Damaged Beans Export: ICNL declines FG, NSC directive to pay 70% cost to shipper

by Samson Echenim

Inland Containers Nigeria Limited (ICNL), manager of the Kaduna Inland Dry Port (KIDP) has declined to obey a directive of the Presidential Committee on Trade Malpractices and the Nigerian Shippers Council (NSC) to pay the exporter 70% of cost of shipping beans to Dubai through the inland terminal in 2022.

A Nigerian company based in Kaduna, USBAB Multichoice Limited had exported two containers of Black Eye Beans to Jebel Ali Port, Dubai, United Arab Emirate from KIDP managed by ICNL in July 15, 2022. The beans export valued at N157.6 million did not arrive at the destination seaport until October 11, 2022, at which time the product had been damaged and rejected by the importer in Dubai.

Faced with the magnitude of loss and shock, the Chief Executive Officer of USBAB Multichoice Limited, Usman Baba Ahmad had reported the incident to the Ministry of Trade and Presidential Committee on Trade, which referred the matter to the Nigerian Shippers’ Council. Following the intervention of these federal government organs, the matter was resolved and ICNL was directed by the agencies to pay 70% of the cost of the export and freight, coming around N110.3 million to the exporter for losses incured, while the exporter bears 30% of the losses.

However, a competent source in the matter told The Nigerian Economy that ICNL, which was commissioned by the shipper as the forwarding agent for the exports, had maintained that it would not pay the 70% to the exporter as directed the federal government agencies. According to the source, the dry port operator has insisted that it could only offer discounts to USBAB Multichoice Limited on its subsequent shipping jobs brought to the terminal to handle.

“They (ICNL) have insisted that they will not do what the government agencies said they should do. They said they will not pay the 70% but that the management has had a meeting and they have resolved to give discounts to USBAB Multichoice Limited in their subsequent shipping jobs with the terminal,” the source said.

Speaking with The Nigerian Economy on Monday, USBAB CEO, Ahmad said he had been forced out of business since 2022 by the unfortunate incident which caused him and his company an irreparable loss and finding it hard to survive.

Pius Akutah, Executive Secretary/CEO, Nigerian Shippers’ Council

“My company has not been in business since ICNL damaged our exports due to their lacklustre attitude that led to the unimaginable delay which negatively impacted our product and damaged them before reaching the exporter in Dubai. We have been out of business since then and I am now heavily indebted,” Ahmad said.

He continued: “When the incident happened, I became hopeless. I later picked up my pieces and reported at the Ministry of Trade and the Committee on Trade Malpractices and then the Nigerian Shippers Council. For two years now we have been attending so many meetings, but ICNL officials resisted every move to resolve the issue, until the Shippers Council finally ruled that they should pay us 70% of our losses. But up till now, ICNL has not paid us anything.”

Ahmad said the development affected his health, which made him to become a regular patient at the hospital. He called on all relevant the Federal Government agencies to intervene in his dealings with ICNL to help him get justice and reimbursement for his losses.

When The Nigerian Economy contacted a top official of ICNL, he said he had left the company. A phone contact obtained on the company’s website did not go through when a call was put through to it. Also a text message sent to the line was not replied to.

 

 

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The Nigerian Economy

The Economy is an online newspaper focusing on delivery of top-notch economic, financial and business intelligence reports for economic development. It is published by Samhapp Integrated Services Ltd., 1, Ojogiwa Street (1st floor) Off Idumagbo Avenue, Lagos Island, Lagos State, Nigeria, West Africa

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