Why are the country’s ports considered the
most expensive in West Africa? It is because
of the multiple import charges, according to
investigations.
These charges are hindering the
government’s trade facilitation programme.
But, other sub-regional port, such as that of
Cotonou, are thriving.
Besides, tracing capability and speed, poor
yard planning and spacing, online
accessibility of pricing and quick debt note
reconciliation, among others, also make the
ports expensive.
Others include low level of automation and
integration of handling process by
government agencies with major
stakeholders, such as terminal operators,
importers, truck drivers and clearing agents;
poor infrastructure investment profile by the
government; unstreamlined movement of
containers per crane, per hour from ships to
stacking position and the trucks.
Association of Nigerian Licensed Customs
Agents (ANLCA) president, Prince Olayiwola
Shitu blamed the high cost of cargo
processing at the ports on these factors.
Importers, he said, clear many charges
before taking their goods out of the ports,
urging the government to address the
problem and reduce the cost of doing
business at the ports.
Importers pay Customs duties and levies
that are not uniform in most of the nation’s
sea ports. Other tariff that make the ports
expensive are the seven per cent
development levy; one per cent
comprehensive import supervision scheme;
0.5 per cent ECOWAS Trade Liberation
Scheme (ETLS); NIMASA/NPA Sea Protection
Levy (SPL); haulage cost – transportation per
TEU and terminal operator progressive stage
charges.
Importers also pay terminal operator
documentation; terminal operator
examination; terminal operator scan fee;
terminal operator scan loading fee; terminal
operator delivery; terminal operator terminal
handling and terminal operator labour fees.
They also pay shipping line demurrage;
shipping line agency; shipping line
documentation; shipping lines telex release;
Shipping line, container; shipping line
container deposit fees; terminal operators
two weeks additional advance rating
period; shipping line two weeks additional
advance rating period; shipping line
minimum of one month grace for container
deposit refund; freight forwarders
professional fee – unstreamilined; and
several inconsiderate charges at the
bounded terminals, among others.
The President, Lagos Shippers Association,
Mr Jonathan Nicol, said the five per cent
Value Added Tax (VAT) and the one per cent
Pre-Arrival Assessment Report (PAAR) charge
were some of the charges.
The others are the 35 per cent Automobile
Levy and the Common External Tariff Levy.
According to him, the combined charges on
one consignment affect shipper’s profit.
He urged the Federal Government to address
industrialists’ cry to reduce the charges.
According to him, the Federal Ministry of
Finance should provide leadership in
managing the problems of the shipping
community.
The shippers’ boss said the government
should think about the huge investments in
building the seaports and maritime
prospects in the next 20 years to attract
more cargoes.
Nicol also suggested that plans must be
made to secure and promote local
industries, the manufacturing sector and the
shippers.
He noted that it was the duty of the
government to encourage private
entrepreneurs to contribute to the
economy’s growth.
“When you add the costs of generating
power in a factory with salaries, these costs
cannot be by-passed whether you like it or
not.
“You must provide power for your factory
and you must pay staff salaries,” he said.
Nicol said the bottlenecks at the ports were
largely the reasons behind government’s
appointment of the Nigerian Shippers’
Council as the economic regulator.
He condemned the government’s inability to
enforce the Coastal and Inland Shipping Act
2003 (Cabotage Act) to enable indigenous
ship owners participate in crude oil lifting.
He said the government should implement
the law to allow indigenous shipping
companies participate in oil business.
A maritime lawyer, Mr Dipo Alaka, berated
the government for not streamlining the
charges.
“To make matters worse, importers and
clearing agents are compelled to pay
demurrage on containers for the numbers
of days containers remain at the port, even
when there is system breakdown caused by
the service providers.
“Importers used to pay for terminal
handling charges, container cleaning
charges, manifest amendment upon request
by an importer, container deposit
(refundable) and container demurrage,” he
said.
