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Tag: OPS

  • OPS backs Federal Govt’s position on African trade treaty

    The Organised Private Sector (OPS) has said supported the Federal Government for not signing the African Continental Free Trade Area (AfCFTA).

    It, however, called for caution  to avoid mistakes on the issue.

    Speaking at a forum organised by the private sector to identify the merits of AFCFTA in Lagos, Lagos Chamber of Commerce and Industry (LCCI) President, Mr. Babatunde Ruwase, said the argument for not  signing the treaty was its fear of numerous bilateral trade agreements of some member-states of the African Union (AU) with the rest of the world and Nigeria’s underdeveloped industrial and infrastructural sector.

    “It has been argued that this will potentially make Nigeria a dumping ground due to our uncompetitive manufacturing profile, market size and population.

    “To us at LCCI, these are legitimate concerns. It is therefore imperative to deepen consultation across all sectors, in order to address these genuine concerns from stakeholders. The government missed it when they failed to consult widely before indicating their interest to sign the agreement” Ruwase said.

    Nigerian Association of Small & Medium Enterprises (NASME) President, Degun Agboade said since 80 per cent of the workers is from the Small and Medium Enterprises (SMEs), the engine of economic growth, the government should explain and assure that it would not hurt the local economy. He urged the government to check  smugglers, noting that if only approved goods and services were allowed into the country, it would attract gains from the advanced economies.

    Nigeria Association of Chambers of Commerce Industry Mines & Agriculture (NACCIMA) Director-General, Ayoola Olukanni advised that the AfCFTA framework should be drawn up with the OPS to ensure that local firms do not suffer as a result of joining the group.

    He said this should not jeopardise the policy objectives of job creation and industrialisation, as contained in the Economic Recovery and Growth Plan (ERGP) and the Nigeria Industrial Revolution Plan (NIRP) which the chamber supports.

    “The plan associated with ‘Lagos Global’ by the state government recommended an approach for leveraging the opportunities of the AfCFTA through identifying sectoral priorities, market expansion, ease of doing business and consolidating and expanding Lagos as an African economic hub,” he said.

     

  • OPS, marketers fault PIGB on single regulator for oil industry

    The Organised Private Sector (OPS) and oil marketers have faulted the provision of a single regulator, the Nigerian Petroleum Regulatory Commission (NPRC) in the Petroleum Industry Governance Bill (PIGB) by the National Assembly.

    They spoke jointly to reporters in Lagos yesterday. While  the OPS was represented by its Chairman, Economic Policy Committee, Manufacturers Association of Nigeria (MAN), Mr. Odiah Reginald Odiah, the Major Oil Marketers Association of Nigeria (MOMAN) was represented by its Executive Secretary, Mr. Obafemi Olawore. The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) was also represented by its Executive Secretary, Mr. Olufemi Adewole.

    The groups told reporters that they have carefully gone through the PIGB and noted the provision of a single regulator in the bill would be counter-productive and keep Nigerians and the economy in same problems we experience today in the oil and gas industry.

    They say it has become imperative to point out the problem before the bill gets presidential assent because they learnt the National Assembly has harmonised their positions on it. Creating one regulator for the upstream and downstream sectors of the industry will be too big and the regulator will become ineffective, they argued.

    They groups said: “We need the National Assembly to create two regulatory bodies or agencies that will be independent, one for the upstream and one the downstream.”

    At the beginning of Nigeria’s oil industry, it was only one regulator that existed, the Department of Petroleum Resources, and it was not able to properly and efficiently regulate the industry, hence the creation of the Petroleum Products Pricing Regulatory Agency (PPPRA) and the Petroleum Equalisation Fund (PEF).

     

  • OPS, oil marketers fault PIGB on single regulator for petroleum industry

    The Organised Private Sector (OPS) and oil marketers have faulted the provision of a single regulator, the Nigerian Petroleum Regulatory Commission (NPRC), in the Petroleum Industry Governance Bill (PIGB) by the National Assembly.

    They spoke at a briefing in Lagos.

    While  the OPS was represented by the Chairman, Economic Policy Committee, the Manufacturers Association of Nigeria (MAN), Mr. Odiah Reginald Odiah, Major Oil Marketers Association of Nigeria (MOMAN) was represented by its Executive Secretary, Mr. Obafemi Olawore. The Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) was represented by its Executive Secretary, Mr. Olufemi Adewole.

    The groups said they had carefully gone through the PIGB and noted that the provision of a single regulator would be counter-productive and keep Nigerians and the economy in same problems experienced in the industry.

    According to them, it has become imperative to point out the problems before the bill gets presidential assent. They also said they learnt that the Senate and the House of Representatives had harmonised their positions on it. To them, creating one regulator for the upstream and downstream sectors of the industry will make the regulator ineffective.

    The groups said: “We need the National Assembly to create two regulatory bodies or agencies that will be independent, one for the upstream and one the downstream. At the beginning of Nigeria’s oil industry, it was only one regulator that existed, the Department of Petroleum Resources, and it was not able to efficiently regulate the industry, hence the creation of the Petroleum Products Pricing Regulatory Agency (PPPRA) and the Petroleum Equalisation Fund (PEF).

    “Besides, upstream and downstream are completely different, but have petroleum in common. Upstream is relatively quiet even though the work there is enormous and has little to do with Nigerians domestically.

    “But in downstream, every Nigerian is involved either as consumer or petrol station owner, among others. Therefore, to have one regulator to supervise it will cause too much bureaucracy, tardiness and undue cumbersomeness in the oil and gas operations as witnessed currently.

    “We need two regulators that are effective, have speed, efficiency and the required staff to focus properly on each segment of the sector to tackle their responsibilities. Having one regulator will be detrimental to the economy. Therefore, we would like the National Assembly to look at the regulator aspect of the Bill again and involve all stakeholders.”

    While the marketers said they participated in the public hearing of the bill and recommended separate and independent regulators for the upstream and downstream of the industry, Odiah said MAN did not participate in the hearing because its members were not well informed about it; they only saw the passed bill. They also noted the importance of adding the various stakeholders as part of the regulatory bodies as having 100 per cent civil servants as in the regulatory bodies will amount to putting old wine in a new bottle.

  • OPS, oil marketers fault PIGB’s single regulator for petroleum industry

    •Seek separate independent regulators for upstream, downstream

    The Organised Private Sector (OPS) and oil marketers have faulted the provision of a single regulator, Nigerian Petroleum Regulatory Commission (NPRC) in the Petroleum Industry Governance Bill (PIGB) by the National Assembly.

    At joint press briefing in Lagos yesterday by the OPS represented by the Chairman, Economic Policy Committee, Manufacturers Association of Nigeria (MAN), Mr. Odiah Reginald Odiah, Major Oil Marketers Association of Nigeria (MOMAN) represented by its Executive Secretary, Mr. Obafemi Olawore and Depot and Petroleum Products Marketers Association of Nigeria (DAPPMAN) represented its Executive Secretary, Mr. Olufemi Adewole, the groups said they have carefully gone through the PIGB and noted the provision of a single regulator  in the Bill would be counter-productive and keep Nigerians and the economy in same problems we experience today in the oil and gas industry.

    According to them, it has become imperative to point out this problem before the Bill gets presidential assent as they learnt the Senate and the House of Representatives have harmonised their positions on it. To them, creating one regulator for the upstream and downstream sectors of the petroleum industry will be too big or humongous and the regulator will become ineffective.

    They said: “We need the National Assembly to create two regulatory bodies or agencies that will be independent, one for the upstream and one the downstream. At the beginning of Nigeria’s oil industry, it was only one regulator that existed, the Department of Petroleum Resources, and it was not able to properly and efficiently regulate the industry, hence the creation of the Petroleum Products Pricing Regulatory Agency (PPPRA) and the Petroleum Equalization Fund (PEF).

    “Besides, upstream and downstream are completely different but have petroleum in common. Upstream is relatively quiet even though the work there is enormous and has little to do with Nigerians domestically. But in downstream, every Nigerian is involved either as consumer or petrol station owner, among others. Therefore, to have one regulator to supervise it will cause too much bureaucracy, tardiness and undue cumbersomeness in the oil and gas operations as witnessed currently.

    “We need two regulators that are effective, have speed, efficiency and the required staff to focus properly on each segment of the sector to tackle their responsibilities. Having one regulator will be detrimental to the economy. Therefore, we would like the National Assembly to look at the regulator aspect of the Bill again and involve all stakeholders.”

    While the marketers said they participated in the public hearing of the Bill and recommended separate and independent regulator each for the upstream and downstream of the industry, Odiah noted that MAN didn’t participate in the public hearing because their members were not well informed about it but only saw the passed bill. Ever since we have been warning about the dangers of having one regulator for the industry, he added.

    They also noted the importance of adding the various stakeholders as part of the regulatory bodies as having 100 per cent civil servants as in the regulatory bodies will amount to putting old wine in a new bottle.

     

  • OPS to Lagos: widen Land Use Charge net

    Lagos Chamber of Commerce & Industry (LCCI) Prsident, Mr. Babatunde Ruwase has advised the Lagos State government to widen the Land Use Charge net to capture more properties instead of increasing the tax burden of Lagosians.

    Ruwase, who spoke at the Stakeholders’ Forum on Land Use Charge Law in Lagos, argued that while LCCI would not encourage infractions, sanctions were rather too high at between 25 per cent and 100 per cent, adding that they were too severe and undemocratic.

    He said: “We understand that only 300,000 properties are paying the Land Use Charge, yet the number of properties identified for tax is in excess of 700,000. Therefore, emphasis should be on getting more properties into the net, rather than imposing additional burden on those on the database. Indeed, over 90 per cent of the Internally Generated Revenue (IGR) of over N300 billion is from the private sector and we are willing to do more, but we seek a tax regime that is methodical, predictable, fair, equitable, inclusive and transparent.”

    Ruwase called for more understanding in the issues raised in the computation of the charge, adding that the assessed value of between 200 and 500 per cent was high and difficult to justify.

    He said LCCI’s argument was based on the fact that industrial capacity utilisation had declined with weak occupancy rates in many commercial and residential properties.

    According to Ruwase, these had adversely impacted the returns on investment in the property market. He added that the market value of a property might not necessarily reflect its rental income.

    Speaking on behalf of the OPS, a representative from the Nigeria Employers’Consultative Association (NECA), Mr. Timothy Olawale, said the group was not averse to the increase of the land charge, but that the base percentage should be retained.

    He said relevant stakeholders should be included in determining the variables for arriving at acceptable goals. He asked for a market value that would be discounted by not less than 50 per cent.

    Earlier, Commissioner for Finance, Akinyemi Ashade said the idea was aimed at having a progressive tax regime. He said for 16 years, the tax regime had been reviewed.

    He said under the new regime, over 75 per cent of property owners are in the less than N10 million worth of property price bracket who are expected to pay only N5,000 yearly while those with over N20million worth will pay only N2, 640 monthly.

    He regretted the controversy that the charge had generated and asked the public not give in to those who were twisting the facts. He explained that pensioners above 60  had over 40 per cent relief.

    Ashade said the analysis of the state government revealed that over 614 property owners have properties worth N1billion, noting that some of them were not paying the required tax on them.

    The commissioner said the process was open to change and arbitration and that any one wrongly assessed would get a refund.

  • Cuba to strengthen economic relations with Nigeria

    Cuba to strengthen economic relations with Nigeria

    Cuban Ambassador to Nigeria, Mr Carlos Saso, said his country would strengthen economic relations with Nigeria to boost trade between both countries.

    Saso said this when he visited Mr Adetokunbo Kayode, the President of Abuja Chamber of Commerce and Industry, on Monday in Abuja.

    Media and Protocol Officer of the chamber, Mr Gena Lubem, said in a statement that the ambassador stressed the need to galvanize resources for more joint economic activities between the countries.

    Read also: Cuba to partner Nigeria in medicine, biotechnology

    He said that Cuba would explore more relations with Nigeria in the health industry, agriculture and sports.

    According to him, Cuba is interested in manufacturing critical vaccines in Nigeria to tackle endemic ailments like Hepatitis B and C, Meningitis, Lassa fever and Diabetes.

    He added that the country was also interested in the establishment of Cuban-Nigerian joint venture hospitals in Abuja.

    Saso expressed interest in developing a strategic relationship with the Abuja Chamber in these areas to improve commercial activities and enhance the balance of trade between the two countries.

    Receiving the envoy, Kayode commended him for demonstrating genuine interest in improving the economic ties between Nigeria and Cuba.

    “This is in line with the strategic plan of the chamber to forge strong ties with the international business community to develop joint ventures and enhance foreign direct investment,” he said.

    He urged the international community to work with Nigeria in all areas of business, especially now that the business environment was getting better.

    “The chamber is also encouraging Public-Private-Partnerships ( PPP ).

    “The government now realises that the Organized Private Sector ( OPS ) and the public sector exist to advance the economy and the general good of the country.

    “The bodies will also advance the renewed and on-going efforts at ease of doing business programme which is improving the business environment in Nigeria,” Kayode said.

    NAN

  • Morocco’s admittance into ECOWAS: Why OPS is kicking

    Morocco’s admittance into ECOWAS: Why OPS is kicking

    Members of the Organised Private Sector (OPS) are literarily up in arms against moves by Morocco to join the Economic Community of West African States (ECOWAS). They insist that Nigeria must not allow the North African country’s  admission into the regional body, arguing that doing so will be tantamount to signing the European Union (EU) sponsored Economic Partnership Agreement through the back door, which they say will hurt the industrial sector and the economy. Assistant Editor OKWY IROEGBU-CHIKEZIE looks at issues agitating OPS members’ minds.

    groundswell of opposition has continued to trail Morocco’s application to become a member of the Economic Community of West African States (ECOWAS). Leading the campaign to halt the North African country’s admittance into the regional organisation are members of the Organised Private Sector (OPS), particularly Manufacturers Association of Nigeria (MAN).

    The Association has been literarily up in arms against Morocco’s bid to join the 15-member organisation, arguing that it will not be in Nigeria’s interest as it will hurt the industrial sector and by extension, the economy. The OPS has since then mounted intense pressure on the Federal Government not to allow Morocco to be part of ECOWAS.

    At their meeting in Liberia, sometime in June last year, ECOWAS leaders were said to have agreed in principle to consider Morocco’s request to become a member of the regional trade bloc. But the potential membership of the North African country has not gone down well with the OPS, which has continued to advance several reasons Nigeria must be vehemently opposed to the move.

    MAN President Dr. Frank Udemba Jacobs, who has been most vociferous in the OPS campaign to halt Morocco’s potential membership of the regional gruop, noted for instance, that by reason of its geographical location, Morocco does not qualify to be admitted into the group. Besides, its trade agreement with the European Union (EU) makes it harmful to allow her join the regional body.

    Jacobs specifically said information available to MAN showed that a trade agreement exists between Morocco and the EU. This, according to him, meant that if Morocco is allowed to join ECOWAS, products that come into Morocco from the EU will end up in Nigeria. This is so because Nigeria is the biggest market amongst the 15-menber countries in ECOWAS.

    The MAN president, therefore, noted that by extension, admitting Morocco into ECOWAS will be equivalent to signing the controversial Economic Partnership Agreement (EPA) between ECOWAS and the EU through the back door. This, he said, will negatively affect the country’s economy as locally manufactured goods will find it extremely difficult to compete with imported products from the EU.

    It would be recalled that the OPS and other concerned individuals have been warning Nigeria to resist EU’s pressure to sign the EPA, which, according to them, will be counter-productive. To them, it will leave Nigeria, especially operators in the industrial sector, holding the short end of the stick. They also argued that endorsing the EPA deal will hurt Nigeria’s industrialisation and job creation drive.

    Under the EPA terms, which triggered OPS’ suspicions, the EU will immediately offer ECOWAS 15-member countries full access to its markets. In return, ECOWAS will gradually open up 75 per cent of its markets, with its 300 million consumers, to the EU over a 20-year period.

    According to OPS, that was not all as the EU will also offer a package valued at about Euros 6.5 billion ($8.94 billion) over the next five years, to help ECOWAS countries cushion the effects and costs of integrating into the global economy. Despite dangling the proverbial carrot, the OPS had kicked its heels in, insisting that the proposed agreement was a union of unequal partners.

    They have consistently warned that signing the agreement in its present form will undermine Nigeria’s industrial sector. They specifically argued that it will impact negatively on local manufacturing and result in shutdown of industries with heavy job losses as a result of unfair competition that will follow.

    To Jacobs and indeed, other real sector operators,  Morocco’s alleged surreptitious move to join the ECOWAS and the EU’s push to get Nigeria endorse the EPA, are two sides of the same coin. Admitting Morocco into ECOWAS, they argued, will give the EU, which already enjoys unfettered access into the North African region, unfettered access to the Nigerian market and probably make it a dumping ground.

    “We, therefore, urge the Federal Government to vehemently oppose the move as it would spell doom to the productive sector of the economy. We are vehemently opposed to Morocco being admitted into the ECOWAS. It will really affect us badly. So, we are telling our government not to allow them become part of ECOWAS,” the MAN said, in a statement.

    OPS members are not only in the campaign against Morocco. The Association of Retired Career Ambassadors of Nigeria (ARCAN) is also kicking. The group went a notch higher, calling on the government to resist any attempt by other member countries of ECOWAS to admit Morocco into the regional body.

    ARCAN founding Chairman and former Minister of Foreign Affairs, Ambassador Ignatius C. Olisemeka, noted that Morocco, by reason of its geographical location, does not qualify to be admitted into the regional organisation.

    He warned that Morocco’s motive was political and aimed at whittling down Nigeria’s strength for her role in the admission of Western Sahara into the then Organisation of African Unity (OAU), now AU. He, also wondered why the Federal Government has so far not engaged in a vigorous campaign against Morocco’s move, stressing that the government owes Nigerians an explanation.

    The group did not stop there. ARCAN also said Morocco’s admission in principle, if true, would have been one of the most humiliating and lowest points in Nigeria’s foreign policy since independence. It argued that admitting Morocco into ECOWAS would mark the end of the regional bloc, as a new name would be introduced to accommodate countries beyond the border of West Africa.

    Similarly, another group known as the Nigerian Movement for the Liberation of Western Sahara is also opposed to Morocco’s admission into ECOWAS. The group said the 15-member nation has little in common with the North African kingdom, especially as it maintains a grip on Western Sahara.

    The group’s convener, Mr. Dipo Fashina, said in a statement that the move by Morocco to join ECOWAS was a direct challenge to Nigeria’s leadership in the sub-region. He, therefore, advised that Nigeria must rise to the occasion and ensure that Morocco’s application for membership is rejected.

     

    Others reasons for OPS’s opposition

    According to OPS,  the ECOWAS region has overtime metamorphosed into a Free Trade Area (FTA) for the 15-member states through the ECOWAS Trade Liberalisation Scheme (ETLS). The thinking is that any other non-Western African country joining the community will unduly benefit from the existing free trade in the region.

    Besides, ECOWAS’ treaty, which promotes the reign of a democratically elected president in all member states with a maximum of two terms by interpretation, has no room for monarchical system of government, which Morocco practises.

    Also, based on trend analysis, ECOWAS has little trade benefit expectations from Morocco. The historical trade pattern relations of Morocco revealed no notable trading ties with ECOWAS states.

    Going by her current demand pattern, Morocco trades with Saudi Arabia, Iraq and Russia, Algeria and the EU. All of these imply that over the years, Morocco has little or no trade dealings with ECOWAS states.

    There are also those who argued that Morocco’s memberships of numerous economic blocs pose serious loyalty question. This is because Morocco belongs to the Arab Maghreb Union (AMU), an associate country of EU, Arab League and the Union for the Mediterranean.

    The Union for the Mediterranean comprises 28 countries from the EU. This means that granting Morocco ECOWAS membership will afford 28 countries from the EU free access into the regional market, thereby flooding the market with EU products.

    As far as the OPS is concerned, this will be a decoy that will weaken Nigeria’s stance on the ECOWAS-EU EPA, inhibit Nigerian diversification drive and stifle the growth of the manufacturing sector through exploitation of Nigerian and the ECOWAS market.

    These perhaps, explain why OPS members are unimpressed by Morocco’s promise to build infrastructure if admitted into the ECOWAS. As far as they are concerned, the North African country is not economically viable to make good its promise.

    For one, the country’s unemployment level and debt-to-Gross Domestic Product (GDP) ratio of 64.7 per cent as contained in the 2016 International Monetary Fund (IMF) report are said to be at variance with the IMF’s benchmark of 40 per cent for developing and emerging economies.

    Besides, those opposed to its membership of the ECOWAS argued that the Moroccan economy is not industrialised. They, therefore, wondered where it hopes to get industrial goods to trade with the ECOWAS. To them, Morocco only wants to further EU’s interest by becoming a strategic channel for pushing EU goods, which Nigeria is currently challenging, through the back door.

     

    Nigeria yet to make up its mind on Morocco

    Despite the agitation against Morocco’s admittance into the ECOWAS, the Federal Government said it has not made up its mind on the knotty issue. Minister of State for Commerce, Industry, Trade & Investment, Hajia Aisha Abubakar, said the government will in due course make its position known on it.

    The Minister, however, pledged that the government remained poised towards protecting indigenous manufacturers. But it remains to be seen whether such commitment to protect indigenous manufacturers will mean putting its foot down to stop Morocco’s entrance into the ECOWAS.

  • OPS expresses frustration over high interest rate in 2017

    The Organised Private Sector (OPS) in the country has expressed frustration over the high interest rate regime, which persisted last year.

    In its review of the outgone year, Manufacturers Association of Nigeria (MAN); Nigeria Employers Consultative Association (NECA) and Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) noted that  their vigorous  advocacy for single digit interest rate regime in Nigeria, specifically five per cent,  went  unheeded, and unfulfilled by the monetary policy.

    According to the various OPS organisations, whereas in Nigeria interest rate hovers between 25-30 per cent, excluding other ancillary charges. In other parts of the world their interest rates hover from 0 to 10 per cent. For instance in Kenya it is 10 per cent, South Africa seven per cent, China 4.35 per cent and, U.S.A 0.75 per cent. Others are United Kingdom 0.25 per cent, France 0.00 per cent, India 6.25 percent and Brazil 13 per cent.

    In addition they said Mexico is 5.75 per cent, while Indonesia is 4.75 percent, Ghana 25.5 per cent and Ethiopia five per cent,  urging the government to address the disparity to stimulate the growth of the sector.

  • OPS laments inability to reform oil sector

    The Organised Private Sector (OPS) has decried the inability of the Federal Government to drive reforms in the oil and gas sector in the last 10 years.

    It said the failure to reform the sector has removed the shine from Nigeria as a preferred destination for investment in the sector.

    It also lamented that the reason for the delay is the failure of successive governments to articulate the appropriate legal framework that will underpin the reform.

    Manufacturer’s Association of Nigeria (MAN) Director-General, Segun Ajayi-Kadir, who spoke  on behalf of his colleagues, regretted that at some point, all efforts aimed at achieving  the desired result  have led to  confusion as there were  many versions of the Petroleum Industry Bill (PIB) before the National Assembly, with no one knowing  the  correct version.

    He, however, commended the current move of the National Assembly to revisit the bill with a view to accelerating economic development.  He rejected the likely emergence of the Petroleum Regulatory Commission (PRC), which he referred to as humongous commission that will be empowered to regulate the entire petroleum sector.

    He said: “We do not share the views of the National Assembly on the creation of a behemoth regulator for a sector that is not necessarily homogenous in its activities and deliverables. The idea of a single regulator for the whole sector runs contrary to industry standards which by default already provide for an upstream and downstream regulator.”

    He said the OPS is against it because the responsibilities expected to be handled by the proposed commission are too wide and cuts-across various value chains in a key sector of the economy.

    He said: “The bureaucratic bottlenecks that will arise would clearly negate the ease of doing business policy  being pursued by the  administration. We believe that an omnibus regulator will further result in cumbersome and constant delays in securing the necessary approvals to conduct business.”

    He said the OPS is of the opinion that a single regulator will create  challenges for operators in the petroleum value chain because the structure, operation and nature of the downstream are totally different from that of the upstream sector.

    Segun-Kadiri said this is more so when there are different operators in the petroleum sector value chain with multifarious and diverse objectives, ranging from guarding against systemic risk to protecting the individual consumer from fraud.

  • OPS decries state of Apapa road, others

    The Organised Private Sector (OPS) has again epressed concerns over the current dilapidated state of Apapa road which has led to traffic gridlock. They stated that the challenge is taking toll on trade facilitation, cost of cargo transportation and overhead cost of businesses in the country.

    A statement by the Director-General, Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir on behalf of Nigeria Employers Consultative Association (NECA), Nigerian Association of Chambers of Commerce, Industry, Mines & Agriculture (NACCIMA), National Association of Small and Medium Scale Enterprises (NASME) and National Association of Small Scale Industries (NASSI) in Lagos yesterday, lamented that the traffic jam hampers access to the ports, paralyse economic activities, engender loss of man-hour and enormous wastage of fuel..

    “Most worrisome is the that fact that this challenge is also leading to heavy revenue loss to government, too long turnaround time for delivery of cargoes, huge transportation cost, avoidable raw materials stock-out and the inability of companies to meet set production targets,” the statement read in part.

    The group lamented that trucks hired to carry cargoes do not have easy access to the port to lift or deliver cargoes and those lifting cargoes cannot come out of the port because of the long hours of traffic. According to the statement, it now takes between five and eight weeks for the delivery of cargoes to be taken.

    OPS said port users now pay between N350, 000 and N400, 000 as cargo transport cost as against the standard rate of N100, 000 per cargo, adding to operational cost.

    The current business environment has the capacity to hinder profitability and erode the reasonable progress that government has made so far in improving the business operating environment, OPS added.

    The group argued that this may further worsen the rating of the country in the ease of building business index if not urgently addressed.

     

     

    The MAN DG pointed said there is no reason why our ports being the gateway to international trade and flow of cargoes cannot have world class infrastructure, access roads and facilities in line with best practices evidenced by status of ports in China, Dubai, Germany, Malaysia, and Singapore.

    He further called on the government to speed up actions that will proffer permanent solutions to this challenge by setting up a taskforce made up of representatives of all stakeholders to strategize on ways and means of resolving the challenge.

    He also called for the creation of alternative route to ease the current pressure on all the stakeholders operating on the maritime value chain.