The Nation Newspaper

Tag: Importers

  • ‘Importers, agencies should collaborate on ADR’

    Chairman, Chartered Institute of Arbitrators (CIArb), Nigerian branch, Mrs Adedoyin Rhodes-Vivour, has urged importers, terminal operators and government agencies at the ports to collaborate and embrace the Alternative Dispute Resolution (ADR) option in resolving maritime cases, and move the sector forward.

    She urged stakeholders and operators in the maritime sector and the youth in  other  fields, to seek and explore opportunities that abound in arbitration.

    Speaking at this year’s CIArb, Nigerian Branch Annual Conference in Lagos, themed: “Strengthening the Building Blocks of Arbitration in Africa”, Rhodes-Vivour said there was need for private and public institutions to collaborate in the interest of furthering arbitration and the ADR as the preferred means of dispute resolution.

    “We are committed to advocating a conducive environment in our jurisdiction for the practice of ADR. The institution provides education and training for arbitrators, mediators, and adjudicators. It also acts as a global hub for practioners, policy makers, academics and those in business supporting the global promotion, facilitation and development of all ADR methods,” she said.

    Rhodes-Vivour, who noted that there was a growing number of African  arbitration centres across the region, said visionary governments were developing their counties into arbitration hubs. This is because the realisation of an internationally-recognised arbitration hub sends the right message to investors.

    “A perception of political and legal stability, a stable and transparent judiciary, a secure and safe environment give investors the confidence to invest. We are committed to advocating a conducive environment in our jurisdiction for the practice of ADR,”she said.

    Lagos State Attorney-General and Commissioner for Justice, Mr Adeniji Kazeem, said the state had embraced ADR by establishment of Citizens Mediation Centres (CMCs), Multi-Door Court House and Arbitration Court.

    He said Lagos was being made a Centre of Arbitration, as courts are not sufficient to  resolve all disputes.

    “We must look for other methods of resolving disputes; the platform, Lagos government has provided. Lagosians should use them – ADR. Lagos has been commended for ease of doing business; ease of doing business also means ease of resolving disputes,” Kazeem said.

    The Attorney-General, who noted that over 40,000 cases had been handled by the CMCs, said arbitration made dispute resolution faster.

    In her opening remarks, Chairperson of the Conference Planning Committee, Mrs Folashade Alli, said all factors militating against ADR must be removed.

    Alli, a Chartered Administrator, called for harmonisation for Arbitration bodies to make the country a hub, adding that issues of security and other logistics had to be taken care of. She said anybody, not just lawyers, can take on the role of an arbitrator.

  • SON warns importers against incessant false declaration

    SON warns importers against incessant false declaration

    The Standards Organisation of Nigeria (SON) has warned importers against making false declaration.

    Its Director-General Osita Aboloma, gave this warning during a stakeholders’ forum on the ease of doing business.

    Aboloma, represented by the Director, Inspectorate and Compliance, Mr. Bede Obayi, said it was important for importers to make use of the trade facilitation initiatives and opportunities that the Federal Government had provided.

    While lamenting that most importers falsely declare what they import, he said importers must desist from making false declaration.

    Aboloma said: “What you say you are bringing in as declared with our independent accredited firms overseas must be what you are bringing in at the point of entry so that we will give these products express entry into the country.

    “This is why we are organising this forum to make stakeholders in the import business aware of the role they have to play to achieve the Federal Government’s ease of doing business mandate.

    “We want to make sure that they continue to do things right. Importers have a responsibility in the ease of doing business and we want them to talk to us and tell us where the shoe pinches.”

    The SON DG said the agency had put the standards operating procedures for exporters, which will make business easy for them while they give value to consumers in terms of service delivery.

    “We cannot allow non-compliant trade in Nigeria. Anybody that wants to import must do that according to our conformity assessment programmes,” Aboloma said.

    He pointed out that the agency had ensured that all its operations were properly documented and uploaded on its website for easy access.

    He noted, however, that even though the agency had ensured that made-in Nigeria cables came out as the best in the world, people were cloning already known brands and branding them as made-in-Nigeria.

    “This is not good for local production. Imported goods cannot be branded as made-in-Nigeria goods. We are proud of our local products and we want to export them to the world,” he said.

    The Association of Nigerian Licensed Customs Agents National Publicity Secretary, Dr. Kayode Farinto, noted that the ease of doing business cannot be feasible with the poor infrastructure at the ports.

    He said: “I expected the Federal Government to declare state of emergency on our roads.  A lot of things are happening while the government is looking the other way. The Federal Government wants to achieve ease of doing business, but they are putting the cart before the horse. There are things that need to be done before we can achieve ease of doing business.”

  • Customs, importers quarrel over seized containers

    Customs, importers quarrel over seized containers

    Is it proper for Customs officers to seize containers shortly after being cleared by their colleagues at the Lagos Ports? This is the puzzle importers are asking the government to unravel following what happened at the ports last week.

    Some cargoes were said to have been seized at the ports’ gates after being cleared.

    The importers are claiming that the Nigeria Customs Service (NCS) Federal Operations Unit (FOU), Zone ‘A’, Ikeja is carrying out such operation in defiance of a presidential directive dismantling all illegal checkpoints nationwide.

    Besides, the FOU, they allege, is violating a circular by the Deputy Comptroller-General (DCG) on Enforcement and Investigations, A. Dangaladima, stating that only the two check-points at Agbara and Gbaji on the Lagos-Badagry-Seme Road were approved.

    The circular reads: “For the avoidance of doubt, it is hereby emphasised that checkpoints mounted outside 40km to the border are illegal while information patrols outside this point should not last more than 24 hours at any given time.”

    “The 40km radius applies to the borders and consequently there should be no checkpoints within the port areas.

    Importers and truck drivers have accused the FOU officials of  ”non-compliance”, “extortion of money” and “second clearing”, but the unit says it is doing its job.

    “We are complying with the directive. But if we get information that there was manipulation in the document presented for the release of the cargo from the port, our officers will go there and intercept the item because of the security situation of the country and the affected officer will be asked to report to FOU and subsequently to the Customs Headquarters in Abuja,” FOU Public Relations Officer (PRO) Joseph Attah said.

    FOU officers are mounting checkpoints a few metres away from the ports, and stopping truck drivers for another clearance.

    Some of the officers, the importers allege, demanded between N100,000 and N150,000 and, at times, more from them.

    Last week, about 25 officers in mufti and others in uniform with three operational vehicles were at the Leventis Bus Stop, close to Ijora Bridge, stopping container-laden trucks released from the port and compounding the Apapa gridlock.

    On Friday, another set of Customs officers was at Mile 2, stopping containers.

    Importers and drivers have appealed to President Muhammadu Buhari, the Federal Executive Council (FEC) and Customs Comptroller-General Col Hameed Ali (rtd) to call the FOU officers to order.

    Association of Nigerian Licensed Customs Agents (ANLCA) President Prince Olayiwola Shittu said the FOU officers had no right to seize containers on the road leading to the ports.

    He said: ”The directive from the Federal Government and the Customs Headquarters is very clear that there must not be checkpoints within the port areas. So, what are they doing very close to the two bridges leading to Tin-Can and Apapa ports? They’re staying there shows that some of them are not interested in the trade facilitation programme of the Federal Government but their pockets.

    “We hope the President and the Federal Executive Council (FEC) will call the FOU officers to order and see to the full implementation of the initiative on the ease of doing business within the country.

    Also, an importer, who asked not to be named, alleged that his truck was stopped by FOU officers at Leventis Bus Stop in Apapa. He claimed that they money from him before allowing him to go.

    A top Nigerian Ports Authority (NPA) official said the Managing Director, Ms Hadiza Bala Usman, and the Executive Secretary of the Nigerian Shippers Council (NSC), Mr Hassan Bello, had advised the Customs to map out strategies that would ensure that only certified goods were allowed to leave the ports by its officers. He wondered why a Customs officer would release a cargo from the port only for another to intercept it a few meters away from the port.

    “Who released the goods? Why must a Customs officer release the cargo from the port in broad day light and another officer would say the owner of the goods or the truck driver has questions to answer,” the official said.

    ANLCA’s Public Relations Officer Dr Kayode Farinto accused the officers of violating the ban on checkpoints in port areas because of what they gain from it.

    He said if an importer disobeyed any law, he should be stopped by the superior mechanism put in place by the Customs, from taking the goods out of the port.

    Describing the allegations as untrue, Attah said the unit’s operation was more of intelligence-driven, adding that its operatives could only impound containers that were wrongly released from the ports.

    FOU officers, Attah said, had the power to intercept any container that flouts the government’s fiscal policy.

    He said: “FOU is an enforcement unit of the Nigeria Customs Service and our job is to complement the efforts of every Customs command in the zone.”

    The motive, he said, is to ensure that no importer or clearing agent succeeds in short-changing the government.

    He appealed to Nigerians to give the unit information that could lead to the arrest of fraudulent importers.

  • Court rejects bail for illegal arms ‘importers’

    Justice Ayokunle Faji of the Federal High Court in Lagos yesterday refused to grant bail to five men, who were arraigned for allegedly importing arms and ammunition without authorisation.

    The defendants – Mahmud Hassan, Oscar Okafor, Donatus Achinulo, Mathew Okoye (at large) and Salihu Danjuma – were accused of illegally importing double barrel short guns, pump action rifles and single barrel shotguns (firearms).

    They pleaded not guilty.

    The judge said he would rather grant accelerated (speedy) hearing to the case.

    He held that he would not grant the defendants bail because of the severity of the alleged offence.

    The defendants were arraigned on nine counts of conspiracy to illegally import prohibited firearms, “uttering” of forged documents, bribery and importation of prohibited goods.

    Attorney General of the Federation (AGF) told the court that releasing them on bail would be a risk.

    Defence counsel said the defendants would not jump bail.

    But, the judge said the defendants would remain in prison custody until the cases were determined.

    Count one of the charge said the defendants “on or about January 21, 2017, at Apapa, Lagos conspired together to illegally import into Nigeria 661 pump actions rifles”.

    The prosecution said they brought the arms from Turkey through the Apapa Port in Lagos, using a 40-foot container, which they falsely claimed contained steel doors.

    The Federal Government said the defendants violated Section 98A (1)(b) of the Criminal Code Act by corruptly offering bribe of N400,000 and N1million to public officials on two occasions to present a search of the container.

    Justice Faji adjourned till September 12 for trial.

  • Importers, agents seek review of port charges

    Over 70 per cent importers at Seme and Idiroko borders have deplored the charges they pay at the seaports.
    They want the Federal Government to review the charges paid to the Nigeria Customs Service (NCS) to make the ports attractive
    The importers’ spokesman, Mr Kayode Adesanya, lamented that the importers were unhappy with the charges, which include Customs’Import Duty, Surcharges, Economic Community of West African States (ECOWAS) Trade Liberalisation Scheme (ETLS), and Value Addede Tax (VAT).
    On every 20ft and 49ft container imported from China, the Customs receives the largest share of payments during clearance.
    The lawyer to the Motor Vehicle Importers Association at Idiroko border, Mr Felix Alakija, identified five charges that Customs collects.
    He said: “They are shipping companies and terminal operators charges, clearing agents charges, Customs duty and the truck owners charges.
    “For instance, if a 20ft container is filled with goods worth N33million and it stays inside the ports for four day, then the importer will pay a total of N4.8million, using the exchange rate of one dollar to N330. The payment covers from when the container left its port of origin in China to its final destination in Nigeria.
    “A breakdown of the N4.8million paid for four days by the importer to all operators at the port shows that the shipping company gets 13.8 per cent of the amount as freight; the terminal operators collects 1.4 per cent; the Customs collects 81.7 per cent; the clearing agent gets 1.7 per cent and the truck owner/ haulage driver collects 1.4 per cent of the amount.
    “But in a situation where the cargo stays in the ports for more than 20days, then the importer would have to pay more than N5million because demurrages. Payment to the Customs would still be the highest at 77 per cent.’’
    Also, the spokesman of the Seaport Terminals Operators of Nigeria (STOAN), Mr Bolaji Akinola, confirmed that Customs alone gets between four and five payments.
    He said: “The importers pay charges, such as Import Duty, CIFF, Surcharges, ETLS, and VAT to the Federal Government through the officials of Service at the ports. Charges like these are making the seaports the most expensive in the sub-region. Even agents get more than the terminal operators during cargo clearance.
    “That is why cargoes have dried up at the ports. Most of these cargoes are being diverted to neighbouring ports. There is need for government to look into these charges to make our ports competitive.’
    “Terminal operators are paying their bills through their noses because there are no jobs at the ports anymore.’’
    Many have been sakced to ensure we balance our books, yet it still does not add up. We are humans and cannot continue sacking people.
    “That is why we are always making appeals to the government at every opportunity that there is need to look into charges like the Customs duty. These fees have driven away patronage of Nigeria’s seaports.”

  • Importers spend N2.29t on textile, rice, fish others

    Importers of textile materials, rice, fish, wheat and sugar spend close to N2.29 trillion to bring the commodities to Nigeria, yearly, The Nation has learnt.

    A senior official of the Federal Ministry of Finance, who spoke on condition of anonymity, condemned the high rate of smuggling of the items into the country. The official said textile materials’ importers spend close to N1.29 trillion annually to ferry the items into the country.

    The official, who described those involved in smuggling as economic saboteurs, said smuggled textile materials have continued to flood the markets despite the efforts of the Nigeria Customs Service to curb the menace.

    He said: “From Lagos to Ibadan, Kano, Kaduna and Katsina,  the smuggled textile materials are there. The smugglers are not only undermining the local industry, they also deprive the Federal Government of the needed revenue.

    “Anybody that is involved in smuggling of textile materials, agricultural produce and other items are guilty of economic sabotage. Smuggling is inimical to the national interest, economic growth and rapid development.

    “With the huge number of casualties suffered so far by the Nigeria Customs Service, it shows that smugglers have not only become more aggressive, but creative and determined to continue with their illicit business and that is why Nigerians need to support Customs in its war against smugglers by giving them useful information,” the official said.

    Also, the Executive Secretary, Agricultural Research Council of Nigeria (ARCN), Prof. Baba Abubakar, said rice, fish, wheat, fish and sugar importers spend N1 trillion annually.

    Abubakar, who was represented by the Acting Director, Partnership and Linkages Programme, Yarama Ndirpaya, disclosed this during a seminar on Agricultural Biotechnology in Abuja.

    He said Nigeria was the largest importer of US hard red and white wheat to the tune of N635 billion yearly; world’s number two importer of rice at N356 billion; spends N217 billion on sugar and N97 billion on fish imports every year.

    This, he said, was unacceptable. “Nigeria spends over N1 trillion on the top four food imports annually. And farmers have limited capacity and use techniques that adversely affect soil fertility, water and biodiversity. Human-induced climate change compounds the issue,” he said.

  • Importers, agents, others accuse security agents of extortion

    Importers, clearing agents and truck drivers have accused some of the security agents operating around the Lagos Port Complex and Tin-Can Island port of collecting   bribes from them.

    The operatives, it was gathered, extorted the importers, clearing agents and truck drivers because of the perennial gridlock in Apapa.

    At a special joint meeting with the senior officials of Nigerian Ports Authority (NPA) a few weeks ago, it was gathered that the leadership of the truck drivers accused the security agents of extorting them, urging NPA to finding a lasting solution to the problem.

    The truck drivers complained to the NPA of how the security agents forced them to pay as much as N3,500 to move their containers and other cargo laden trucks out of Apapa.

    The truck drivers, investigation revealed, had serious problem with some of the security agents last year, when they were asked to pay as much as N5000 on each fertiliser-laden containers.

    The drivers were only allowed to move out of the port after a swift intervention by the Lagos Port police command.

    NPA, it was gathered, has inaugurated a standing committee consisting all transport unions and independent fleet owners including the police to stem the activities of the security agents and reduce corruption.

    General Manager, Western Ports, Michael Ajayi confirmed the meeting where the truck drivers complained of massive extortion outside the ports..

    “A standing intervention committee meant to check the alleged cases of extortion on truck drivers by security operatives at the Port entrances in Lagos has been constituted by the Management of NPA.

    “The intervention committee which is under me is meant to address the fears of truckers union on the alleged cases of extortion along port access roads within the Lagos ports corridor.

    The members of the Committee are drawn from the NPA truckers unions, fleet operators, and security agencies. Truckers union represented on the committee include representatives of Truck Owners Unions, Association of Maritime Transport Owners (AMARTO), Joint Council of Seaport Truck Operators (JACOST), National Association of Road Transport Owners (NARTO), Road Transport Employees Association of Nigeria (RTEAN) and Truck Drivers Unit of the Maritime Workers Union of Nigeria (MWUN).

    “The composition of the committee became necessary following repeated complaints by truck drivers on extortion by security operatives at the Ports entrance.

    “Assuring that the Committee would verify all such allegations, he warned that the committee is determined to refer any erring security agent or agency involved in such illegal act to the appropriate government agencies for necessary action.

    “The unions told us how extortion erodes their profit.  We have therefore, decided that no terminal would be allowed to create gridlock within the ports. Where ever we notice building up traffic, we will direct the task for to intervene.

    “Billions of naira were lost to extortion based on what the unions told us and that is why we have taken a pro-active measures to ensure that all vehicles coming to the ports are registered and captured in our data base

    “The Managing Director, Mallam Habib Abdullahi has directed that this must be done to make the ports competitive and attractive for business to increase revenue for the government,” Ajayi said.

    He said the safety department of NPA is in charge of the registration and that the MD would flag off the enforcement of the registration order on first day of March.

    One of the truck drivers, Mr Sunday Daramola said that importers, clearing agents and truck drivers lost over N10billion last year to extortion by the security agents operating outside the ports.

  • Tomato paste importers seek review of forex policy

    Tomato paste importers seek review of forex policy

    Some importers have called on the Federal Government to review the Central Bank of Nigeria forex policy banning them from accessing foreign exchange from the official window just as indigenous producers are saying that the restriction is a welcome development in restoring agriculture as the main stay of the economy.

    Labour union officials in some of the local tomato processing companies have called on the presidency to prevail on CBN to review the forex policy listing of triple concentrate tomato paste among the 41 items banned from accessing foreign exchange from the official window by the Central Bank of Nigeria as the inability of the firms to import tomato concentrate which is the main raw materials used in their production process had drastically affected them.

    According to the President, National Union of Food, Beverage and Tobacco Employees, Lateef Oyelekan, the companies involved should be given the latitude to plan for backward integration as one of the downside of the policy is that it could lead to massive job losses, as an estimated 1000 jobs are likelyto be lost in the tomato process manufacturing sector.

    “The jobs of the workers are at stake unless the ban is reversed, and that the opportunity for backward integration would be lost by the affected companies.”

    According to him, the quantity of the produce being cultivated presently in the country is not enough for local consumption and the quality is not good enough to be processed into paste. However, Mr. Felix Aigoro, an Agricultural Expert with over 20 years experience in tomato farming, pointed out that Nigeria produces high quality tomato and is ranked the 2nd largest producer of tomato in Africa and 13th in the world with a total production estimated at 1million hectares of land producing 1.701 million tonnes per annum with average of 20-30 tons/hectare yet Nigeria remains the largest importer of tomato from China.

    In an interview with The Nation, the Agricultural expert on tomato adviced those clamoring for the review of the CBN forex policy to rather ask Government for greater aid and support towards granting low interest loans, infrastructures, steady energy and creating enough tomato processing plants.

    “It is estimated that between 35 per cent and 40 per cent of the total agricultural produce in the country is lost due to absence of non- provision of processing facilities. This has resulted in cycles of scarcity and plenty of fluctuations in prices”, regretted the tomato farmer.

    Decrying the unfortunate situation, the tomato farmer said that Nigeria imports 65,809 tonnes of processed tomato annually worth over N11.7 billion despite its massive local production adding that the trend may continue if adequate processing and storage mechanism is not developed and put in place.

    “Take for instance, a recent survey has revealed that most of the brands in the market are imported and the presence of local brands is scarcely noticeable’’, he said

    Speaking further, he said that although more than 200,000 Nigerian farmers grow tomato, not one of the more than 50 tomato paste brands for sale is made from their produce resulting in half rotting in the fields before reaching the market.

    “The market is assured for any entrepreneur who comes out with good quality brands because tomato products are in daily use, have high repeat sales tendency and a long cycle therefor establishing more tomato fruit processing plants in the country will go a long way towards utilizing the enormous quantities of fresh tomato that go waste for lack of processing and preservation especially during post harvest periods of plenty.

    Reacting to the statement that local production may not be enough to meet demand and the quality of the locally grown tomato may not be good enough to be processed into paste, Mr. Aigoro who has a 1st and 2nd degree in Agricultural science said that “Nigeria has the capacity to meet local demand and even for exportation and the quality of our tomato especially from the northern part of the country is top quality”.

    “We have seen a lot of improvement in the demand for our products especially our Life vegetable oil since the new CBN forex policy restricting importers of Vegetable oil from accessing foreign exchange through the official way” enthused Chris Chigbo, Executive Director of Chicason Group an indigenous company.

    Speaking, he noted that the restriction of imported finished products will greatly encourage local manufacturers who hitherto were finding it difficult competing in terms of price with most of the importers who were not even paying full duty on their products.

    “We are also happy with the increased tariff on imported lubricants. Before now, the market was filled with all brands of adulterated and substandard lubricants but with the increased tariff we now have some semblance of sanity in the lubricant market” said the Chicason, Director,manufacturers of A-Z oil.

    However he stated the need for a little review of the CBN forex policy on some raw materials which Nigerians are not yet producing enough to meet demand adding that restrictions on those materials will only make the manufacturers to source from parallel market which will  increase the price of the finished products.

    Also speaking on the policy, President of the Lagos Chamber of Commerce and Industry (LCCI), Remi Bello, while criticizing the policy, warned that most manufacturers might be forced to shut down and move their operations to neighbouring countries due to their inability to access foreign exchange for raw materials and other critical inputs.

    According to him, the government needs to first address the issue of post-harvest wastage emanating from inadequate storage and the absence of processing facilities and the development of agro-allied industry. “No matter how bounteous the nation’s harvest is, such productivity will count for little if the produce cannot be stored.” he said.

    However the CBN Governor, Godwin Emefiele noted that as a result of the policy, the bank has been able to conserve some foreign currencies with a lot of progress made on local production of the 41 listed items.

    According to reports, Nigeria imports 65,809 tonnes of processed tomato annually worth over N11.7billion.

    The CBN Governor clarified that “the Apex bank did not ban total importation of the said items but only restricted access of foreign exchange from official markets to the importers of those items that we think we can produce competitively locally so as to improve our local industries due to the challenges we have, due to the fall in crude oil revenue.”

    Appealing for more patience and understanding, from Nigerians and the people affected, he said that the Government and some other stakeholders are convinced that these items can be produced locally adding that forex can only be made available to those importing essential raw materials and goods that cannot be produced within the country.

  • Customs warns importers against trading in banned goods

    Customs warns importers against trading in banned goods

    The Nigeria Customs Service (NCS) on Thursday warned importers against trading in goods banned by the Federal Government.

    Malam Sani Madugu, the Area Controller, Federal Operations Unit (F.O.U.) Zone `A` Ikeja, gave the warning in an interview with the News Agency of Nigeria (NAN) in Lagos.

    “We always mention those items that have been banned, but if you go to the market you will see them.

    “They sell the left-over they have in their shops and their stores because the law has not backdated the ban.

    “This ban is not actually prohibition. It is prohibition by trade. You need to know the difference between the two.

    “There is absolute prohibition, which means it should not come at all. Then there is prohibition by trade, you cannot bring in large quantity and sell to the public.

    “If you travel out, buy one piece and you come back with it, the Customs will not seize that one piece from you.

    “They are as conversant as we are. The importers, the agents, they are very knowledgeable people.

    “They know what government has banned and they know what government has not banned. They even have copies of the circulars.

    “Some of them go as far as Brussels; our international body to collect certain things.

    “When you are arguing with them on classification, they will be able to defend themselves; they argue a lot. Decisions go to as far as headquarters.

    “After the tariff decision in headquarters has taken place, they even appeal our judgement and go to Brussels.

    “So when they get there, whatever Brussels decide, will be communicated (back) to the Nigeria Customs Service.’’

    He warned that the Customs would not hesitate to arrest and prosecute any importer caught trading in contraband.

    “When we compile all these seizures, we will now take them to court. If court condemns it, the record of court condemnation and the record of the seizures will be presented to the Nigeria Customs Service Headquarters.

    “At that level, it has gone beyond the area comptroller of every area. The management of Customs will liaise with the Federal Government of Nigeria.

    “So, at that level the government will now take decision on what to be done with these kinds of items; we constructively warehouse these items.

    “The Nigeria Customs Service is not relenting in its efforts. All the prohibited items, when we see (them), we will seize, and arrest the people (involved).

    “We will detain them; we will prosecute them in court; we will allow the court to take decision on that issue.

    “It is better to stop smuggling than to continue doing it when you know very well the Nigeria Customs Service will detain you (when it catches up with you).”

    The comptroller, therefore, urged importers to carry out their activities within the ambit of the law.

  • CBN ‘should give fuel importers access to forex’

    Operators in the downstream sector of the oil and gas  industry have advised  the Central Bank of Nigeria (CBN) to make it easy for importers of petroleum products to  access  foreign exchange (forex) in the short term.

    The advice, is coming on the heels of the Federal Government’s  move to create a transparent market-driven system by publishing fuel prices.

    A communiqué by industry players and stakeholders, at the end of this year’s Oil Trading Logistics (OTL) Africa Downstream Week in Lagos, explained that fuel  subsidy is a disincentive to the supply chain infrastructure investment, market innovation and consumer value. It added that in view of low crude oil prices and naira devaluation, the country could no longer afford to pay  subsidies.

    They urged  the government to remove fuel subsidy and deregulate the downstream sector. Deregulation of the industry will attract appropriate investments, promote optimal efficiency, healthy competition, ensure efficient supply of petroleum products to the country and improve the infrastructures in the downstream sector, the communiqué  added.

    They want local refining of fuel to be prioritised and a deliberate shift initiated from importing products to building refineries. There is a need for a national refining policy, which defines the framework for encouraging investment in petroleum refining in Nigeria to facilitate increased national revenue and infrastructure development, the communiqué  said.

    It noted that in view of the significant number of jobs created by the downstream sector, the private sector should be encouraged to drive the growth of the industry through appropriate policies, while the government should provide the legal framework on which the  sector will be anchored, including the Petroleum Industry Bill (PIB). The PIB needs to be clarified and enacted with a view to ensuring legal certainty and promoting efficiency and competitiveness, it added.

    The communiqué said the downstream expansion of natural gas utilisation, with regulated gas price for domestic sales, governance limitation and institutional deficiency, constitute both a challenge and opportunity for gas supply. To stimulate investment in liquefied petroleum gas (LPG), multiple taxes and high tariffs should be reduced while the development of infrastructure and distribution channels such as local cylinder manufacturing, storage facilities, filling plants, bob-tail trucks, gas pipeline for residential consumption, automobiles and petrochemical plants, should be encouraged to enable the growth of LPG.

    The industry players also called for the removal of subsidy on kerosene to encourage the growth of LPG consumption in Nigeria. Also to encourage the development of the lubricants and base oils market, regulators, operators and consumers need to work together to stop the importation of substandard lubricants as well as the activities of illegal blenders while research and development should be ongoing for production of base oil in Nigeria.

    They stressed the need to have a strong advocacy group to work with the regulatory body, to drive home the point that a good standard of quality of lubricants must be maintained, they added.

    The communiqué read in part: “There is need to commercialise the pipelines by concessioning or outright sale, for an efficient distribution of the products. It is prudent to invest in an oil spill surveillance technology to monitor oil spillage through pipeline vandalism.

    “Oil companies are encouraged to undertake good corporate social responsibility to preserve the communities where they operate and to create a form of investment through job creation; thereby reducing threats of piracy and sea robbery.

    “There is need for government to ensure the roads are fixed and the rail system reactivated either by itself or through Public-Private Partnership (PPP), to enable the trucks move the products safely and promptly to the storage facilities while the rail assists the road networks.

    “Truck drivers should be enjoined to undertake trainings to improve their driving skills, for their safety and safety of the community.”