Stakeholders and operators of Nigeria’s maritime and shipping industries have highlighted critical impediments to ease of doing business at Nigerian ports and borders as the country prepares ahead of the African Continental Free Trade Area (AfCFTA)
The stakeholders who converged at the breakfast meeting organised by the Maritime Reporters Association of Nigeria (MARAN) in Apapa on Wednesday agreed that even though some progress has been made to improve ease of doing business at the ports, all four pillars of efficient trade facilitation, namely, transparency, simplification, harmonization and standardization are still not properly engraved in Nigeria’s trade system.
According to them, Customs processes in Nigeria still need to be simplified, trade policies harmonized, with transparency in all stages of the importation process.
Chief Executive Officer, Centre for Promotion of Private Enterprises (CPPE), Muda Yusuf governments and policy makers in Nigeria are yet to appreciate the significance of trade as a key factor of the macroeconomy.
He said: “When we keep having problems with our importation, the economy cannot work well because Nigeria is heavily relying on importation. Even our raw materials are imported. When the importation process is tedious, the economy will be sick. This is why the government must pay close attention to our importation policies and make good policies to make the process easier.
“There is import and export content in President Bola Tinubu’s agenda, therefore both aspects of trade need deliberate favourable policies. We need to make the economy more competitive. We need to reduce shipping cost and demurrage expenses. In Nigeria we have only three days free demurrage; this is too small. We also need to reduce cost heads, as too many cost head heads cause delay in clearing of goods.
“Exchange rate computation is a major problem. You struggle to buy forex at N1500 and they now use N1500 to compute Customs duty rate; that is 100% increase. We must have some discretion when it comes to trade. When Customs rates are unfriendly, you also create problems such as smuggling, because people want to cut corners in order to reduce cost.
“For Effective trade facilitation, we must simplify our trade processes, reduce costs and not just about infrastructure. The Time Release Study of the Customs is commendable, let it be implemented to a successful end.”
Yusuf also stressed the need to reduce cargo dwell time at Nigerian ports and vessel turnaround time, which he said are longer than those of Benin, Ghana, Kenya and South Africa.
“Liner shipping connectivity index needs to improve. Ship turnaround time also needs to improve. Ours is higher than Togo, Benin, South Africa, Ghana and Kenya. Agencies in the port needs to be further reduced. Our logistics performance index is still very low; connectivity to the port needs improvement.
“Port infrastructure also needs improvement. Also, port connectivity to the markets means we need better road network. This will also enhance the performance of dry ports (Inland ports). The dry ports are operating below capacity due to poor connectivity. Our single window integration should be accelerated.”
Also highlighting hindrances to Trade Facilitation, former national president of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Lucky Amiwero said there is need for capacity enhancement on the side of licenced customs agents, especially in understanding the new Nigeria Customs Act 2023 and all the trade procedures in it.
According to him, while Trade Facilitation is to be driven by the Nigeria Customs Service, it must work in deep synergy with the Nigerian Shippers’ Council. He said the Customs Act also needs to be reviewed because it is too complex to pass the simplification test of Trade Facilitation ratified by Nigeria in 2017.
He said: “The Trade Facilitation concept of the World Trade Organisation (WTO) came into effect in 2013 and Nigeria became a signatory in 2017. It has 12 articles that touch on simplification, transparency, consistency and predictability.
Some of the articles in the new Customs Act need to be reworked…that Act is also complicated. It has to be reviewed. NCS has 70% responsibility for Trade facilitation process. AfCTA is starting soon and we must do all we have to do now in order to benefit adequately from it.
“There are more than 100 procedures in the new Customs Act that clearing agents don’t know because they had no training on them.”
Also emphasizing the importance of the four pillars of Trade Facilitation, Alban Igwe, consultant to the Importers Association of Nigeria (IMAN) said the main objective of Trade facilitation has traditionally been that of reducing the complexities and costs associated with cumbersome border procedures and control, while maintaining efficient compliance controls.
He highlighted measures for Trade facilitation to include Customs metrics, infrastructure, international shipment metrics, logistics competence, tracking and tracing and timeliness metrics.
Speaking on efforts by the Nigerian Ports Authority (NPA) to ameliorate difficulties in at the ports, NPA MD, Abubakar Dantsoho, who was represented by the Manager, Lagos Port Complex, Apapa, Charles Okaga said, Export Processing Terminals (EPT) were created to ensure that there is no delay in export processing and shipment.
According to him, export goods from the EPTs for shipment at the ports need no further examination or checks by the Nigeria Customs Service at the seaports.
He said: “While road construction and management is not the reponsibility of the NPA, the port authority has engaged made engagements at the highest level to ensure that roads leading to the ports are reconstructed and the roads are now cleared and free from traffic gridlock.
“Between 2022 and 2024, Nigeria has recorded tremendous increase in export and for the first time in a long time, we now have a positive balance of trade. In the past we were having only 40, or 50 containers brought to Apapa ports in a week, but now, we are having 122 trucks carrying 240 boxes into the port. We have now seen a 50% increase from 2022 figures and 15% increase over 2023 so far. This shows that we are doing well in exportation.
“Also, last year, there 9,000 train movements to and fro Apapa Port, but this year, even at half year, we have recorded 10,000 train moves.
“All cargo documentations are now done online, thereby reducing document processing time from 14 days to just a couple of hours now.”
The Nigerian Shippers Council (NSC) also gave report of a bright sector. Representing the Executive Secretary, Pius Akutah, an assistant director, Consumer Affairs, Mrs Ogbonnaya Austina said 90% of port processes are now automated, thereby reducing human interaction in the trade process.
He said: “The NSC has spearheaded and concluded establishment of Inland ports in Funtua, Kano and Kaduna and these Inland ports are already in use serving as ports of origin and destination. Importers and exporters in these areas do not need to come to Apapa Port to do business anymore.
“The NSC is also building Border Information Centres (BIC) to ease cross-border trade through data gathering to aid policy making. We now have these centres at the Seme Border, Niger and Cameroun and we are building two more with one at Idiroko border with the Republic of Benin. The Shippers Council will continue to partner with importers and exporters to keep improving on trade facilitation in Nigeria.”
