By Steve Agbota
From industry records, Nigeria loses an astounding $500 million annually to inefficiencies and leakages plaguing the maritime sector.
The promise of efficient and profitable port operations remains stifled by rampant fraud, under-declaration and other unscrupulous practices that erode revenue and hinder economic progress.
To seal these perennial inefficiencies, the federal government introduced the Cargo Tracking Note (CTN) 20 years ago.
CTN is an advanced, automated system designed to accurately monitor and assess the type and volume of cargo entering Nigeria’s seaports over a defined period.
By providing real-time tracking and detailed insights into cargo movements, the CTN ensures a higher level of transparency and accountability in maritime operations.
The innovation not only fortifies national security by minimising the risk of illegal shipments but also stands as a strategic tool in enhancing the Federal Government’s revenue streams from seaport operations.
Port operators insist that if the CTN’s benefits are fully maximised, Nigeria is better positioned to streamline port processes, curb illicit activities and maximise economic benefits from its maritime sector.
However, despite the benefits of the CTN, the initiative, for indescribable reasons, remains somewhat in limbo while Nigerians continue to bear the brunt of a frighteningly inefficient port system.
The CTN, Daily Sun learned, has faced significant external and internal challenges.
For starters, there is a high-level power tussle, corruption scandals, and unhealthy rivalries between government ministries and agencies who ought to foster the initiative to full performance.
In contrast, Daily Sun learnt that Nigeria loses a remarkable $500 million each year due to the failure to implement the International Cargo Tracking Notes.
Over a span of five years, this has resulted in an alarming total loss of approximately $2.5 billion.
This considerable financial drain highlights the pressing need for reform within the maritime sector, with the adoption of effective tracking systems offering a transformative opportunity to halt such losses and unlock substantial revenue for the nation. During a recent investigative hearing on the circumstances surrounding the non-implementation of the International Cargo Tracking Notes, the Executive Secretary of Nigerian Shippers Council, Pius Akutah, said the International Cargo reiterated that Nigeria lost 2.5 billion in five years, and $500 million annually due to the non-implementation of the International Cargo Tracking Notes (ICTN).
While highlighting the importance of the system, the NSC boss said that the commencement of the initiative is in line with President Tinubu’s administration’s plans to diversify the revenue base of Nigeria’s economy.
However, Daily Sun has gathered that the International Cargo Tracking Note (ICTN) became a mandatory loading document for all shipments to Nigeria following its regulation in 2019.
The law stipulates that every cargo imported into the country—whether for commercial, business, diplomatic, or personal purposes—must be accompanied by a Loading Certificate, commonly referred to as the ICTN.
The introduction of this regulation was aimed at enhancing transparency, reducing fraudulent activities, and improving revenue collection in Nigeria’s importation processes.
By enforcing the ICTN requirements, the government seeks to strengthen the monitoring of cargo movements and safeguard the nation’s economic interests.
Meanwhile, as of September 2024, all efforts by the Shippers’ Council to implement the ICTN at Nigeria’s ports have proven unsuccessful. This has raised significant concerns among stakeholders, particularly freight forwarders and importers, who are increasingly frustrated by the lack of progress. Despite the government’s promises, there remains a widespread perception that it continues to pay lip service to the full implementation of the system. This delay not only hampers the effectiveness of Nigeria’s maritime operations but also undermines the potential economic benefits the ICTN could bring, further exacerbating challenges in revenue collection, security, and trade efficiency at the nation’s seaports.
Speaking with Daily Sun, an importer, Vincent Aroma, said the implementation of the Cargo Tracking Notes will save the nation’s revenue losses and reduce importation of dangerous items into the country. “In our recent petition to the Federal Government, cargo tracking notes is one of the major issues we raised. If the system can be implemented effectively, it will boost the nation’s ranking in the world bank ranking index in the area of ease of doing business. That is why we said the government must do what it takes to implement it this year,” he said.
He urged the government through the Nigerian Shippers’ Council’s management to ensure that effective machinery is put in place for the implementation of the CTN.
“Asides the billions of naira that could accrue to the Nigerian government in revenue from cargo tracking on the nation’s borders, the eInternational Cargo Tracking Note, also allows Nigeria as an oil producing nation to monitor the exact quantity of daily crude oil exports and curb the menace of oil theft,” he added.
Meanwhile, Head of Research at the Sea Empowerment and Research Center (SEREC), Eugene Nweke, called on the federal government to speedily implement the Cargo Tracking Note (CTN) regime to enhance Nigeria’s international trade security and port value adding system.
Nweke stated that, according to the findings of the SEREC, the trends within the port industry are increasingly shifting towards the integration of advanced technologies and innovations into cargo processing operations. This evolution includes the adoption of Electronic CTNs, API-based CTNs, and Blockchain-based CTNs, all of which promise to enhance efficiency, security, and transparency in the sector.
According to him, the Nigerian government, through the Nigeria Shippers Council, has recently approved the deployment of electronic cargo tracking notes for port operations—a major step forward for the country. The goal, he explained, is to reduce delays in cargo shipments and lower costs for importers by streamlining the process, making it more efficient and transparent—a development that benefits all stakeholders. Furthermore, he highlighted that the reintroduction of electronic cargo tracking notes is not only aimed at enhancing operational efficiency but also at combating insecurity and facilitating smoother trade across the nation’s ports.
“By providing an accurate and reliable system in place, ports can better track and manage cargo, reducing the risk of theft, loss, or damage. This, in turn, can help to increase trust and confidence in the trade process, making it more attractive to businesses and investors.
“Unfortunately, the implementation of this approved modest industry trade security and facilitation tools seems to be delayed for reasons not communicated to the industry stakeholders. To buttress our support for this modest industry clarion call for the immediate commencement and implementation of the CTN regime in our international trading space,” he added.
While highlighting the benefit of CTN, he pointed out that the cargo tracking note is still a relevant document in the international trade and port security system, even with the introduction of modern trade facilitation tools.
He said CTN provides a standardized way of tracking and managing cargo, ensuring that it is properly declared, cleared, and released.
“In shipping operations, the CTN remains a critical component of shipping operations and industry, providing a standardized way to track and manage cargo, ensure compliance with regulatory requirements, and mitigate risks associated with cargo transportation
“Indeed, the SEREC wish to re-echoe that, the CTN is an essential document in the ports system, and its relevance is not diminished by the introduction of new technologies and systems, rather, it is deliberate embrace to port industry trends and as such it is the way to go.
“It is pertinent to state that, the Nigerian Shippers’ Council has the onerous task to introduce and manage the system in a manner that would not add to the cost of doing business at the ports. This is a crucial consideration, as the goal is to facilitate trade, not to create more barriers or expenses to the shippers.
“On this note, we call on the Federal Government, especially, the Minister of the Ministry of Marine and Blue Economy to support the Nigeria Shippers Council, now the industry economic regulator to flag off the commencement of the Cargo Tracking Note implementation without further delays for port operational efficiency sake,” he said.
Also speaking with Daily Sun, the National President, National Council of Managing Director of Licensed Customs Agents (NCMDLCA), Lucky Amiwero said that Nigeria don’t need the cargo tracking notes, saying it is a waste of resources.
“It has been implemented before and I think that is it. Unless the cargo tracking note is tied to a service. Cargo tracking note is not a note that should have been used to make money for government agencies.
What are they tracking? Cargo tracking note is used in other African countries. It is tied to Customs revenue. That means if they are bringing things from abroad, they will tell you what is inside that container.
“Cargo tracking note was something that was designed to change the concept so that you will be able to know what is inside the container. Cargo tracking note is not to track containers and all the rest. There are two concepts of cargo tracking. One is cargo tracking by customers to track cargo. That one is to track cargo where you ship a consignment.
“Then you can track the cargo to the country where the consignment is going. That is quite different. But cargo tracking note is supposed to be tied to service. And what is the service? To be able to tell you what is in the container so that it can be used for the calculation of tax. That is why when it was introduced, I kicked against it and the government had to suspend it,” he added.
According to him, many things the government is bringing these days are things that accrue revenue for a few individuals, saying that is not how it is supposed to be done.
“If you look at other countries, a few countries that are implementing it, they have to tie it to Customs revenue. That means for value, for the quantity, especially for the quantity of the things you have in the container and for the value of the goods.
“So that it can assist the government in trying to calculate revenue. And especially to know what is inside that container in terms of security, in terms of arms, in terms of ammunition and all the rest. So it is not just a cargo tracking note. It’s not a note in that sense. It was designed for a purpose for you to be able to know what is, especially for security purpose. To stop importation of arms, human traffic and all the rest,” he explained.
He said if the system cannot be tied to service, government should not introduce it because it is not the government that is paying, adding that it is the importer and the agents that are paying most of the time and this payment is becoming too excessive.
He said there are many fictitious payments that are making the nation’s port very expensive, saying there are too many payments at the ports.
He said the cargo tracking note can be tied to a safe framework of standards because it has to do with securing trade, saying it is securing trade and it should be implemented on that basis.
“But the people who are implementing it are not Customs. And if you want to implement a cargo tracking note, you must bring it to Customs. You don’t take it to transport or take it to shipper’s council. No. It is to Customs.
“Because Customs is the one that is inspecting cargo. It is the one that will use that cargo tracking note to verify. So in case they will know what this container is containing and what they have declared.That is what it is used for in other countries that have modified it. To be able to bring up the system so that it can be workable,” he said.