The Nation Newspaper

Category: Maritime

  • Buhari urged to review policy

    Buhari urged to review policy

    The Free-on-Board (FoB) policy is causing the country a huge loss, the President, Association of Nigerian Licensed Customs Agents (ANLCA), Alhaji Olayiwola Shittu, has said.

    He wants the in-coming Muhammadu Buhari’s administration to review the policy.

    FoB is a trade policy that allows a buyer to pay for the shipment and landing costs of the goods from the port of origin.

    Shittu urged the President Goodluck Jonathan administration to adopt Cost, Insurance and Freight (CIF) for the lifting of crude oil.

    CIF, he said, gives the seller the right to arrange for the ferrying of goods by sea to a port of destination, and provide the buyer with the documents necessary to collect them from the carrier.

    Shittu said a major part of the problems faced by indigenous owners was due to the failure to enforce the Nigerian Maritime Administration and Safety (NIMASA) Act, 2007, eight years after its enactment.

    He said Nigeria is the only country that is still using the FoB policy.

    A member of the group, Mr Segun Ogunsanu, said the indigenous shipping firms have over the years been grappling with lack of cargo support, adding that this had made many of them to close shop, a development which led to unemployment years after the enactment of the act and other legislations, such as the Cabotage Act, 2003 and Nigerian Content Act 2010.

    “The policy is being used to the detriment of the economy,” he said.

    Ogunsanu said the adoption of either the CIF or FoB policy by the Federal Government should be based on how the policy is of advantage to the parties involved in the shipping. The intention of the Cabotage Act, he added, was to give indigenous shipping firms the support to enable them to compete with their foreign counterparts, who have usurped the cargoes on the international shipping route and the coastal and inland region.

     

  • Agents, shippers urge Buhari to review 70% duty

    The Association of Nigerian Licensed Customs Agents (ANLCA) has urged President-elect Muhammadu Buhari to review the automotive policy, which imposes 70 per cent levy on imported vehicles, pending the mass production of Made-in-Nigeria vehicles.

    The 70 per cent levy was introduced by the Jonathan administration to support the local industry.

    ANLCA President Prince Olayiwola Shittu said the 35 per cent duty imposed on used vehicles is obnoxious and urged the in-coming administration to review the policy.

    High port charges, Shittu said, have increased the costs of doing business and encouraged diversion of cargoes to neighbouring countries’ ports, thus, leading to loss in government’s revenue.

    “The in-coming administration needs to review the auto policy and make the port attractive for business. The maritime sector is confronted with many problems that need to be addressed to boost trade and generate employment,” he said.

    Also, the Shippers’ Association Lagos State (SALS) has urged the incoming government to assist shippers in reducing the costs of doing business at the seaports.

    Its President, Mr Jonathan Nicol, lamented that the high port charges had affected the costs of doing business in the country.

    He said: “We have a very big problem in the maritime sector. We believe that government will stick to the maritime sector as one of the most important aspects of the nation’s economy.

    “This will enable other Nigerian shippers, who have gone to the neighbouring ports to come back.”

    Nicol said Nigerians were still expecting basic infrastructure such as good roads, water supply, uninterrupted power supply, good health facilities and free education.

    He also joined ANLCA to urge the government to reverse the automotive policy which imposed a 70 per cent levy and duty on imported vehicles, pending the large production of Made-in-Nigeria cars.

    “If the automotive policy comes into existence without sufficient production of cars in the country, such a policy may destroy the transport sector,’’ Nicol said.

     

  • Rice importers to pay N20b for alleged quota abuse

    Rice importers to pay N20b for alleged quota abuse

    The Nigeria Customs Service (NCS) is poised to recover the over N20 billion duty yet to be paid by seven rice importers for allegedly abusing their quota following the expiration of the ultimatum given them.

    The Federal Government gave the importers up till last Friday to pay for the excess tonnes of rice they allegedly imported, but they did not.

    The Customs, it was learnt, will move against the companies today unless they settle their debts.

    No fewer than 300 Customs officers from the Federal Operation Unit (FOU), it was gathered, may be drafted to seal off their offices for allegedly violating their agreement with the Customs before taking their consignment out of the ports.

    The first default notice was given by the Minister of Agriculture and Rural Development, Dr Akinwumi Adesina, in January. The NCS repeated the notice on April 12, warning that despite several notices, the importers did not pay up.

    In its notice, the Customs claimed that Stallion/Popular Foods imported rice in excess of 475,017 metric tonnes (MT), with an accruing duty of N15.481 billion.

    The second highest importer, Olam, allegedly drew an excess of 110,062 MT, amounting to N3.365 billion.

    Millan Nig. Ltd is to pay N1.089 billion after allegedly importing an excess of 33,641 MT of rice; BUA is said to be owing N846.522 million for allegedly excessively importing 24,092 MT.

    Ebony Agro also allegedly imported an excess of 10,070MT of rice, amounting to N328.201 million.

    Also, Atafi Rice Industries Ltd is to pay N1.297 million after allegedly excessively importing 39.80MT; Arewa Rice Mill will pay N664,876 for allegedly importing an excess of 20.40MT.

    The import quotas were allocated to the importers to bridge the gaps in rice supply last year in line with the government’s policy.

    The policy specifies a preferential levy of 20 per cent and 10 per cent duty for the beneficiaries. Other importers were to bring in rice under the 60 per cent levy and 10 per cent duty regime.

    Of the seven companies, sources close to the Federal Ministry of Finance said, it was only BUA that contacted the Ministry last Friday on its readiness to pay.

    Contacted, a senior Customs officer confirmed BUA’s preparedness to pay.

    “As at close of business on Friday, I understand none of them had paid. But we have a development from the Ministry of Finance excusing BUA. As for the rest, concrete action would be taken against them to recover the money they are owing the Federal Government. We will definitely take action. And don’t forget that the goods were taken with bonds to recover the money,” he said.

    Another senior NCS official said: “Excess import duties on rice owed by the importers amounted to several billions of naira. Some of these companies owe the government debts amounting to billions of naira. The money was incurred for exceeding their preferential allocated quotas for imports.

    “Some of the affected companies are, however, of the view that the Federal Government imposed quota in December, last year, and requested them to make payment of excess duties for importation made when quota has not been introduced.

    “They accused the Federal Government of imposing penalties retroactively and that is why they are keeping sealed lips on the deadline set by the service.

    “The NCS will ensure that all companies that have imported rice above their allocated quotas pay fully the amounts due to the government. Every company that owes the Federal Government must pay what they owe and the country will not lose a kobo to them.

    “The country has an estimated rice demand of between 5.6 and six million tonnes per year out of which the domestic production is put at 3.2 million tonnes per year; creating a short fall of about 2.8 million tonnes, which Nigeria imports from India, Thailand and other southeastern countries of Vietnam, Bangladesh and others. Nigeria is the world’s second largest importer of milled Rice next to Philippines.

    “The country spends about $1.56 to $2.2 billion to import the shortfall of two to three million tonnes of milled rice per year and that is why the collection of Customs duty on every bag of imported rice is essential to the government and officials of the service,” he said.

    The loss of revenue from exceeded import quotas, the official said, is unacceptable. He vowed that the Customs will prosecute any importer that fails to pay the duty it is owing to serve as a deterrent to others.

    Efforts to get the importers’ reactions failed. Olam’s Public Affairs Officer Ade Adefeko and Stallion’s image maker Manny Philipson did not pick their calls and also failed to reply a text message.

     

  • Customs ‘now well equipped to face smugglers’

    Customs Comptroller-Gen-eral Alhaji Dikko Abdulahi has urged his men to use their two newly acquired vessels to fight smugglers, block leakages and stem criminalities on the waterways.

    He said the vessels, christened Customs Pride and Group of Nine, in honour of nine marine officers who died in battle with smugglers in 2012, were acquired to fight smugglers and boost revenue.

    Speaking at their inauguration in Lagos last week, Dikko said with the vessels, marine officers would no longer have reason for not being able to arrest smugglers.

    He said: “Of course, they (marine officers) have no excuse again, if they do not arrest smugglers with these vessels, then it means they are the smugglers.

    “This is part of our six point agenda. We have to do whatever is needful to make sure that we excel and this is part of the equipment we need to perform our duties.

    “Apart from coming to inspect these vessels, I have gone through my commands and informed them that we have to recover the shortfall we had in the past weeks and make sure that we meet the expectation of our target. I am sure we will meet up.

    “We have just concluded the general election and Customs was part of the security agencies that performed in that election. The reason we were part of the election was based on trust. So we have to show that exemplary behaviour on revenue so that when the new government comes, government will know that men of the NCS are doing their best and they can key into the new government as they were in the last government,” he said.

    The newly acquired vessels are fitted with integrated computer-based equipment including in-built radar, wind vein, electronic chart and speed capacity.

    Captain of Customs Pride Mr. Babatunde Lawal, pointed out the features of the patrol boat, saying it has navigational aids and bullet-proof windows, among others.

    “We can read the condition of the wind, we can equally read information about the vessels around us; we have the electronic chat there, and with the information gadgets on board, we can speak with somebody in London; we have similar provision at all our formation so we can as well relate with all of them in terms of emergency and arrests.

    “We may experience resistance from whoever we want to arrest, so there is a device to fix a high calibre gun in the front and at the back.

    “The ship can accommodate 20 people on the average including VIP Cabin and Captain Cabin.

    “We can also get any distress call from anywhere around the world online,” Lawal said.

    Dikko also urged all senior officers to ensure that all revenue loopholes are blocked to make up for the shortfall recorded in the first quarter of the year, which he said was as a result of the just concluded general elections.

    Meanwhile, the Area Comptroller, Federal Operations Unit (FOU) Zone ‘C’ Imo State, Mr Victor Dimka said the unit seized over N500 million worth of goods between January and last month. He said 56 suspects were arrested in connection with 140 seizures made at different areas within his jurisdiction.

    Dimka said the unit recorded 140 seizures with Duty Paid Value (DPV) of N501, 026, 822:00.  The breakdown included 37 seizures made in January, with a DPV of N176,483,600,40 seizures with a DPV of N136,708,650 made in February and 63 seizures with a DPV of N187,834,572 recorded in March.

    According to him, seizures included 108 vehicles, three trucks containing 384 bags of 50kg foreign rice, two trucks of 2,126 cartons of imported frozen poultry products, three trucks of 1,181 pieces of used tyres, three trucks containing 780 bales of textile materials, two truckloads of cartons of foreign vegetable oil with other items such as used hand bags, cartons of foreign beverages and 1,755 pieces of imported foot wear.

    The NCS chief, who reiterated the commitment of his officers and men to rid the zone of smuggling activities, said a total of 56 suspects arrested in connection with the seizures are in detention pending investigation.

    He said the suspects would be prosecuted to deter others.

    Dimka also warned those involved in the illegal business to desist from the criminal act, stating that the NCS is now better trained and equipped with sophisticated tools to fight smuggling to its lowest ebb.

    He also advised members of the public with useful information about smuggling to always make them available to his officers for necessary action, assuring that such information would be treated with the necessary confidentiality they deserve.

     

  • NIMASA blows over N2b on hotels for ex-militants

    NIMASA blows over N2b on hotels for ex-militants

    • It isn’t true, says spokesman

    For allegedly blowing N2 billion in hotel bills for former Niger Delta militants, the Nigerian Maritime Administration and Safety Agency (NIMASA) may have run into trouble with the Ministry of Transport (MoT).

    NIMASA is said to have spent the money in the past four years on keeping the former militants in hotels in Abuja, Port Harcourt and Lagos.

    It was learnt that the Minister of Transport, Senator Idris Umar, his officials and NIMASA account staff were shocked when they learnt of the bills.

    The minister, it was gathered, was furious over the spending, which he considered reckless, considering that over 90 per cent was spent on former militants in exotic hotels.

    The discovery of the huge bills, it was learnt, has caused a row between the management and the staff.

    NIMASA Deputy Director, Public Relations (DDPR) Mr. Isichei Osamgbi denied the story. “Completely false. There is no such thing,” he said.

    But, according to a senior NIMASA official, some of the ex-militants lived, dined and wined in their hotels for over a year.

    An official of one of the hotels in Lagos said the bills rose to over N2 billion because whenever the ex-militants travelled, they refused to submit their keys and returned to their rooms after their trips.

    He said when the ex-militants moved into the hotel, NIMASA did not say when they would leave nor write the management that it would no longer foot the bills.

    “The agency did not write us that they will no longer be responsible for the hotel bills.’’

    Sources at the Ministry of Transport said some senior officials of the agency had, in the past few days, been trying to keep the information relating to the bills from the public, he said.

    A ministry official urged the incoming administration to investigate the matter, saying: “The All Progressives Congress (APC)-led Federal Government and the National Assembly must look into this spending spree by NIMASA. It is a source of great concern to us for agencies under our watch to be spending public funds the way the current management of NIMASA is doing.”

    He said the agency’s conduct goes contrary to the government policy on fiscal reform.

    “The money is public money. The leadership of the agency must be made to account for it. Why should the management allow people who have nothing to contribute to the agency stay in five-star hotels for years?

    “The N2 billion bill is a disaster to public relations (PR) and pure maladministration.”

    Sources at some of the hotels revealed that the ex-militants splurged on expensive foods and drinks.

    “It is disgusting and highly despicable. The management of the agency took advantage of its privileged position to spend public funds the way it liked. Those people enjoyed expensive drinks during their stay in the hotels.

    “There is no doubt that the country is in a financial crisis. The price of crude oil has dropped at the international market and the Federal Government has devalued the naira. Therefore, the N2 billion hotel bill is completely unethical, uncharitable, shameful and selfish. It is offensive to millions of Nigerians. The decision to keep the militants in the hotels is silly, despicable and shameful,” the official said.

  • Operator invests $350m in Lagos port

    APM Terminal has invested over $350 million on facilities at the Apapa, Lagos port. It has also received an award from the Nigerian Ports Authority (NPA) as the “Most Environmentally Conscious Port Operator” in Lagos region.

    The award, according to its Managing Director, Andrew Dawes, was in recognition of the terminal’s achievements in safety and operational best practices.

    Dawes said: “This achievement is made possible through the safety culture of personal responsibility which we practice and embrace, and through the personal commitment of our staff and business partners working together for a safe work place environment,” he said.

    On a company-wide basis, APM Terminals’ Lost-Time Incident Frequency (LTIF) rate declined from 2.53 in 2013 to 1.81 per million man-hours worked in 2014 across the APM Terminals Global Terminal Network, in facilities managed by APM Terminals. The APM Terminals Apapa LTIF rate for 2014 was 0.47 per million man-hours worked.

    He said: “APMT is the largest container facility serving Lagos. With a container throughput of 700,000 TEUs in 2014, APM Terminals Apapa is the busiest container terminal in the West African Region, handling 50 per cent of the nation’s inbound containers.”

    The company, according to him, invested $350 million in the port when it started its expansion programme in 2006.

    “It has resulted in doubling container volumes and increased productivity significantly, with waiting time for vessel berthing eliminated. Regular rail service, running three times per week to the inland cities of Kaduna, 730 km (455 miles) from Lagos, and Kano, 960 km (600 miles) distant, was also established in August 2013,” he said.

  • Customs gets vessels to fight smugglers

    With the acquisition of two new ocean vessels to boost its operation, the Nigeria Customs Service (NCS) is set to fight smugglers.

    The vessels, christened Customs Pride and Group of Nine, have berthed at the Grimaldi Jetty in Apapa, Lagos.

    They are the first to be acquired by the Customs Area Controller, Western Marine Command, Apapa, Yusuf Umar, said the vessels would help in policing the waters, boost revenue and checkmate smugglers.

    The vessels would boost the command’s war against smuggling adding: “Seeing the vessels, he said, on water will send signals to smugglers and oil thieves and others engaged in illegal activities on the waters because we can pursue them with the vessels to any length.”

    Umar said the vessels would be inaugurated soon.

    “We are awaiting further directives from the headquarters on when the Comptroller-General will commission the vessels. This is a landmark achievement by the management of the service,” he said.

    Built in Turkey, the vessels are equipped with communication gadgets including high radar to enable it pick distant signals.

  • Agents to Buhari: diversify economy

    Operators in the maritime industry have urged President-elect Muhammadu Buhari to diversify the economy and reposition the maritime industry.

    The operators under the aegis of Association of Nigerian Licensed Customs Agents (ANLCA) led by their president, Prince Olayiwola Shittu, said the industry’s future is bright with the incoming All Progressives Congress (APC) government.

    He described Buhari’s victory as “the result of patience and perseverance”, saying: “And it is not a surprise either that it’s a close run between two leaders with different orientations. Here is a sitting president, who is thinking in the long term and here is an incoming president who is thinking on impacting on the people in the short term.

    “All the reports of all the committees that have been piling dust, whether seen or unseen, but without any action taking place on them should be looked into. It is not a matter of setting up of another committees but the government should look into the recommendations of past committees and move the industry forward.”

    He was optimistic that the incoming APC government would review the automotive policy and the amount importers must pay on vehicles after May 29.

  • ‘Why Apapa, Tin Can, Warri, other ports are expensive’

    ‘Why Apapa, Tin Can, Warri, other ports are expensive’

    Why are the country’s ports considered the most expensive in West Africa? It is because of the multiple import charges, according to investigations.

    These charges are hindering the government’s trade facilitation programme. But, other sub-regional port, such as that of Cotonou, are thriving.

    Besides, tracing capability and speed, poor yard planning and spacing, online accessibility of pricing and quick debt note reconciliation, among others, also make the ports expensive.

    Others include low level of automation and integration of handling process by government agencies with major stakeholders, such as terminal operators, importers, truck drivers and clearing agents; poor infrastructure investment profile by the government; unstreamlined movement of containers per crane, per hour from ships to stacking position and the trucks.

    Association of Nigerian Licensed Customs Agents (ANLCA) president, Prince Olayiwola Shitu blamed the high cost of cargo processing at the ports on these factors.

    Importers, he said, clear many charges before taking their goods out of the ports, urging the government to address the problem and reduce the cost of doing business at the ports.

    Importers pay Customs duties and levies that are not uniform in most of the nation’s sea ports. Other tariff that make the ports expensive are the seven per cent development levy; one per cent comprehensive import supervision scheme; 0.5 per cent  ECOWAS Trade Liberation Scheme (ETLS); NIMASA/NPA Sea Protection Levy (SPL); haulage cost – transportation per TEU and terminal operator progressive stage charges.

    Importers also pay terminal operator documentation; terminal operator examination; terminal operator scan fee; terminal operator scan loading fee; terminal operator delivery; terminal operator terminal handling and terminal operator labour fees.

    They also pay shipping line demurrage; shipping line agency; shipping line documentation; shipping lines telex release; Shipping line, container; shipping line container deposit fees; terminal operators two weeks additional advance rating period; shipping line two weeks additional advance rating period; shipping line minimum of one month grace for container deposit refund; freight forwarders professional fee – unstreamilined; and several inconsiderate charges at the bounded terminals, among others.

    The President, Lagos Shippers Association, Mr Jonathan Nicol, said the five per cent Value Added Tax (VAT) and the one per cent Pre-Arrival Assessment Report (PAAR) charge were some of the charges.

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

    According to him, the combined charges on one consignment affect shipper’s profit.

    He urged the Federal Government to address industrialists’ cry to reduce the charges.

    According to him, the Federal Ministry of Finance should provide leadership in managing the problems of the shipping community.

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

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

    He noted that it was the duty of the government to encourage private entrepreneurs to contribute to the economy’s growth.

    “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 largely the reasons behind government’s appointment of the Nigerian Shippers’ Council as the economic regulator.

    He condemned the government’s inability to enforce the Coastal and Inland Shipping Act 2003 (Cabotage Act) to enable indigenous ship owners participate in crude oil lifting.

    He said the government should implement the law to allow indigenous shipping companies participate in oil business.

    A maritime lawyer, Mr Dipo Alaka, berated the government for not streamlining the charges.

    “To make matters worse, importers and clearing agents are compelled to pay demurrage on containers for the numbers of days containers remain at the port, even when there is system breakdown caused by the service providers.

    “Importers used to pay for terminal handling charges, container cleaning charges, manifest amendment upon request by an importer, container deposit (refundable) and container demurrage,” he said.

  • ANLCA supports Dikko’s trade facilitation programme

    The Association of Nigeria Licensed Customs Agents (ANLCA) has said it will continue to support trade facilitation programme of the Comptroller General, Nigeria Customs Service (NCS), Alhaji Dikko Abdullahi to boost revenues generation and sustain the economy.

    The Nigeria Customs Service (NCS), ANLCA said, was contributing N30 billion into the federation account before Dikko was appointed. But with the modernisation Dikko has brought into the service, ANLCA said, the revenue generation has increased geometrically from N30 billion to N100 billion monthly.

    ANLCA said it was happy that the Customs boss has trained his officers and men of the service for greater revenue generation and trade facilitation at the nation’s sea ports and border stations.

    Speaking with The Nation, ANLCA’s immediate past Chairman, Tin Can Island Chapter, Mr Kayode Farinto said Dikko is one of the few government officials that key into the transformation agenda of President Goodluck Jonathan and gave the scheme the necessary support.

    Farinto said the allegation that Dikko has betrayed President Jonathan by supporting and sponsoring the candidate of the All Progressive Congress (APC), Gen. Muhammadu Buhari against President Jonathan in the coming presidential polls is unfounded

    Farinto urges President Jonathan, Nigerians and other stakeholders in the maritime industry to disregard the allegation, which he described as baseless and cannot be substantiated.

    ANLCA, and other stakeholders, Farinto said, know the good role the Customs boss has played in ensuring that President Jonathan’s transformation agenda is implemented and carried to the letter at the ports.

    “His role alone has made Mr. President’s tenure to be the best in the area of revenue generation and trade facilitation, even some of us that are Dikko’s critics gave him kudos,” he said.