Expert petitions Tinubu over unresolved 35-day demurrage waiver from COVID-19 lockdown

By Steve Agbota                                    

President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Mr Lucky Amiwero, has formally petitioned President Bola Ahmed Tinubu, raising concerns over the failure of terminal operators and shipping companies to refund a 35-day demurrage waiver that was approved by the presidency during the COVID-19 lockdown in 2020. Despite the presidential directive, the service providers have allegedly refused to return the funds, leaving importers and their agents frustrated.

The petition, dated August 28, 2024, outlines how, four years after the presidential approval, importers and their agents are still battling to recover the wrongly charged demurrage fees. The waiver was initially granted to mitigate the impact of the nationwide lockdown on business operations, which significantly disrupted port activities and the ability of customs agents to facilitate cargo clearance.

Amiwero emphasised that the relief was formally communicated through a letter from the Presidency (reference ECD/P/251/IV/T/14) on April 6, 2020. This letter directed terminal operators and shipping companies to waive rent and demurrage charges for 35 days, a period marked by severe restrictions on both private sector activities and government operations, particularly affecting Licensed Customs Agents (LCAs).

He explained that the presidency’s directive was based on several critical factors: LCAs, who play a vital role in clearing goods, were unable to access ports and bonded terminals due to the lockdown. Additionally, the closure of banks—essential to processing transactions—hindered their operations. Agents were also cut off from crucial regulatory bodies such as NAFDAC and the Standards Organisation of Nigeria (SON), further complicating the clearance process. Moreover, the lack of transportation options due to the global movement restrictions severely limited agents’ ability to perform their duties, all of which justified the waiver under the principle of force majeure.

Amiwero revealed that despite ongoing correspondence between the Nigerian Ports Authority (NPA)—the federal agency responsible for implementing the COVID-19 relief measures—and his association, there has been no progress in securing refunds. He accused the NPA of colluding with terminal operators and shipping companies to unlawfully collect the waiver fees and subsequently refusing to honor the presidential directive for a refund.

“NPA, in collusion with terminal operators and shipping companies, wrongfully backdated the waiver period to prevent refunds. This illegal action has left importers without recourse, despite the presidency’s clear directive,” Amiwero stated.

He added that detailed records of invoices showing the amounts wrongfully paid by importers and LCAs were submitted to the NPA as far back as 2020. However, despite the clear evidence and the federal government’s orders, the refund process remains stalled due to the refusal of the terminal operators to comply.

Amiwero’s petition underscores the ongoing challenges faced by stakeholders in the Nigerian maritime industry as they continue to navigate the unresolved financial burdens stemming from the COVID-19 lockdown.