Despite everything being done to make them attractive, the nation’s ports are still the most expensive in West Africa, it has been learnt.
Finding showed that the cost of doing business at the ports remains high because of multiple charges and operational technicalities.
Importers pay different customs’ duties and levies among which are 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.
They also pay terminal operator documentation; terminal operator examination; terminal operator scan; terminal operator scan loading; terminal operator delivery; terminal operator terminal handling and terminal operator labour.
Shipping line demurrage; shipping line agency; shipping line documentation; shipping lines’ telex release; shipping line container; shipping line container deposit; terminal operators’s two weeks additional advance rating period; shipping line’s two weeks additional advance rating period; shipping line minimum of one month grace for container deposit refund and freight forwarders’ professional fee – unstreamlined.
The charges, according to stakeholders, are hindering the government’s trade facilitation programme.
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.
Association of Nigerian Licensed Customs Agents (ANLCA) President, Prince Olayiwola Shittu said importers were subjected to many charges before taking their goods out of the ports. He urged the government to reduce the cost of doing business at the ports.
Lagos Shippers Association president Mr Jonathan Nicol said the five per cent Value Added Tax (VAT) and the one per cent Pre-Arrival Assessment Report (PAAR) charge was some of the charges.
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 government to address industrialists’ cry to reduce the charges.
He said 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 to 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.
The government, he said, 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.
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