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Tag: Importers

  • Importers, agents kick as shipping company increases charges

    Importers, agents kick as shipping company increases charges

    Importers and clearing agents operating at the nation’s ports have kicked against the increment in charges by leading French shipping company, CMA CGM, stating that the increment will add to the economic burden being passed on to the end users of the imported goods across the country.

    The CMA CGM has announced an increment in its charges, blaming it on the February adjustment of Port & Marine Fees by the Nigerian Ports Authority (NPA), 32 years after, the Authority had been operating a fixed, unsustainable, unproductive and unacceptable tariff template affecting its operations.

    CMA CGM, in a mail to Importers stated: ”We are writing to inform you of a review of our charges following the recent increase in Port and Marine charges implemented by the Nigerian Ports Authority (NPA), which came into effect on the 1st of March 2025.”

    As a result of such adjustment, we find it necessary to update our tariff structure to account for the new cost environment, effective 10 March 2025. “Under the review, a 20ft container will now be charged N145,327 while a 40ft container will attract N290,654.

    Before the new increment, investigation revealed that importers were paying N136,080 on 20ft container and N204,120 on 40ft container.

    Also, findings have shown that in 2022, importers and their clearing agents were paying N100,800 and N152,200 on 20ft and 40ft containers respectively.

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    But a 20ft Reefer container nowl attracts N145,327 while a 40ft Reefer container attracts N290,654. “If you have any questions or require further clarification, please feel free to contact our customer service team at Nga.service@cma-cgm.com. Thank you for your understanding and continued support.” Reacting to the price review, the National President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Frank Ogunojemite, stated that the increment will cripple the purchasing power of the common man and further increase the cost of doing business at Nigerian ports.

    Ogunojemite said: “Shipping and terminal charges are critical components of the logistics and supply chain management process. Increases in these charges can have far-reaching effects on various stakeholders, including having effects on Importers and Exporters via Increased costs.

    “Higher shipping and terminal charges lead to increased costs for importers and exporters, which will be passed on to consumers. Businesses may experience reduced profit margins due to higher logistics costs. This can make Nigerian businesses less competitive in the global market. The recent increment by CMA CGM will lead to higher prices for goods and services in Nigeria while making consumers experience reduced purchasing power due to higher prices.

    “This increment can also contribute to higher inflation rate in the country, forcing businesses to reduce staff or close operations due to increased costs. NPA told us that the 15 per cent hike will not lead to additional charges at the ports, but now the CMA CGM has blamed its recent increment on the hike in port tariff by the NPA.

    “NPA must look into this price increment by the shipping companies before other shipping companies follow suit.”

    Also speaking on the increment, a former National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Olayiwola Shittu blamed the Federal government on the increment by CMA CGM.

    “The fault is from the Federal government. There is no way NPA will increase its charges by 15 per cent and it will not affect shipping charges. Now, CMA CGM has announced an increment; expect other shipping companies to follow suit. And this will have far-reaching consequences on importation because the cost of clearing cargoes from the ports will go up.

    “With the situation we currently find ourselves economically, should we be talking about prices increment here and there? It’s quite unfortunate because the masses suffering will keep increasing,” Shittu said.

    Also, a motor vehicle importer, Obafemi Adebiyi said, there was an urgent need for the NPA to hold meeting with the shipping companies so that Nigerians will no continue to pay through their nose.

  • Importers, clearing agents, others kick against duty hike

    Importers, clearing agents, others kick against duty hike

    Stakeholders in the maritime industry have decried the new Customs duty exchange rates, labeling it as oppressive and anti-people

    The stakeholders who spoke with The Nation in separate interviews condemned the hike in import duty by the Nigeria Customs Service (NCS), saying it will lead to higher inflation and further weaken the purchasing powers of Nigeria’s impoverished masses.

    They emphasised the need to consider economic implications before implementing fiscal and monetary policies, aligning with the Renewed Hope Mantra of President Bola Tinubu’s administration.

    The Federal Government had a few days ago, through the Central Bank of Nigeria (CBN) increased the exchange rate for cargo clearance from N952 to N1,356 per dollar. This effectively translates to a spike in payable import duty.

    The latest hike is coming weeks after the rate was increased from N783 to N952 per dollar.

    It was in November last year  that the exchange rate for cargo clearance was raised from N757 per dollar to N783 per dollar, representing a 3.4 per cent increase, and was later raised from N783/$ to N952/$ in December

    The former President, Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayieola Shitti said the increase is bad because it will translate to more money for the Federal Government but more difficulty for Nigerians.

    He said: “In layman terms, it simply puts more money into the coffers of Customs and creates an increase in inflationary rate. It is a bad omen for the importers, clearing agents, port users, stakeholders, operators and maritime business.

    “As we speak with you, many importers and their clearing agents have several containers and goods to clear from the port that are still there because of the sudden increment.

    “Many of us just woke up to this unpalatable rate and up till now, we have not been able to pay because the duty payable just sky-rocketed. So, it has become a big problem for clearing agents and the importers.”

    An importer, Gbolahan Adegboyega argued that the new Customs duty regime would further fuel smuggling and the diversion of cargoes meant for the Nigerian market to the ports of neighbouring countries.

    “Some cargoes have been trapped at the port and I don’t see how they are going to break even because of the amount they have to pay on them as duty. No importer can break even with this new exchange rate,” he said.

    A maritime lawyer, Muhammed Oluwaseyi faulted Customs officials for arbitrary allocation of values to imported items.

    According to him: “Nobody is in charge of the ports, nobody is listening to each other, everyone is on their own. If one has a problem with Customs, whom do you go to? The Comptroller-General of Customs is there but he is there in Abuja.”

    Oluwaseyi said the import duty hike will not only fuel inflation but accelerate the smuggling of goods across Nigeria’s frontiers.

    Findings have shown that the recent hike in Customs duty exchange rate has been met with overwhelming outcry by the stakeholders who spoke with our correspondent.

    The Federal Government had on Friday, through the Central Bank of Nigeria raised the exchange rate for cargo clearance from N952/$ to N1.356 per dollar. This effectively translates to a spike in payable import duty.

    The Centre for the Promotion of Private Enterprise (CPPE) also expressed grave concerns over the significant upward revision of the exchange rate for import duty computation.

    The CPPE’s CEO,  Muda Yussuf said the adjustment, soaring from N952 to N1,357, marks a staggering 42.5 per cent increase, a move, he said, that could have profound implications for businesses across all sectors.

    Yusuf lamented that the timing of the import duty rate hike, amid the economic challenges, amplifies the difficulties faced by investors, particularly those in the real sector.

    He warned that the consequences of this action could exacerbate inflation as production and operating costs escalate.

    Read Also: Customs vows to clampdown on dubious importers, clearing agents

    Yusuf lamented that the ripple effect on the vulnerable segments of the population may further plunge them into poverty, aggravating cost-push inflation.

    Yusuf called for a reconsideration of the rate hike by the CBN, emphasising the potential collapse of numerous businesses already teetering on the brink.

    Yusuf said he found the policy difficult to justify, especially in the context of the multifaceted challenges businesses currently face.

    He said: “The drastic upward review of the exchange rate for the computation of import duty from N952 to N1357 would have a devastating effect on businesses across all sectors. This is a whopping 42.5 per cent increase.  This is like the last straw.

    “Businesses are yet to recover from the shocks of the new round of currency devaluation resulting from the sudden unification of the exchange rate which has driven the official exchange rate to about N1400.

    “It is double jeopardy for the investors across all sectors especially those in the real sector.  This action will further fuel inflation as production and operating costs get escalated.  The vulnerable segments of the population will be further impoverished as cost push inflation gets exacerbated.

    “CPPE appeals to the CBN to reverse this rate hike in the interest of the already impoverished segments of our society and the numerous businesses that are already on the verge of collapse.”

    Also, a freight forwarder, Eugene Nweke, expressed reservations about the potential ramifications of the move by the CBN on the nation’s economy.

    He highlighted global concerns discussed at the World Economic Forum (WEF) where the drop in global trade volumes during the 2022/2023 period took center stage.

    Nweke emphasised the need to consider economic implications before implementing fiscal and monetary policies.

    He argued that neglecting these concerns demonstrated poor administrative sensitivity, calling for a systemic reevaluation of monetary policy tools to ensure fair market practices.

    Nweke also raised questions about the CBN’s role in duty exchange rate increments, speculating that it might be a deliberate strategy for revenue generation.

     He argued that the Coordinating Minister should conduct an unbiased system study within the nation’s international trading climate to provide recommendations for policy reform.

  • Customs raises exchange rate for importers

    Customs raises exchange rate for importers

    These are not the best of times for importers and clearing agents operating at the nation’s sea ports. They are to pay more on every good they import going by new exchange rate regime approved for the Nigeria Customs Service (NCS) by the Central of Nigeria (CBN).

    Under the apex bank’s new directive, foreign exchange rate to be used by the NCS for the clearing of imported goods, including vehicles through the ports has gone up.

    The exchange rate rose from N770.88 to N783.174 per dollar (additional N12.29 to every dollar) in the process of clearing goods from the ports.

    Stakeholders in the maritime industry told The Nation, over the weekend, that with the new rate, which was contained in the Customs’ official website, the cost of imported goods in the market will rise, especially, with the approach of the festive season.

    Some of the Importers, who spoke with this newspaper, complained that within the last three to four months, the CBN had reviewed Customs’ duty consistently.

    They urged the apex bank to look into the pains the upward adjustment would bring on Nigerians.

    A member of the Nigerian Importers Integrity Association (NIIA), Albert Samson, said the time has come for the CBN to allow importers breathe by providing a stable official exchange window for them to do their legitimate business and boost international trade.

    Samson decried the situation, pointing out that the country relies heavily on imported vehicles and goods to feed and move the people across the country.

    Few days ago, the Comptroller-General (CG) of the NCS, Bashir Adewale Adeniyi, admitted that the floating exchange rate was the major cause of the surge, adding that nothing had changed in Customs duty.

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    But the former President of Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shitty, explained that the balance of trade influences currency exchange rates through its effect on foreign exchange supply and demand.

    Shittu said: “When a country’s trade account does not net to zero, that is, when exports are not equal to imports, there is relatively more supply of or demand for a country’s currency. This influences the price of that currency at the international market.

    “Currency exchange rates are quoted as relative values; the price of one currency is described in terms of another. For example, one $1 might be equal to three Saudi Arabia Riyad.

    “In other words, an American business or person exchanging dollars for Riyad would buy three Riyad for every dollar sold, and a Nigerian would buy $1 for every N800 sold if that is the official exchange rate.”

    The rate was adjusted from N422.30/$1 to N589/$1 and shortly after jerked up to N770.88/$1.

    Clearing agents and freight forwarders are mostly affected by this adjustment. This is because those who have been paid by importers at the old exchange rate to clear their cargoes out of the seaports will have to call for upward adjustment.

    An importer, Folagbade Adesanya, said the increment will affect vehicle clearance, saying, however, that clearing agents are engaging the importers to forestall disagreement.

     ”The CBN has increased the dollar exchange rate, from N422.30 to N589.45 and N770.88. Now, we are at N783.174 to a dollar.

    “What it means is that if clearing agents have a debit note that has not been paid on the system or Pre-Arrival Assessment Results (PAAR) or they have given you the value and you have not captured, it has affected your business,” Adesanya said.

  • Importers are greatest wreckers, says Ogbeh

    The Minister of Agriculture, Audu Ogbeh has declared importers are the greatest wreckers of Nigeria’s efforts to promote patronage of locally produced products.

    Ogbeh made this known in Abuja on Tuesday when he appeared before the National Assembly Joint Committee on Agriculture to defend the ministry’s budget.

    He said that international merchants such as importers of such products as toothpick, sugar, vegetables, and pencils were frustrating government’s efforts at ensuring that Nigerians bought made in Nigeria goods.

    “We are a nation of importers. Toothpick every year costs us 18 million dollars, tomato paste costs us 400 million dollars.

    “Meanwhile, a basket of tomatoes is less than N2, 000. The farmers are losing money because the processors do not have enough funds to set up factories.

    “Two factories have started off. I am sure by the end of next year we can comfortably tell the importers of tomato paste to stop.

    “Unfortunately, when you do you make enemies; even the importation of rice that we are trying to reduce is creating for us enemies, heavy enemies, people, who can kill if they have the opportunity because you are spoiling their business.

    “Nobody should take this lightly. These guys have hijacked the economy of this country.

    “They have taken it hostage and they have no intention of giving up. This regime is unpopular in part because it is trying to cut down imports and transfer the wealth to another thing.

    “I know what I am saying because I have been in this business for 41 years. We import sugar, handkerchief, toothpaste, even pencils.

    “I read in the newspapers recently that the Champagne Ambassador in Nigeria said Nigerians love life. We are the biggest consumers of champagne on planet earth. More than the French, who made it.

    READ ALSO: Good news from Audu Ogbeh

    “It will take a strong government to cure Nigeria of this problem,” he said.

    He said it was unfortunate that some Nigerians, who had developed so much appetite for foreign goods, were finding it difficult to begin to patronise locally produced goods.

    “There is made in Nigeria rice in super markets across the country, but I have no sympathy for those who insist that it must be foreign rice.

    “I have no cure for their disease. If they prefer foreign rice I cannot stop them,” he said.

    He said it was unfortunate some reasons given for foreign produce was borne out of the need to show class and not because the products were better than locally produced goods.

    The minister said that the country could pride itself as one of the largest producers of rice and yam in Africa.

    He promised that the Federal Government would begin to consider the possibility of exploring cocoa and other cash crops.

  • Bonded terminal agents, importers protest alleged Customs extortion

    Some importers and agents operating in Clarion Bonded Terminal Alakija, Lagos have protested alleged extortion and victimisation by some customs officers posted to the terminal.

    The protesters, who later stormed the Clarion Terminal 1 to register their grievances, were denied entry into the premises.

    They alleged collection of illegal fees from them, including the opening of a watch list for containers, and the reintroduction of double examination of containers contrary to a directive from the Customs Comptroller General.

    The protesters said the Customs action was impeding business and movement of goods.

    One of them, Ifeanyi Paul, alleged that N100, 000 was being demanded for each container to “remove our container from the list. That is extortion.”

    Okechukwu Ogbonna, another protester, said he has lost over N10 million to the customs’ demand.

    “We are protesting against double examinations, an action since abolished by customs management.

    “What we are seeing here is someone using government officials against competitors.

    The Customs Officer in Charge (OC) of the terminal, Peter Olaniyan, could not be reached for his reaction.

    However, the Staff Officer, Kashim Z.M, a Chief Superintendent of Customs, who volunteered to speak, denied any knowledge of the protest.

    He said: “What did they say they were demonstrating over?

    “I am not aware of any protest held outside this premises. Customs is not aware.

    “As I am talking to you, most of the agents are out there, most of our men are outside carrying out examination.

    “If agents have any problem, they come to us here directly. What I am trying to let you know is that at least if there is anything, they will come to me in my position as the Staff Officer. I am very close to the agents.

    “They are free to come to me any time. But no one has ever complained to me.

    “I have not received any complaint from any agent. If they have complained to the headquarters, they you should go to Tin Can to go and verify.”

    On allegation of double examinations at the terminal contrary to directives from the CGC, he noted: “I don’t have knowledge of any double examination here.

    “What happens is that agents come here, they prepare their documents, they do the assessment for them, they collect values and they go and make payment through the back whatever declaration they have made.

    “They bring back the documents, once the documents get here, they go for examination to confirm what they declared is correct.

    “If it’s a container, we open it and check based on the invoices they have paid. Once it is certified, then we write our report, pass it to the releasing officer and that is it.”

    On the N200, 000 charged each vehicle as against the N160, 000 the protesters claimed other terminals pay, Kashim denied it, stating the charges are uniform based on directives from Abuja.

     

  • Shipping firms plan N30b refund to importers, agents

    On-going negotiations between shipping companies and the Nigerian Shippers Council (NSC) will lead to refund of over N30 billion to importers and clearing agents, it was learnt at the weekend.

    The negotiation, it was gathered, was based on the fear that the Supreme Court may rule in favour of the Council in a suit challenging the alleged imposition of arbitrary charges on users of shipping services.

    No less than N600 billion may be refunded by the shipping firms, being accumulated levies collected over the years.

    The Court of Appeal and the Federal High Court had earlier given judgment in favour of the Nigerian Shippers’ Council and slammed a N1 trillion fine on the shipping companies and terminal operators.

    Speaking with The Nation in relation to the meetings, the Vice President, Association of Nigerian Licensed Customs Agents (ANLCA), Dr Kayode Farinto, said the Executive Secretary of the Council, Mr. Hassan Bello, remains committed to protecting the interests of users of shipping services in Nigeria. On the allegations of unauthorised levies imposed on shippers by terminal operators and ship owners, Farinto said the justice system in the country works slowly, but added that the shipping companies are making moves to shield themselves from the sledge hammer of the law. He expressed confidence that the negotiation will  lead to resolution  of issues.

    Although the ANLCA chief lamented the slow dispensation of justice in Nigeria, he said the delay was responsible for the inability of the NSC to speedily resolve issues bordering on reversal of illegally collected charges.

    Farinto reiterated that the court of first jurisdiction had awarded a charge of N1 trillion against the  operators and shipping companies on the excess charges collected from importers and agents within the period they increased terminal charges and shipping fees without due consultation with relevant government agencies.

    “The justice system is very slow. The court had determined at the first instance that the illegal levies amounted to over N1 trillion and money was to be paid to the system before it went to the Court of Appeal. While the case is still pending, the amount of the illegal levies collected so far is in the region of N7 trillion.”

    Shippers Council, he said, was not the one that went to court; they took the agency to court. “I do agree that the amount to be paid by the shipping companies can be negotiated through consultation and dialogue because there is no way you can unilaterally or arbitrarily impose charges and say this is my charge, it must be negotiated and approved by the agencies representing the government at ports,” he added.

    A senior official of NSC, who craved anonymity, said the council was open to out-of-court settlement, but added that the most important thing is for the stakeholders to be carried along and the need for the shipping companies to obey the laws of the country.

    A Federal High Court sitting in Lagos had in a 2014 judgment declared that the Shipping Line Agency Charges (SLAC) levied and collected from Nigerian shippers by shipping companies since 2006 was illegal.

    “The Court, therefore, ruled that the shipping companies should account and pay to Nigerian shippers all monies or fees charged and collected since 2006 as SLAC from shippers or users of shipping/port related services from 2006 to date, which ran into several billions of naira.

    “In a landmark judgment by Justice Buba Ibrahim, sitting at the Federal High Court, Lagos, in Suit No. FHC/CS/1646/2014 – Alraine Shipping Agencies (Nig) Ltd & ORS Vs Nigerian Shippers’ Council and Suit No. FHC/CS/1704/2014 – Apapa Bulk Terminal Ltd & ORS Vs Nigerian Shippers’ Council, he affirmed the appointment of the Nigerian Shippers Council as the Economic Regulator of the ports and dismissed the claims of shipping companies and the terminal operators.

    “Pursuant to the appointment of the Nigerian Shippers Council as the Economic Regulator Government, in line with the executive powers of the president in February 2014, the NSC issued notices to both the shipping companies and terminal operators to reverse all illegal charges levied on Nigerian shippers,” the official said.

    Dissatisfied, the shipping companies and the concessionaires, he said, filed an appeal against the council at the Appeal Court in Lagos in 2015.

    “The Court of Appeal also dismissed the case brought against the Nigerian Shippers Council by the Seaport Terminal Operators Association of Nigeria concerning shipping charges hence, the current out-of-court negotiation by the shipping companies with NSC.

    “They have over N600 billion to refund, but the amount they have to pay may not be more than N300 billon or more,” the NSC official said.

  • Importers fault revenue target for NCS, FIRS

    Importers and the Lagos Chamber of Commerce and Industry (LCCI) have faulted the revenue targets given by the Federal government to the Nigeria Customs Service (NCS), Federal Inland Revenue Service (FIRS) and other government agencies at ports.

    One of the importers and a member of the group, Chief Michael Adejare said there were negative manifestations in the manner of import valuation by the Customs.

    “Reports reaching the chamber indicate many instances of upward review of values of imports in complete disregard to the values of invoices of such imports.

    “Importers have been made to pay import duty and other charges that are far beyond what they ordinarily should have paid. Many investors have suffered untold hardship as a result of this practice, especially when there is no effective dispute resolution system in place,” he said.

    Adejare said the idea of giving targets to revenue-generating agencies could result in some unintended consequences.

    In view of dwindling crude oil revenue, The NCS and the FIRS, have been given  targets.

    Another importer, Dr Badmus Solomon said there is a risk that best practice principles will be compromised by the agencies in their desperation to meet targets.

    He noted that the downward trend of oil prices in the international market is a setback for the economy.

    Solomon said the scenario of sliding oil price has implications for the capacity of the government to meet their statutory obligations.

    He said: “On top of that, we are struggling with the problem of crude oil theft, which is taking its toll on output. For an economy that is 95 per cent dependent on oil for its foreign exchange earnings and 85 per cent dependent for revenue, this development should be a cause for concern,” he said.

  • Importers, truck owners groan over Apapa gridlock

    Truck owners and importers have urged the Federal Government to address the Oshodi/Apapa Expressway gridlock to alleviate their suffering.

    According to them, the gridlock on the Apapa port access road is affecting haulage services and other businesses.

    Association of Maritime Truck Owners (AMATO) President Chief Remi Ogungbemi said despite the efforts of the government and agencies such as Nigerian Ports Authority (NPA), Navy, Army and the police, the gridlock remained intractable.

    According to him, the traffic congestion has become a national embarrassment and a solution to it should be the priority of those in government, terminal operators and other stakeholders in the maritime industry.

    “Apapa traffic has become a perennial problem with no solution in sight. We have had orders from the Nigerian Navy, NPA, Nigerian Shippers’ Council and other agencies, to no avail. The trucks are still there for days and weeks; either waiting to be loaded or to drop empty containers. My members are the ones at the receiving end; as they waste several man-hours daily.

    “Their trucks could no longer make several trips a week as they managed to go only a trip per week,” Ogungbemi told The Nation.

    A vehicle importer, Mr Raphael Lawson, said the situation was affecting the presidential directive on Ease of Doing Business at the ports. He urged the agencies at the ports and the stakeholders to stop the blame game and come up with solution to the problem.

  • Importers with Chinese Yuan invoices to pay less

    •Bankers Committee backs currency swap

    Importers will pay less if they get Renminbi invoices from Chinese exporters, the Central Bank of Nigeria (CBN)-led Bankers’ Committee said yesterday.

    Rising from its meeting in Lagos, the committee, comprising commercial and merchant banks’ Chief Executive Officers, said the discount was meant to encourage importers to go for Renminbi instead of dollars. This, it said, will help protect Nigeria’s foreign exchange reserves, which are in dollars.

    The need to keep the naira stable prompted the CBN to sign the bilateral currency swap agreement with the People’s Bank of China (PBoC) worth about $2.5 billion.  In local currencies, the swap is worth 15 billion Renminbi (RMB) or N720 billion. The three-year renewable deal will  allow  for  the  direct exchange of RMB and naira for the purpose of trade and direct investment between the two countries.

    Stanbic IBTC Bank Managing Director Demola Sogunle, who spoke at the end of the Bankers’ Committee meeting, said: “Specifically on the Renminbi and what is in it for importers, the idea is that the CBN is encouraging importers to receive invoices in Renminbi instead of dollars. And one of the incentives is that there is percentage spread, which is yet to be determined. It is actually given to any importer that is bringing Renminbi invoices for settlement, instead of dollar invoices.”

    Such importers will avoid 10 per cent mark-up prices usually associated with dollar importation. China remains Nigeria’s biggest trading partner. The currency swap deal is expected to help small and medium enterprises grow their businesses.

    Sogunle said that in terms of the overall cost, importers who submit Renminbi invoices will pay less. “So, when you look at the overall cost, in terms of naira, if you bring Renminbi invoices, it is going to be cheaper for the importer coming to the CBN to get foreign currency, which in this case will be Renminbi. The importer will have to bring lesser amount of naira. If he goes ahead to bring from the same supplier, based in China and makes the invoice in dollar, it is going to cost more, in terms of the naira amount he is going to use to get the foreign currency,” he added.

    The logic is that “if we are able as a country, to bring in machinery and equipment, without depleting the foreign reserves, the external reserves will not be under threat”.

    Sogunle also said invoices that are domiciled in Renminbi do not affect the foreign exchange reserves, now at $48 billion. “And do not forget, let’s link to what we are talking about in terms of external reserves, the external reserves will not be under threat. There is 15 billion Renminbi in place, in this bilateral currency swap. We are in a very good position, and that is why it is important to encourage importers to bring invoices in Renminbi, instead of dollars”.

    Also speaking, CBN Director, Banking Supervision, Ahmad Abdullahi, said the drop in inflation rate to 11.61 per cent in May and 448 billion in foreign reserves as well as 2.44 per cent projected Gross Domestic Product (GDP) growth for 2018 are all positive indicators for the economy.

    He said the CBN had enough arsenal to keep the naira stable and is prepared to ensure stability in the foreign exchange market.

    United Bank for Africa Group Managing Director/CEO Kennedy Uzoka also assured that the CBN was strong enough to keep defending the naira. He said the regulator made it possible for all the banks to sell Personal Travel Allowance and Business Travel Allowance to travellers at all their branches, including persons that do not have bank accounts with the lenders.

    “The CBN has been intervening in all the markets and has the capacity to defend the naira,”Uzoka  said.

    According to the PBoC, the swap is to facilitate  bilateral  trade,  direct  investment,  and  safeguard financial market stability. The trade is expected to reduce the demand for United States dollar by Nigerians importing from China and consequently  strengthen  the  value  of  the  Naira.  The deal will reduce certain barriers  for  Nigerian  importers  of  goods  from China   and   reduce   the   cost   of   transactions   in   multiple currencies.

    China  has  been  one  of  Nigeria’s largest  import  partners  over  the  last  five  years, with  imports from  China  accounting  for  an  average  of  20.95 per cent  of  total imports   between   2013   and   2017.

    Imports   from   China increased by  21.16 per cent  from  N1.48  trillion in  2013  to  N1.79 trillion in 2017. Nigeria’s exports to China averaged just 1.50 per cent  of  total  exports  over  the  period.  Exports  to  China increased  by  28.99 per cent  from  N171  billion  in  2013  to  N220.57 billion in 2017.

  • Publish vehicles charges, importers urge Customs

    How much does it cost to clear a vehicle at the ports? This is the question terminal operators, importers and Nigerians in Diaspora are demanding an answer to from the Nigeria Customs Service (NCS).

    They have asked the Customs Comptroller-General (CCG), Col. Hameed Ali (rtd), to publish the cost in newspapers and on the website.

    The measure, they said, would end excessive human traffic and corruption at the ports.

    Customs, importers said, must collaborate with operators and shipping firms to arrive at a uniform tariff to reduce human contact and boost efficiency at the ports.

    They noted that the Nigerian Ports Authority (NPA) and the Nigerian Maritime Administration and Safety Agency (NIMASA), among others, should display their charges on their portals.

    The publication, they said, would help the Federal Government to plug revenue leakages and make Nigerian ports the leading ones in West and Central Africa.

    An importer, Mr. Festus Akande, said no one could predict what importers would pay when they bring goods to the ports. He urged the government to address the problem to improve service delivery and generate more revenue.

    The ports, he said, were competing with others in the sub-region, fueling the need to make charges public.

    Akande urged the NPA management to design a plan for a model terminal to promote competition, boost efficiency and make the ports attractive. He noted that in the last 10 years, the NPA operated the landlord model of port operation without the much-needed competition among private operators.

    “Nigeria loses cargoes to ports of neighbouring countries because many importers don’t know the actual amount they are going to pay when they bring their goods to the ports.

    “The era of imposing arbitrary charges that have often been described by importers, exporters and clearing agents as uncharitable will end if all the agencies and the operators are mandated by the Federal Government to make their charges public.

    “NPA as the landlord must check excessive charges against importers to reduce prices of imported goods and make the ports competitive and attractive for business.

    “We want Customs and agencies operating in the ports which include the NPA, the  Plant Quarantine, NIMASA, and others to up their game,” Akande said.

    A senior official of one of the terminals in Lagos, who craved anonymity, bemoaned high rate of human interface in Customs offices at the ports and urged Col Ali to address the issue.

    When The Nation visited the Apapa port, clearing agents were everywhere, moving with their files from one office to another for most of the businesses that can be transacted online without leaving the comfort of their offices for the port.

    Col. Ali, importers said, must curb the excesses of his men and ensure the adoption of a duty benchmark on fairly used vehicles, popularlly called Tokunbo.

    “For years, the Customs has operated without a benchmark for used vehicles. The agency fixes duty at will, depending on who is importing.

    “Some officers are exploiting the absence of a clear-cut policy on benchmark to extort importers and their agents, despite Ali’s warnings against corruption.

    “For selfish reasons, some Customs officers are also working against making the ports attractive for business. Therefore, the Federal Government needs to design anti-corruption policies that will stem the loss of cargoes from Nigeria to neighbouring countries.

    “The absence of a benchmark has created opportunities for Customs officials to take bribes from importers and their clearing agents.

    “Despite the age limit imposed on imported Tokunbo vehicles, it is sad that no Nigerian bringing any type of the approved vehicle into the country knows the actual amount he or she is going to pay as Customs duty.

    “But the situation is not so in our neighbouring ports. At Apapa and Tin Can ports, direct interaction between clearing agents and Customs officials is high since most clearing documentation on used vehicles are not processed online,” the source said.Clearance documentations, according to the source, are submitted physically.

    The source continued: “This high level of corruption in our ports will affect the efforts of the current management of NPA to reposition the ports for better efficiency and the hub in the sub-region. Corrupt practices are also jeopardising the ability of the NSC to secure commercial opportunities in cargo transport to nearby landlocked countries.

    “Despite the successful ports concession programme, the concession benefit is hampered by corruption, poor infrastructure and the high cost of doing business.”

    The source blamed  the ports’ bureaucracy for the problem, saying: “The bribery takes two forms, for example: Collusive corruption,1 where the clearing agents and Customs officials benefit from an illicit deal, such as paying to evade duty, and coercive bribery or extortion, which benefit only corrupt Customs official.”