By Steve Agbota
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has warned that implementing the current multiple tariff hikes will discourage investment and the cost of clearing cargo at the nation’s ports.
President of APFFLON, Frank Ogunojemite, stated this yesterday while addressing journalists in Lagos on the Nigerian Ports Authority’s (NPA) 15 per cent tariff hike and the Nigeria Customs Service’s 4 per cent Free-on-Board (FOB) levy on imports.
He lamented the rate at which these tariff hikes are imposed on clearing agents and importers at the nation’s ports, without authorities considering current economic challenges.
“Well, Customs has suspended the 4 per cent FOB levy for now, but these tariff hikes here and there, if implemented, will further push up the cost of goods and add to the burdens of Nigerians and discourage investment, contradicting the government’s goal of promoting trade facilitation,” he said.
However, he pointed out the discrepancy between the new charges and recent pronouncements by the Minister of Marine and Blue Economy, Adegboyega Oyetola, who pledged to reduce the cost of doing business at Nigerian ports by at least 25 per cent through the implementation of the National Single Window (NSW).
He emphasized that there is a discrepancy between what the minister is talking about cost reduction and what NPA and Customs are doing with the recent increase in their charges.
Meanwhile, he called for clarification on the conflicting policies and said there is a need for a stable and predictable tariff environment to encourage importers and exporters.
He also urged the Customs to reconsider and reduce some of its import charges, including the 1 per cent Comprehensive Import Supervision Scheme (CISS), given the added burden that will come with the newly introduced 4 per cent FOB charge when implemented.
He called on the NPA to suspend its planned 15 per cent increase because of the prevailing economic hardship and the difficulties faced by Nigerians.
He carpeted the NPA for a lack of stakeholder engagement, as the agency did not consult with industry players before imposing these new charges.
“Increment in charges of any kind at this period is ill-timed and ill-advised considering that Nigerians are grappling with so many challenges including the removal of fuel subsidy, floating exchange rate, inflation, high cost of living, 50 per cent increment by the telecom industry, increase in electricity tariff, the new tax bill among others. It’s the same people that are being targeted with all these increments even though their earnings remain the same,” he said.
He called NPA to factor all these into the picture and see the need to halt its planned increment in charges to grow the economy and alleviate the suffering of the masses who are at the receiving end.