourt for another one. This enables us to engage with the importers and exporters for them to know that these ports are available for use. We will deploy more marine equipment and ensure that the signals are also working to ensure safe navigation of vessels, ” he added.

This, the NPA boss said, will bring joy to the people especially those that are into the business of importation, who have been yearning for the decongestion of the Lagos port and the bringing of business to the     Warri port.

Meanwhile, the Olu of Warri Kingdom, Ogiame Atuwatse III, who spoke during the visit of the NPA boss and his management team to the Olu’s palace to seek royal support in reviving the Warri Port, expressed     satisfaction on the visit of the NPA new management to Warri Port as the first port of call after his confirmation as the managing director.

He said the eastern ports need to be opened up after several pushes by different governments in the past, adding that the recent efforts will yield positive results for the benefit of the importing community.

While saying that the Niger-Delta people want the port to work, the Olu of Warri said that port generally drives the economy of the cities where they are located.

He however, said that the NPA could always come to the royal family for support to achieve the goal of opening up Warri Port for business.

Last week, the Minister of Information and Culture, Alhaji Lai Muhammed, visited the Lekki Deep Seaport to examine the prospects of the multibillion-dollar project to the economy when it becomes operational before the end of this year. OLUWAKEMI DAUDA was there.

Last week, the Minister of Information and Culture, Alhaji Lai Muhammed and other top officials of the Ministry of Transportation visited the Lekki Deep Seaport to examine the benefits of the multibillion-dollar investment to the economy.

The minister said the port would generate revenue of $201 billion for the Federal and Lagos State governments through taxes, duties and royalties during the 50-year concession period.The port, he added, would create over 170, 000 jobs.

“With Lekki Port scheduled to commence commercial operation in the last quarter of the year, it would make it possible for Nigeria to regain the maritime business that was lost to ports in Togo, Cote d’Ivoire and Ghana.

“It is also a big boost to Nigeria in its quest to take advantage of the implementation of the African Continental Free Trade Agreement (AfCFTA).

“A major advantage we have to leverage is transshipment. With this port, Nigeria would become a transshipment hub and the revenue we are currently losing to our neighbouring countries will come here,” Lai Mohammed said.

Lekki port

The facility is situated at the Lagos Free Trade Zone (LFZ), along the Lekki Corridor. The project that is over 85 per cent completed, is projected to be one of the most modern ports in West Africa, offering support to the commerce in Nigeria and the West African region.

It is the largest seaport in Nigeria and one of the biggest in West Africa. The port has the capacity of handling about six million TEUs of containers and a significant volume of liquid and dry bulk uncontainerised cargoes. It will accommodate vessels with over 14,500 containers.

Financed by private investors who have funded the project with over $1.5 billion, the port occupies 90 hectares.

The Lekki Port LFTZ Enterprise Limited (LPLEL) is a joint venture among the Investment Holdings Inc. (comprising China Harbour Engineering Company Limited (CHEC) and Singapore-based FMCG giant, Tolaram Group), the Lagos State Government and the Federal Government through the Nigerian Ports Authority (NPA).

Although CHEC owns the majority shares in the Lekki port project, the Chinese Development Bank (CDB) also signed a 45-year concessionary agreement with LPLTZ to complete Phase 1 of the project.

NPA and revenue generation

The Lekki seaport will become the third in Lagos. Nigeria has six major seaports, namely, Lagos Port Complex, Tin Can Island Port (TCIP), Lagos State, Calabar Port (Cross Rivers State), Delta Port (Delta), Rivers Port (Rivers State), and Onne Port (Rivers State).

Last year, Nigerian Port Authorities (NPA) reported that despite the impact of the COVID-19 pandemic, its Internally Generated Revenue (IGR) grew significantly by 120 per cent between January 1 and last September.

During a presentation to the government, the Managing Director of NPA, Mohammed Bello Koko, said the agency earned N256.28 billion ($619.62 million) in Internally Generated revenue by last September, exceeding an initial projection.

Gains awaiting the country

When the port begins operation in the last quarter of this year, its promoters said it will make it possible for Nigeria to regain the maritime business that was lost to ports in Togo, Cote d’Ivoire and Ghana. It is also a big boost to Nigeria in its quest to take advantage of the implementation of the African Continental Free Trade Agreement (AfCFTA).

“A major advantage we have to leverage is transhipment. With this port, Nigeria will become a transhipment hub and the revenue we are currently losing to our neighbouring countries will come here. That’s big! “

Phase one of the project, it was learnt, has reached an 89 per cent completion rate, assuring that it will hit the 100 per cent mark in September this year.

He further spoke on the various aspects of the project this way: “The facilities here are first class. We have seven ships to shore cranes and 21 RTG cranes. No port in Nigeria currency has this. The excellent equipment is why this port can do 18,000 teu, which is more than four times the number that can currently be handled by our other ports.

The project is self-sufficient in required electricity. It is also ready to generate up to 10 Mega Watts and the total capacity is 16 megawatts.

Cargo evacuation from Lekki port:

Stakeholders said they were concerned about the efficient evacuation of goods and services at the port as anybody and the government know that the ultimate would be to connect this port to rail for optimal use.

What Amaechi said:

The Minister of Transportation, Rotimi Amaechi in a recent inspection of the project, said that the privately funded project, is expected to allow investors recoup their money after, which they will hand over the seaport to the Federal Government.

“The project will contribute about $360 billion over the years. It sounds much, but we actually need more of that money to accomplish what we want to achieve. But obviously taxes will be collected here and even them (contractors) will pay taxes. I am not sure there was any taxes mentioned in the agreement, but I doubt there is any tax exemption.

“This is the first seaport in Nigeria. What we had all these while are river ports , Tincan is a river port, Apapa is a river port and port Harcourt too. Right here, you have 16.5 metres drafts which is good for the country, but the country needs more than just one of this port because of the increase in commercial activities in the future.

What the Lagos State govt did

To facilitate its completion, the Lagos State Governor, Mr. Babajide Olusola Sanwo-Olu, signed the $629 million financing facility aimed at completing the Lekki Deep Seaport project. According to the agreement, Nigeria’s first deep seaport will be delivered on time. The signing of the agreement has put to rest the speculations and all reservations concerning the speedy delivery of the viable project.

Upon completion, the project has enormous capacity not only to stimulate the Lagos economy, but equally to push it up in the index of largest economies in the world. The Lekki port would become the first deep seaport in Nigeria and the container transportation hub in Africa.

The signing of the $629 million financing facility by the governor, offers a new impetus for socio-economic growth in the state. It also represents the dawn of a new era in the state government’s ambitious plan to transform the Lekki corridor into a new economic hub in West and Central African subregion.

Economic benefits of Lekki port:

The President, Nigeria Private Sector Alliance, Mr Adetokunbo Kayode, said the Lekki port, being one of the biggest in Africa, would be of huge benefit to the nation’s economy.
Kayode, a former Attorney General and Minister of Justice, said upon its completion, the project would result in better efficiency in the import and export of goods in the country.

He said: ”Of course it will also help us to reduce the stress that has been created by Apapa port which is a colonial port which we ought to have done away with 50 years ago.
”But right now, we have this opportunity, this first phase which hopefully should be completed before the end of the year would help to alleviate all the challenges of international trade in Nigeria’’.

Amid dwindling revenue caused by falling oil prices, and worsened by revenue leakages such as duty payment evasion, the Nigeria Customs Service (NCS) is implementing the Vehicle Identification Number (VIN) next month to track imported vehicles and generate funds. OLUWAKEMI DAUDA reports.

BARRING any last-minute changes, the new Vehicle Identification Number (VIN) valuation policy will take off next month. To give teeth to the policy, the Nigeria Customs Service (NCS) will deploy its scanners after the one month’s grace given to agents in clearing their vehicles.The policy was recently introduced by the Federal Government.

What is VIN?

It is a unique serial number assigned to vehicles and motorcycles to help identify them. In Nigeria, it’s popularly called chassis number. It was first used in the United States in 1954. There was no standard on how VINs should be, so automakers made use of various formats. Not until the U.S. government, along with car manufacturers, came up with a standardised VIN system. Then in 1981, the U.S. National Highway Traffic Safety Administration (NHTSA) decided to standardise the format.

The approved format required sold vehicles to have a 17-character VIN. These characters don’t include the letter O, letter I and letter Q to avoid confusing them with numerals like 0, 1, and 9. Since then, the auto industry has integrated the VIN into vehicle components. Globally, it was learnt, there are four competing standards that are being used to calculate the VIN.

The roles of VIN

VIN plays the same role in the life of a car like the fingerprints. In other words, it is the DNA of a car.

Every vehicle comes with VIN for proper identification. It is regarded as a key to safety in the auto world and provides information about the history of a vehicle.

• Guarantee to the insurance provider. It acts as an evidence of Year Make Model (YMM). Prior to giving the quote or insuring them, most of the car insurance providers require the VIN. The number guarantees the service provider that it is giving the insurance to the real vehicle.
• VIN saves time. VIN helps to update your vehicle inventory or comes to use while you plug in YMM to identify the details of the vehicle. This saves time and effort and helps to list off the inventory.
• It is a source of the vehicle history. As you know, VIN helps to know the history of the vehicle. You need this history when you deal with used vehicles. It also helps when you sell the used inventory or purchase it.
• With VIN, you can find out the year, make and model of the car, which can be of help for safety recall information. Although the consumer will not know that they have an open recall, it can be of help while buying the used vehicle.

VIN as revenue spinner

VIN valuation, according to the management of the NCS, will determine the value of import duty that an importer is expected to pay on an imported car.

The Assistant Comptroller-General of Customs, Information Communication Technology (ICT)/Modernisation, Saidu Galadima, confirmed that VIN is automated to aid the valuation of imported vehicles.

Galadima said VIN was aimed at addressing the agitation of agents and other port users who have been calling for a standardised valuation system. He said VIN, using artificial intelligence, helps to allocate appropriate value and taxes to vehicles. “The only thing Customs needs from the importer or his agent is the VIN, and the system will automatically evaluate based on the available data across the world. It will bring out data on the vehicle, including the make, model, and year,” he said.

Galadima added: “In all this process there is no human contact, the system uses artificial intelligence to allocate the appropriate value and it eliminates human interference, which means that the system uses self-declaration. The importer knows the cost of his or her vehicle, and if the person declares it correctly and make payments, within six hours, he or she will be out of Customs control.’’

On the protest by clearing agents against VIN, NCS’s National Public Relations Officer (PRO), Mr Timi Bomadi, assured them of NCS’s support and that what the Customs would be doing till the end of this month, “is to run the automated system side by side with the manual system to aid decongestion of the port’’.

Our stand, by stakeholders

But the Vice President Association of Nigerian Licensed Customs Agents (ANLCA), Dr Kayode Farinto said they were not against VIN, “but we are against the outrageous value. We have asked them to consider accidented vehicles and mileage of vehicles imported as stated in the Customs Law. Therefore, we are still waiting to see what they will come out with by the end of the month.

Farinto queried Customs on the data the service is using in the determination and implementation of VIN. “The data you are using for VIN where did you get it from? These are the basic questions you have to answer. If you must implement a new policy, you need to carry the stakeholders along. You cannot shave my head in my absence’’.

Although the ANCLA chief agreed that the Customs is protecting the revenue of the Federal Government, Farinto warned that it must not be done to the detriment of the nation’s economy.

Why stakeholders are worried

It would be recalled that last year, the Federal Government made VREG mandatory and a prerequisite for clearing vehicles.

It was aimed at providing a database for VIN and to reduce vehicle theft, enhance national security and generate revenue for the government.

The scheme is powered by key agencies, parties and stakeholders and it is being implemented by the Federal Ministry of Finance, Budget and National Planning, in collaboration with NCS and state governments.

However, less than one year after, stakeholders said the introduction of the vehicle registry had brought hardship to them because of its failure to meet their expectation.

Issue

Importers and agents claimed the VREG platform created by the Federal Ministry of Finance for imported vehicles had collapsed.

Because of this, they explained that imported vehicles had been trapped at the various terminals inside the Tin Can Island Port.

The Public Relations Officer of the association, Tin-Can Island chapter, Onome Monije said his colleagues were finding it difficult to access the VREG platform, noting that to bring out vehicles from the terminals had become a nightmare.

She added that the trapped vehicles were attracting huge storage and demurrage charges from terminal operators and shipping firms.

The spokesperson stressed that the VREG platform had been down due to server failure.”The VREG is for consignments with chassis or serial number. It is mandatory for us to register with VREG before we can proceed to Customs’ portal for duty assessment and payment because the vehicle registry has been integrated with the Customs platform.

“As a result of the inability to access the VREG platform, we stay awake in the middle of the night searching for network and sometime it comes up 2am or 3am and whenever there is an amendment, it is difficult to do, ‘’ she said.

Monije pleaded with the Finance ministry to have a help desk where complaints can be made and resolved, noting that it was also important that the government should have office in Lagos and the ports for effective working relationship with clearing agents and importers.

She added: “VREG is a great pain on clearing agents’ necks and we don’t want VIN to be the same. The process is cumbersome as OTP code must be generated with a minimum payment of about N4,700 per unit vehicle. We are losing millions daily while shipping companies and terminal operators are gaining millions of naira daily.

“Also, no one is telling us what the issues with the VREG’s network are and storage charges is increasing daily. Maybe shipping and terminal operators are paying commission to them through the huge demurrages and storage charges we are accruing.”

The minister reacts

Last year, the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, said a study shows that between October 2018 and September 2019,  the country recorded over N1.8 trillion value of used vehicle importation, noting that Nigeria was the hub of stolen vehicles VIN was not in place. The minister lamented that many vehicles could not be traced, but that with the introduction of VIN, it would be easy to do so.

Statistics had showed that the country imported 400,000 automobiles between 2015 and 2020, but there was no VIN to trace them.

However, the Minister said: “The Federal Government, through the Ministry of Finance, Budget and National Planning, launched the VREG, which is a national repository of vehicular information that seem to provide a single platform through which all relevant agencies shall reference vehicular data with a view to ascertaining ownership and value information.

“The data process will also enable capturing of vehicular exchanges and utilising of VIN in Nigeria. Additional value is also accruable to the Federal Government, state governments and related agencies via this policy. The VREG will serve as single source of validation at the point of vehicle registration, while capturing and storing all information over the life cycle of the vehicle for the purpose of effective motor vehicle administration, documentation and tracking of vehicular activities across the nation to enhance national security.

“Since the Federal Ministry of Finance, Budget, and National Planning is saddled with managing the nation’s finances and revenue streams. In the mid of dwindling revenue orchestrated by falling oil prices, mono economy and further worsened by revenue leakages from unplugged loopholes such as customs duty payment evasion, it became imperative that the government be responsive to these issues.”

Although it is imperative that the leadership of the NCS is trying to secure the country, block revenue loopholes and theft, experts said there was the need for it to make the VIN policy work for smooth trade facilitation, reduction in the cost of doing business in our ports and in line with the international best practices.