The Nation Newspaper

Category: Maritime

  • Car smuggling booms at Idiroko border

    Car smuggling booms at Idiroko border

    • ‘Unfriendly import policies fuel illegality’

    Smuggling, especially of vehicles, seems to have gone up at the Idiroko border in Ogun State.

    The seeming success recorded by smugglers, The Nation learnt, is traceable to the porousity of the border, with numeous bush paths, unlike Seme, which has clearly defined roots and a clear waterway.

    Smugglers have taken advantage of the numerous undefined and unmanned routes to ferret cars across to the Nigerian end of the border, beating Customs officers in the game.

    A visit to the area at the weekend revealed a lot of routes used by smugglers.

    Despite the efforts of the Comptroller-General, Nigeria Customs Service (NCS), Alhaji Dikko Abdullahi, to boost the morale of his officers and men, smuggling through these routes has remained unabated.

    When The Nation visited the area  about 6 pm last Friday, some smugglers were moving about 30 vehicles from Owode-Idiroko to Alapoti, Apena, Ketu-Adie-Owe and Atan – all in Ogun State.

    The Customs’ Public Relations Officer, Ogun Command, Usman Abubakar, said officers and men of the command were doing their best to stop smuggling.

    “I don’t know the area (Alapoti and Apena) you referred to in your statement. But you will agree with me that our border is porous. We are trying our best to bring to reduce smuggling to the barest minimum in our command, Abubakar said, adding: “Last month, we destroyed over 10,000 cartons of smuggled poultry products and 100 cars were seized by our officers from smugglers using unapproved routes.”

    Usman also invited this reporter to visit him in the office for an interview.

    But another Customs officer, who does not want his name in print, said some smuggling flashpoints had been identified in the bush and other illegal routes in the state.

    “With this information you have given to us, we will commence intensive and aggressive patrol in the areas to nip the activities of smugglers in the bud.

    “Despite our efforts to control the illegal activities of the smugglers, you must also realise that several factors directly or indirectly have encouraged smuggling, one of which is what the smugglers called unfriendly import policies of the last administration.

    “Smuggling of cars, rice and other essential commodities through the illegal routes may continue to flourish, unless the Federal Government reduces the import duty and surcharge on these items.

    “Some of the importers who used the ports of neighbouring countries did so to evade Customs duty. That is the major reason they patronise the ports of neighbouring countries. For example, some car importers still prefer to discharge at the Cotonou Port where they pay little as duty and try to smuggle the vehicle into the country. They are trying to avoid the payment of the 35 per cent duty imposed by Jonathan’s administration. It is the same with rice that go to the Cotonou port.

    A clearing agent, who works at Idiroko border, Mr Adejare Sylvester, told The Nation that Idiroko border has become the hub of smuggling.

    The Federal Government, he said,  loses billions of naira as smugglers are exploiting the auto policy to bring in used vehicles into the country.

    “Since the Federal Government introduced the new auto policy the rate of smuggling vehicles through unapproved routes around Idiroko border has increased.

    “Whereas we have 84 approved border control posts across 4,000 square kilometres, there are well over 1,400 illegal routes across the country, which are not manned. This has great economic and security implications for our nation.’’

    Adejare blamed the high rate of smuggling on high duty rates of cars, saying that Customs duty and charges should be reviewed downward by the administration to stop cargo diversion and end car smuggling.

    “Unless this is done, the Federal Government would continue to lose huge revenue while car smuggling will continue to thrive at this border with the numerous illegal routes that surround it.

    “Smuggling can never be eradicated anywhere in the world. The major duty of Customs officers is to suppress it. Customs officials are not God or superhuman and they are not allowed to use their guns arbitrarily or overreact because everybody is presumed to be innocent until the person is caught,” Adejare said.

     

  • Shippers to Buhari: reposition maritime

    Shippers to Buhari: reposition maritime

    President Muhammadu Buhari has been urged to reposition the maritime industry.

    The Shippers Association of Lagos State said Buhari should tackle the high cost of cargo processing at seaports, which, it said, is caused by the multiple charges on imported goods.

    Speaking in Lagos, the association’s President Mr Jonathan Nicol, listed the five per cent Value Added Tax (VAT) and the one per cent Pre-Arrival Assessment Report (PAAR) charge as  some of the charges.

    The others are the 35 per cent Automobile Levy and the Common External Tariffs levy.

    According to him, these charges on one consignment affect shippers’ profit.

    The shippers urged the Federal Government to cut the costs to make business easy at the ports.

    They also urged the Federal Ministry of Finance to assist to solve  shippers’ problems.

    The shippers’ boss said the government should think about the huge investments in building seaports as well as maritime prospects in the next 20 years to attract more cargo.

    Nicol also suggested that plans must be made by the government to secure and promote the local industries, the manufacturing sector and the shippers.

    He noted that it was the duty of the government to encourage private entrepreneurs toward sustainable contributions to developing the economy.

    “When you add the costs of generating power in a factory with salaries, these costs cannot be by-passed whether you like it or not.

    “You must provide power for your factory and you must pay staff salaries,” he said.

    Nicol said the bottlenecks at the ports were the reason the government’s appointed the Council as the economic regulator, adding that the Council was aware of some of the problems.

     

  • Ex-councillors, others seek priority for Maritime Academy

    Ex-councillors, others seek priority for Maritime Academy

    President Muhammadu Buhari has been urged to put the Maritime Academy of Nigeria (MAN) in Oron, Akwa Ibom State on its priority list.

    The Association of Former Councillors of Oron Nation (AFECO) made the call after a tour of the academy.

    The  group praised MAN’s Rector Mr Joshua Okpo for doing a “good job”, saying he has raised the  infrastructure base of the nation’s sole maritime institution.

    Addressing reporters in Uyo, the state capital, after the tour, the group’s President, Mr Okon Edet Iyohokwa, said it was not happy that past administrations neglected the academy’s development.

    He urged President Buhari to assist the institution.

    Iyohokwa alleged that the institution had been under funded by the government, adding that it had not been accorded the status befitting a special institution.

    The group listed some of the challenges of the academy to include its non-listing by the International Maritime Organisation (IMO), World Maritime University and other relevant international maritime authorities. These, it said, had reduced its global status both at the international labour market and participation in relevant global protocols and conventions.

    The group, however, was happy with the institution’s Rector for ensuring that MAN was affiliated to other recognised institutions.

    “As former Oron councillors, we have for a very long time been concerned about the fate of the Maritime Academy of Nigeria. As a special institution like the School of Aviation Zaria, Petroleum Training Institute Warri, Nigeria Defence Academy Kaduna, to name just a few, we had hoped for a realistic provision of adequate maritime training for the production of the needed maritime manpower.

    “Top in our worry is the realisation that MAN Oron is just beginning the process of affiliation and partnership with global maritime regulatory bodies, such as the International Maritime Organisation (IMO) and World Maritime University (WMU), and there are other relevant bodies beside these two. We feel sad that with over 30 years of historical sanction, MAN Oron lacks the academic and technical base to qualify cadets based on the Manila Convention, and our cadets are compelled to pursue their course completion programme in other maritime academies, in the world.

    “We do not only find this unacceptable, for us, it is scandalous and seemed to be the height of executive inaction, and or, executive negligence. Knowing the track record of President Buhari, we feel assured that his administration will provide the turning point for the academy. We also feel assured that with the incumbent rector’s track record, Mr. President will not have problems not only in getting his mandate and turn around commitments properly executed, but also timely and expeditiously. As concerned stakeholders, we desire that MAN Oron must take its pride of place as an important component of our economy, and the time is now.

    “Unfortunately, in the past 20 years, we have watched helplessly as the most basic training facilities and assets were not provided. It is clear that training under this reality in the past has been adhoc in nature and incomplete. Funding for the academy is inadequate and we are also concerned about part of the academy’s funding arrangements derived from a statutory five percent of the net earnings of the Nigerian Maritime Administration and Safety Agency (NIMASA), which is released to the academy at piece meal and at the whims and caprices of the leadership of NIMASA,” he said.

    Its Secretary, Essang Achibong, urged President Buhari to reposition the institution for better performance.

    “We are happy and grateful to God that a man of integrity like President Buhari has ascended to power. We urged him to take more than passing interest in the affairs of MAN Oron in respect of holistically repositioning the academy, and we are very hopeful that Mr. President will afford the incumbent rector a second term appointment to enable him complete the very laudable clean-up programme and enviable developments projects he has started.

    “We feel concerned that since the return to civilian administration in 1999, MAN Oron ceased to catch the list of important departments of growth and an agency of the Federal Government. Yet, this is supposed to be a critical manpower development platform for us as a maritime nation. We feel sad that cadets that graduated from this academy end up being okada riders not because they couldn’t excel academically, but because critical gaps within their completion course content such as mandatory sea time training were not provided due to lack of training ships. They get stuck in the middle of nowhere, like medical students denied their mandatory house-man-ship. This is very painful and we look up to the  administration under  Buhari, to give the academy the lift it urgently requires.” Achibong said.

     

  • Dogara, Dikki praise terminal operators

    Dogara, Dikki praise terminal operators

    House of Representatives Speaker Yakubu Dogara and Bureau of Public Enterprises (BPE) Director-General Benjamin Dikki have praised operators at the seaports for improving their terminals with world-class equipment.

    Dogara spoke at a conference on the review of port concession agreement, organised by the Nigerian Shippers’ Council (NSC) and International Maritime Exhibition and Conference (IMEC) in Lagos.

    Represented by the House Deputy Chief Whip, Hon. Pally Iriase, the Speaker said the 2006 port concession had brought tremendous benefits to the economy.

    He said the average turnaround time of vessels has also reduced significantly.

    “Since the concession agreement in 2006 till date, terminal operators have recorded some achievements as evidenced by the injection of funds for the provision of port infrastructure and equipment,” he said.

    He listed the achievements, as  “seaside operation, which has drastically reduced the vessel turnaround time at our ports, the perimeter fencing of all the terminals in compliance with ISPS Code and improved security of cargoes at terminals among others”.

    Dogara charged the operators to do more, especially in automation of cargo clearance, enhancement of cargo examination processes and rehabilitation of the port access roads.

    Dikki also said the positive impact of port concession could not be overemphasised.

    “Anybody, who has seen the port in 2006 and goes round the port today, will know that the concessionaires have made investment that ordinarily, a government cannot bring out from his budgetary allocations to support,” he said.

    Dikki praised the Nigerian Shippers Council, calling for the quick passage of the Ports and Harbours Bill to reap the full benefits of the concession.

     

  • Stopping the N50b illegal poultry trade

    Stopping the N50b illegal poultry trade

    With the crash in oil prices, Nigeria needs to boost its revenue through other sources. The Nigeria Customs Service (NCS) believes it can save the country N50 billion by curbing poultry smuggling. Maritime Correspondent Oluwakemi Dauda reports from Singapore.

    It is a huge task, but the Nigeria Customs Service (NCS) says it is prepared to confront it to ensure a saner economy. Smuggling has deprived the country of huge revenue and rendered many companies comatose. By tackling the problem, Customs is set to protect N50 billion poultry investments, boost farmers’ earnings and create jobs to meet the President Muhammadu Buhari administration’s objectives.

    Over 80 per cent of smuggled poultry comes in through Benin Republic. The unhygienic products are said to be partly responsible for digestive and intestinal problems of consumers.

    NCS operatives have taken the war against importation of frozen poultry to the creeks, footpaths and other flashpoints to check their influx into the country.

    Customs officers from the Federal Operation Unit (FOU) Zone ‘A’ Ikeja, an investigation revealed, have increased their patrols on land and sea, fortified check points and swampy areas, where operational boats and vehicles could not access with committed officers.

    A senior official of the National Agency for Food, Drug, Administration and Control (NAFDAC), who does not want his name mentioned, said the special anti-smuggling operation initiated by Customs Comptroller-General (CCG) Alhaji Dikko Abdullahi against illegal importation of frozen chicken and turkey had started yielding results.

    The official told The Nation that FOU officers had increased the tempo against imported frozen poultry on Badagry Road, Gbaji, Seme, Idi-Iroko, Abeokuta and Ijebu-Ode to achieve national food security and protect the economy.

    With the high rate of seizure by officers and men of the unit, the official said the country could no longer be a dumping ground for smuggled poultry, most of which he said were preserved with chemicals dangerous to health.

    The official pointed out that since the launch of operation “Hawk Descend” to date, Customs has seized over N600 million worth of poultry products from smugglers.

    It was learnt that 29,341cartons of smuggled frozen poultry products valued at N132,034,500.00 with payable duty of N26,406,900 were seized between January and last month by the FOU officers in Ikeja.

    Officers of the unit, it was learnt, also recorded 1,030 various remarkable seizures, valued at N593,673,300.00.

    Prior to this time, a source said Customs had various modes of operation, which basically included hinterland operations. But with the new directive from Abdullahi outlawing all forms of hinterland operations, the source said officers and men of the service had devised other methodologies which are in tandem with global best practices.

    He said NAFDAC was happy over the strong will with which officers and men of the service have pursued the interception and destruction of imported poultry products, because the industry has contributed 25 per cent of the agricultural Gross Domestic Product (GDP) and created over 40 million jobs for Nigerians.

    He drew attention to the health hazards posed by the products, stating that smugglers often hide them in fuel tankers to bring them to the markets for consumption.

    “The Federal Operations Unit (FOU), Zone ‘A’, Ikeja, of the service remains a beacon and rallying point in view of the strategic role it plays in the anti-smuggling drive.

    “The unit plays a big role because of its statutory functions and this is evident from the paradigm shift in its anti-smuggling activities since inception of the current administration, which has led to huge seizures of poultry products and other items that have remained unprecedented in the annals of the service.

    “The smuggled poultry products are usually preserved from spoilage with formaldehyde, the same chemical used in mortuaries to preserve corpses. This exposes consumers to carcinogenic substances, which predispose people to cancer.

    “The domestic poultry industry as predicted by a 2011 Nigeria Agribusiness Report, is growing. Onallo Akpa, an executive of the Poultry Association of Nigeria (PAN) estimates commercial production at N51.2 billion and rural family production at N320 billion, with 553,000 metric tonnes of eggs and 708,000 metric tonnes of broiler meat being produced as at 2011. With the poor economic situation of the country, high rate of unemployment and dwindling fortune of the crude oil at the international market, the figures must have increased,” the source said.

    He continued: “Six  kilogrammes of eight chickens we eat in Lagos and other big cities in the country is imported smuggled chicken. We have no doubt that the current efforts of Customs against smuggling of poultry products will reduce that by 50 or 60 per cent. If we are able to achieve that, it will help in generating millions of new jobs and save the country about $1.5 billion because we estimate that the total amount used to bring smuggled chickens into this country is about $2.75 billion yearly.

    “The poultry industry is in a good position to generate employment, create wealth and contribute to the economic development of the country. Poultry constitutes 25 per cent of agricultural GDP; as producer of animal protein, they do not only employ poultry farmers, they also have farmers of maize, farmers of soya beans, farmers of groundnuts as their members because the poultry farmers consume about 2 million tonnes of maize, and need about 500,000 farmers to produce that every year. Other crops like soya, palm kernel and rice, among others, are being used for the formulation poultry feeds,” he added.

    Poultry business, according to the source, has contributed 25 per cent of Nigeria’s agricultural Gross Domestic Product and created over 40 million jobs. The Federal Government, he said, through the NCS could not continue to watch things go down the drain with the increasing rate of smuggling poultry products in the country. Poultry is very strategic to the growth of Nigerian economy like that of other countries of the world.

    “If Customs allows the smuggling of poultry to continue, what will be the fate of over N50 billion investments in this country? What will be the fate of employment created by this industry for Nigerians?” the official asked.

    When contacted, the Area Controller, FOU, Ikeja, Mr Adamu Turaki, said the smuggled poultry products do not only pose serious health risks, but their importers also circumvent payment of Customs duty since the items are prohibited.

    Officers and men of the unit, Turaki said, are waging a serious battle against poultry products smugglers because they are depriving the nation of its needed foreign exchange and job opportunities for the citizens.

    “The Nigeria Customs Service, in its renewed determination to strike a final blow to poultry products smugglers, recently launched operation ‘Hawk Descend’. You will recall that Government in its wisdom banned the importation of frozen chicken and turkey into Nigeria. It is pertinent to note that smugglers all over the world thrive on products whose trade are controlled, restricted or out rightly banned. This explains the strong will with which the Nigeria Customs Service have vigorously pursued this project.

    “We are aware of the dangers posed by the importation of these products in terms of the adverse effect on the economy and in terms of depreciation of our GDP, resulting in unwarranted cases of unemployment and the attendant health hazards. They need not be over-emphasised. The NCS in its effort to sustain the campaign is strengthened by the outcome of a recent medical research which re-confirmed our fears about the health hazards inherent in the consumption of smuggled products.

    “We have a responsibility to protect the heavy investments of our local farmers and we cannot abdicate this responsibility. The fight against smuggling of these unwholesome products will be taken to the creeks and other flashpoints, we suspect provide access to smugglers. We have heightened our aggressive patrol activities to actualise this mandate.

    “We are, however, not pretending that even with all our arsenal, we can win this war on our own and that is why collaboration with stakeholders and dependable allies has become most expedient,” Turaki said.

    He added: “The unit remains fully committed to this campaign and will stop at nothing until smugglers of the products are decimated and their supply chains blocked. We strongly believe that this strategy will help in checkmating and possibly bringing smuggling of the products to a halt.”

    The Customs chief stressed the need to protect local farmers and the attendant creation of jobs from the negative effect of those he described as “unpatriotic persons”, who have taken smuggling as means of livelihood.

    Turaki praised Abdullahi and his team for their unalloyed support and encouragement with the provision of an “enabling environment”, which informed the achievements the unit has recorded.

    The Chairman, Chicken Traders Association at Alaba-Rago Market, Lagos, Alhaji Sanusi Salau, said the biggest part of poultry industry is broiler chicken and the country produces about 300,000 metric tonnes annually.

    “The biggest part of poultry industry is broiler business and, in this country, we produce about 300,000 metric tonnes of chicken annually of which we are consuming about two million tonnes of maize. This aspect alone has enabled the poultry farmers to engage over 500,000 maize farmers without putting into consideration others who will take part before it gets to the market and end users.

    “Let’s now imagine the number of jobs that would have been created in poultry industry alone if we can put a stop to about 1.2 million metric tonnes of chicken smuggled into the country on yearly basis,” Salau said.

     

  • Customs develops single platform on goods clearance

    Customs develops single platform on goods clearance

    The Nigeria Customs Service (NCS) has developed a single window platform to quicken the release of cargoes from the port, its Public Relations Officer, Wale Adeniyi, has said.

    He told The Nation that the Service had experienced some hiccups with  the scanners it inherited from the former service providers, adding that the challenge had been overcome with the single platform now in place.

    He said: “The scanning machines bequeathed to us are not good because they break down most of the time. But the single window platform we have created is assisting us. Once you make genuine declaration, you don’t have problems with Customs in terms of releasing your cargo.’’

    However, Adeniyi, who spoke in Dubai, United Arab Emirate, stressed the need for port users to consider the other support agencies in the ports, which duties also impact on Customs’ operations. He advised other government bodies to adopt the NCS’s approach to facilitate the clearance of goods.

    ‘’But don’t forget that you have other agencies that have one or two responsibilities to perform before your goods can exit the gate because that is where they blamed the Customs for problems not created by us,” Adeniyi said.

    On the pressure put on the Customs by the government to generate more cash rather than facilitate trade, Adeniyi said one of Customs’duties is to generate money for the government.

    On how to make the ports viable and justify their hub status, a senior official of the Federal Ministry of Transport, who spoke on condition that his identity be veiled, said the  Muhammadu Buhari administration should reposition the ports.

    This way, he pointed out, the  seaports can generate adequate revenue to reverse  the dwindling intake from the drop in oil prices at the international spot market, redress the rot in the ports and make them to be  revenue spinners.

    The official said unless the government takes a critical look at the human and infrastructural problems confronting the seaports and addresses them, it may be difficult for it to meet the hub status and would continue to lose cargoes to other ports in the West African sub-region..

    The sea ports, the official claimed, are not competitive and attractive. To him, some senior officials of the Federal Ministry of Finance, the management of the Nigerian Ports Authority (NPA), the Nigerian Maritime Administration and Safety Agency (NIMASA), some other government agencies and key operators in the maritime sector are not on the same page with the Nigeria Customs Service (NCS) over the plan to make the seaports the hub of shipping and maritime.

    Some of the agencies, according to findings, are yet to key into the single window of the NCS to facilitate the quick cargo clearance from the ports and boost trade.

    President Buhari needs to put some measures in place to reduce human contact at the ports to make them the hub for shipping business within the West and Central African regions, he added.

    The official, however, faulted NPA’s prediction that there would be a 5.9 per cent increase in the tonnage of cargoes coming to the Lagos ports, next year.

    He said the figure was not based on ‘accuracy’, but a mere ‘fallacy’ because in some of the neighbouring ports, such as Cotonuo, Ghana and Togo, officials have adopted the e-payment system and paperless transaction as championed by the NCS.

    “Nigeria is the only oil producing country where officials of Ministry of Finance will put pressure on its Customs Service to generate more revenue, rather than compel it to facilitate trade and make the ports more attractive for business.

    “Before President Goodluck Jonathan left in May, nobody cared about the state of the multi-billion-naira old scanners bequeathed to Customs by the former service providers. They were less concerned that the scanners were not working efficiently, as they  broke down every time and  delayed the process of cargo clearance by Customs officials at ports and borders, yet, the last administration gave Customs about N1.2 trillion  revenue target.

    He continued: “During the last administration, the pressure on the management of the Nigerian Customs Service to generate more revenue was so high that they generated almost a quarter of the nation’s annual budget. Another bad side of it was that Customs collected over 70 per cent of the money from the two ports in Lagos without any corresponding development of the port infrastructure by the Federal Government.

    “To move your cargo in and out of the Lagos ports is still a big problem till today. Therefore, where is the efficiency in our port operation if it takes a truck driver more than three days to pick a container inside the port and another two days to come out? Whereas, in other ports, such as Singapore and Dubai, it takes them just about three hours to move your container out of the port. Even at Cotonou, it takes them less than a day.

    “The government must know that the country cannot attain the hub status of West African vessel traffic if our ports are not efficient and the cost of doing business at the ports remains high. For example, terminal operation charges in the ports for a 20-feet container is N62,682, while that for a 40-feet container is N87,682. The demurrage-free period at our ports is three days. Whereas, it takes truck drivers up to three days to access the port.’’

    He added: “As long as the country is not competitive with its port charges, compared to others in the West African sub region, then the country cannot be a trade hub. One of the ways to achieve this is to improve port infrastructure, embrace paperless transaction, reduce the pressure on Customs for revenue generation and empower the Nigerian Shippers Council (NSC), as economic regulator, to effectively check all illegal collections at the ports.

    “For instance, the figures from the NPA showed that a total of 31,993 vessels with cumulative registered tonnage of 676,379,752 called at the ports between 2006 and 2012. The, vessels, according to NPA, carried a combined cargo of 467,422,225 metric tonnes.

    “NPA also claimed that cargo throughput handled at Nigerian ports in the third quarter of 2014 stood at 22.3 million metric tonnes, showing an increase of 12.5 per cent over 19.8 million metric tonnes handled in the third quarter of 2013.

    He said the NPA claimed to have handled  4.21 million metric tonnes of general cargo in the third quarter of 2014, representing an increase of 41.7 per  cent over the 2013 third quarter volume of 2.6 million metric tonnes of dry, bulk cargo, representing a marginal increase of 0.6 per cent over the corresponding period of 2013.

    The Liquefied Natural Gas (LNG) volume, he said, stood at 5.1 million metric tonnes; a growth of 5.8 per cent over 4.9 million metric tonnes over the third quarter of 2013.”

    He noted: “The ports, NPA claimed, also handled 5.2 million metric tonnes of refined petroleum products, 277, 694 TEUs of laden containers and 217, 080 TEUs of empty containers, representing 9.1 per cent, three per cent and 9.5 per cent increases, over the third quarter of 2013. A total of 1,405 oceans-going vessels it said, called at all Nigerian ports in the third quarter of last year as against a total of 1,366 vessels that called at the same period in 2013, representing an increase of 2.9 per cent.

    “The total gross registered tonnage of all ocean-going vessels in the third quarter 2014 based on the figure released by the NPA amounted to 38 million metric tons, representing an increase of 9.8 per cent increase over the GRT of 34.6 million metric tonnes in the same period of 2013.”

    He added: “But the truth is that the cargo throughput that the NPA is claiming included petroleum products that were imported for local consumption. Does that add value to economic growth in the country? The tankers that brought the petroleum products are also vessels. The figures provided by the NPA also included oil supply vessels that supplied oil rigs frequently, as ocean-going vessels that called at our ports.

    He continued: “But what Nigerians are expecting and need are cargoes that will add value to our productive sector, boost the economy and create employment for millions of Nigerians as we see in other clime.  We believe, figures of port calls should only reflect separately those vessels berthing at the port and discharging cargoes, from those supplying. And that is another big area where President Buhari and economic team need to address to make the port a hub in the sub-region.”

     

  • ‘Open ports at weekends, public holidays’

    ‘Open ports at weekends, public holidays’

    The Seaport Terminal Opera-tors Association of Nigeria (STOAN) has advised the Federal Government and other interested parties to ensure that the seaports are open  on weekends and public holidays to promote efficiency and boost revenue.

    Speaking with The Nation, STOAN Chairman Vicky Haastrup said the concession agreement stipulates a 24-hour operation at the ports, a position, she said, was reiterated by former Minister of Transport Senator Idris Umar at a meeting with operators, shipping firms, representatives of government agencies and port users on September 27, 2013.

    At the meeting at the Western Ports office of Nigerian Ports Authority (NPA), Apapa, she said Umar emphasised the need for all parties to turn up for cargo examination and delivery on weekends and public holidays.

    “The Nigerian Ports Authority (NPA) had also, at various times, reiterated the importance of weekend and public holiday operations at the port.

    “For example, on 2nd October, 2013, the NPA issued a public statement to the effect that there were cargo clearance operations at the various terminals on October 1,” Haastrup said.

    The chairman said it was in the interest of the port community that the ports remain open daily for both ship and landside operations.

    “Twenty-four hours operation provides the necessary spread to eliminate congestion and unnecessary backlog of consignments inside the terminals. It makes the ports a lot more efficient and is mandatory.

    “The terminals are open for full operation on weekends and public holidays and many consignees take delivery of their cargo on such days,” she added.

    The spokesman of the group, Mr Bolaji Akiola urged importers and clearing agents to key into the quick cargo delivery system to boost efficiency and make the ports attractive for business.

    “Traffic is lighter and the rush is not as bad as what you see on week days so we urge those who are not taking advantage of these days to do so,” he said.

    The association said since terminals are open during weekends and public holidays, terminal operators are bound to apply relevant charges if port users and other stakeholders fail to make use of the low traffic opportunities provided during the weekends and public holidays.

     

  • Agents petition IGP over practitioners’ fees row

    Agents petition IGP over practitioners’ fees row

    THE Association of Nigerian  Customs and Licensing Agents (ANCLA) has petitioned the Inspector-General of Police (IGP), protesting the new fees regime at the ports,’ The Nation has learnt.

    ANCLA’s petition, it was learnt, followed the Federal Ministry of Transport’s directive to the Council for the Registration of Freight Forwarders in Nigeria (CRFFN) to collect Practitioners Operation Fees (POF) at seaports, airports and borders.

    The order, it was learnt, varies with the agreement reached by the five freight forwarders and the CRFFN when they were invited to Abuja by the police on July 2.

    In a July 22 letter, obtained by The Nation, ANCLA alleged that some individuals were planning to disrupt the peace at the ports, urging the IGP to place his officers on red alert.

    The letter, signed by ANCLA reads: “At an interview, which was held in your office with all parties involved in attendance, it was agreed that all actions towards the commencement of the collection of the POF should be suspended, while efforts should be intensified to ensure that election is held into the Governing Council of the CRFFN. This is sequel to all acknowledging that the governing council is imperative for a complete CRFFN as approved for in its Act 16 of 2007.

    “Surprisingly, we received a letter from the Federal Ministry of Transport purporting to authorise the immediate commencement of POF collection.

    “We, therefore, wish to call your attention to this apparent reneging on the agreement reached in your office and the threats it portends to the freight forwarding industry,” Oparah said.

    ANCLA’s National President, Prince Olayiwola Shittu, told The Nation that association’s board has ordered its members to resist any attempt to collect the fees from them since the election and composition into the Governing Council of the CRFFN as required by its Act are yet to be met.

    He said ANCLA had sued CRFFN over the plan to circumvent the law setting up the Council.

    Meanwhile, ANCLA’s National Publicity Secretary Dr Kayode Farinto has raised the alarm over the appointment of a consulting firm to collect the fees

    Farinto also alleged that the firm would retain 40 per cent of the fees.

    “We have just received information that there was an arrangement to give a company the collection of the controversial POF. The Memorandum of Understanding (MoU) signed with the firm was that the company will collect 40 per cent of the money generated.

    “Some of those behind this company are high-ranking officers in the Ministry of Transport. That is why they are insisting that the POF must be collected by all means,” Farinto alleged.

     

  • Customs makes $20m monthly as revenue loophole is plugged

    Customs makes $20m monthly as revenue loophole is plugged

    The Nigeria Customs Service (NCS) is saving the nation over $20 million (about N4 billion) monthly through the Pre-Arrival Assessment Report (PAAR), The Nation has learnt.

    The country was hitherto losing money until Customs took over the processing of import transactions – in line with the amended Import Guidelines of the Destination Inspection Scheme.

    A senior Federal Ministry of Finance (FMoF) official confided in The Nation that the last administration paid $2.4 billion (about N480 billion) in eight years to former service providers at the seaports before Customs Comptroller-General (CCG) Dikko Abdullahi introduced PAAR.

    Customs, it was gathered, was contributing N30 billion to the Federation Account before Dikko was appointed. It is now generating over N100 million monthly following the automation of its operation by Dikko.

    The Customs’leadership, the ministry official said, is implementing a critical reform and has repositioned its men for trade facilitation.

    The NCS, he said, provides timely, authoritative and accurate information about trade to business communities worldwide through the Nigerian Trade Portal (NTP), which it created.

    “The leadership of the Nigeria Customs Service (NCS), in response to the numerous challenges militating against smooth cargo clearance at the ports, came up with an indigenous data base known as the Nigeria Integrated Customs Information System (NICIS), which is the platform for generating Pre-Arrival Assessment Report (PAAR).

    “For eight years, the Federal Government had to pay the former scanning service providers $2.4 billion. The amount was paid before the PAAR was introduced by Alhaji Dikko.

    “PAAR is a risk management tool that replaced the Risk Assessment Report (RAR) and was borne out of Dikko’s desire to boost the economy, instill discipline in the service, to facilitate trade, build better business relationship, transform cargo processes and see to the free flow of trade at the nation’s sea ports based on the global trend.

    “The majority of us in the Ministry of Finance are happy that the PAAR initiative has brought hope after it has allayed the initial fears of the stakeholders and other agencies of the government.

    “PAAR is a game changer for Customs.  Aside simplifying the clearing processing by ensuring things are done professionally at our ports, it has enhanced the nation’s revenue.

    “We have seen the difference between what was generated during Risk Assessment Report (RAR) regime and what was generated by Customs after the introduction of PAAR by Alhaji Dikko. The man and Customs high command have done a good job in boosting revenue profile of the country.

    “For instance, the Nigeria Customs Service witnessed a huge improvement in its revenue in December 2013 with the raking of N85, 455,977,095 (N85.46 billion). Not only that the revenue accruing to the Federal Government was up, the government also saved N4, 653,374,259 (N4.65 billion) the one per cent Comprehensive Import Supervision Scheme (CISS), which hitherto would have been paid to the service providers.

    The new cargo clearance regime has also received international acceptance and kudos as sister West African countries are sending delegations to now understudy the home grown scheme that was introduced by Dikko,” the official said.

    When The Nation visited Cotonou port last week, a Nigerian, Felix Ayantuga, praised Dikko for his trade facilitation scheme.

    Ayantuga said importers shipped their pipes to neighbouring countries because of the huge tariff in Nigeria.

    “We don’t have problems with the Nigerian Customs. Once you make genuine declaration, officers and men of the Nigerian Customs Service are ready to release your cargo. The introduction of PAAR has made cargo processing and release easier for genuine importers. If an importer makes genuine declaration at any seaport in Nigeria, his container would be released to him in less than two hours after examination.

    “Those that are complaining about Customs procedures are those involved in shady business which the Nigerian Customs is out to correct. For instance, once we load our pipes from here and we pay correct Customs duty at Seme or Idi-Iroko, we would be allowed to go without anybody disturbing you on the road.

    “Since we are the users of PAAR, I want to confirm that we were surprised at the level of competence of Alhaji Dikko in handling of the scheme so far. The delay at the ports in clearing goods had been taken care of and importers are allowed to do a self-assessment in clearing their goods subject to post-audit,” Ayantuga said.

    The President, Association of Nigerian Licensed Customs Agents (ANLCA) Prince Olayiwola Shittu described PAAR as the best option to facilitate trade through the ports.

    “The last time I travelled abroad, some Nigerian importers over there asked me to tutor them on how to embark on quick cargo clearance from the seaport. I explained to them what PAAR is all about and the need for them to make genuine declaration when they bring their cargoes to Nigeria.

    “They were all elated after my explanation and full of praises for Dikko and his officers,” Shittu added.

    Nigeria, he said, is one of the 17 countries of the 179-member World Customs Organisation under the shackles of Destination Inspection agents before the introduction of PAAR.

     

  • Buhari urged to reposition maritime

    The Nigerian Ports Consulta-tive Council (NPCC) has urged President Muham-madu Buhari to reposition the maritime sector.

    The Chairman of the council, Otunba Kunle Folarin, urged the President to assist the industry to arrest its declining fortune.

    Speaking at the roundtable on the Maritime sector and the port industry, tagged: “Setting maritime agenda for the attainment of Vision 20:2020” in Lagos, Folarin lamented that the sector had not achieved its goals over the years.

    He said the forum was not aimed at criticising the government, but to set a roadmap for the Buhari administration on how to develop the industry .

    “We are coming against the backdrop of repositioning the maritime industry because in the last 20 years the maritime industry has seen gradual decline. So, what we hope to achieve is to reposition and refocus the industry within the region.

    “We are giving a road map and we are the pathfinders. The stakeholders are the owners of the industry. We are the only ones that can tell government what we need. We are the professionals; we are the practitioners. That is why the choice of delegate is deliberate. We want to give government a roadmap to create a pathfinder that will deliver, we don’t want a situation where government will come and act in a vacuum. They will have a document and position that will drive the maritime economy and the industry.

    “There must be a reference and it must come from discussion. There must be a document that will guide the industry. You cannot just create a policy without having to know what the stakeholders want; that is why we are discussing.’’

    He added: “We are trying to build the maritime sector, create a sector that will stand out within the region if not in Africa and beyond. That is what we are trying to do, trying to deposit a roadmap and a pathfinder to the promise land.

    “If you look at the table, we have over 500 years of experience; people who have lived all their lives in the maritime sector. That is what we are bringing to the table. It is a very formidable task that we are gathering these men and women in the room. That is what we are trying to do,” he said.

    At the roundtable were the Acting President, Nigeria Shipowners Association (NISA), Alhaji Aminu Umar; President, Shipowners Association of Nigeria (SOAN),  Greg Ogbeifun; former chairman, Nigeria Maritime Expo (NIMAREX) Planning Committee, Margaret Onyema-Orakwusi and former Commissioner for Transport, Lagos State, Prof. Bamidele Badejo, among others.