Economy loses N150bn annually to shipping tariffs

Steve Agbota

Strong indications have emerged that Nigeria’s economy loses about N150 billion annually due to  multiple taxes levied on Nigeria-bound cargoes by foreign shipping companies in the country. This was revealed in a study released at a one-day sub-regional summit tagged, ‘Unfair Shipping Surcharges and High Local Shipping Charges at Ports of West and Central Africa’, organised by the Nigerian Shippers’ Council under the auspices of the Union of African Shippers’ Council.

The study projects that local shipping charges imposed on exports would exceed N150 billion on a year-on-year basis. The levies are listed as, bunker adjustment factor; currency adjustment factor; war risk surcharge; congestion surcharge; and peak season surcharge. Others are listed as extra risk insurance surcharge, freight rates surcharge and port operations recovery surcharge.

In Nigeria interest, the Minister of Transportation, Rotimi Amaechi, who represented the Vice President, Prof. Yemi Osinbajo at the summit, faulted the introduction of the levies that lacked transparency.

According to Amaechi, the surcharges could be linked to illegal capital flight from Nigeria and the other West and Central African countries.

He added: “These surcharges amount to huge sums of illegal capital flight from countries in the sub-region depleting their limited foreign exchange/reserves.”

Following the illegitimate levies borne by Nigerian shippers, Amaechi ordered the Nigerian Shippers’ Council to perform a comprehensive audit of all seaports terminals in the country.

He explained: “This move is expected to curb the high shipping charges in West and Central Africa sub-regions and adopt a review of the charges to promote trade among countries in the sub-region.

He hinted that the Federal Government was fully aware of all the challenges shippers face while transporting goods through the port and gave the regulator the upper hand in auditing all the ports.

Said he: “The Federal Government has mandated the NSC in its capacity as the port economic regulator to carry out a comprehensive audit of all seaport terminals in Nigeria to ascertain their efficiency and competitiveness. Government will ensure that the outcome of the audit report will be fully implemented for improved port operation.