By Steve Agbota
Nigerian exporters, under the aegis of the Association of West African Exporters and Maritime Professionals (AWAEMAP), have made a compelling call for the Nigerian Ports Authority (NPA) to revisit the costs associated with its Export Processing Terminals (EPTs). The exporters believe that the current pricing model is unsustainable and must be made more cost-effective, especially at a time when Nigeria is striving to remain competitive with other African countries in the fast-evolving global trade landscape.
The call was made by AWAEMAP President, Olubunmi Olumekun, during the association’s end-of-year summit held in Lagos recently. Olumekun highlighted the importance of revisiting the cost structure at the EPTs, emphasizing that Nigeria’s competitiveness in international trade, particularly under the African Continental Free Trade Area (AfCFTA), depends on how well it can manage the costs associated with its export processes.
“We are partners in progress with NPA, and we welcome the introduction of Export Processing Terminals, as they bring added value to our businesses,” Olumekun stated. “However, we still have some reservations that need to be addressed for this policy to be truly sustainable. The cost structure needs to be revisited.”
Olumekun further pointed out that for charges at the terminals to be justified, they must align with the services provided. “If we are being charged for services, the costs must directly correspond to the services rendered. There are several charges at the terminals that are not attached to specific services, and this is where we have an issue. Pricing must be adjusted to reflect the reality of today’s competitive market,” he added.
He stressed the importance of making the costs at the terminals more affordable, especially as Nigeria now faces stiff competition from other African nations. “At a time when Nigeria is competing with other African countries for trade, the pricing structure must be cost-effective. The high charges at the EPTs are a deterrent for many exporters, and this needs to be addressed urgently,” Olumekun noted.
Olumekun also urged the government to take a long-term view of Nigeria’s export growth. “If we are serious about improving our foreign exchange earnings, we must focus on growing non-oil exports. The future of Nigeria’s economy lies in expanding this sector. This is the vision of AWAEMAP — to create a thriving non-oil export economy, one that will be sustainable and driven by innovation.”
Olumekun further pointed to the enormous potential of the African Continental Free Trade Area (AfCFTA), which he believes could transform Nigeria’s economy. “AfCFTA presents a massive opportunity for Nigeria’s non-oil export sector, particularly in agriculture and other products. But to fully take advantage of this opportunity, we need to ensure that our exports are competitive, and that includes making sure that the cost of processing these exports is not prohibitively high,” he said.
However, Olumekun also highlighted some of the challenges Nigeria faces in utilizing the opportunities provided by the AfCFTA. “While the AfCFTA presents vast opportunities, there are still significant challenges that need to be addressed. One of the biggest issues is the high influx of foreign nationals into key operations such as barging and terminal management, which should be local content vocations. These areas are currently dominated by foreigners, and Nigeria must implement policies that restrict foreign participation in such critical sectors,” he asserted.
Olumekun called for a stronger regulatory framework that would empower local businesses and reduce reliance on foreign entities. “Nigeria must have a strong policy in place to restrict foreigners from taking over what should be local industries. Local content must be prioritized to ensure the sustainability of these sectors and create more opportunities for Nigerians,” he said.
In response to these concerns, Dr. Abubakar Dantsoho, Managing Director of the Nigerian Ports Authority (NPA), acknowledged the challenges faced by Nigerian exporters in the past due to a lack of effective regulatory mechanisms. However, he assured stakeholders that there have been significant improvements in recent years. Represented by Dr. Charles Okaga, NPA’s General Manager of Marine and Operations, Dantsoho reiterated the Authority’s commitment to creating a more seamless export process.
“The Nigerian Ports Authority recognises the challenges Nigerian exporters have faced, particularly in terms of weak regulation. But I can assure you that we have made significant strides in improving the regulatory environment,” Dr. Okaga said. “The Export Processing Terminals and transit parks have greatly eased some of the logistics challenges that previously hampered exports at Nigerian seaports.”
Dr. Okaga further emphasized that NPA is fully committed to making the export process as efficient and cost-effective as possible. “The improvements we have made in export logistics have already begun to show positive results, and we are committed to ensuring that the processes are further streamlined to better serve Nigerian exporters,” he added.
Comptroller Ajibola Odusanya, the Lilypond Customs Area Controller, also spoke on the role of the Nigeria Customs Service (NCS) in supporting export growth. He assured stakeholders that the NCS remains focused on fostering the growth of Nigeria’s export trade, particularly in the non-oil sector.
“The Nigeria Customs Service understands the vital role exports play in the country’s economy,” Odusanya stated. “We are committed to facilitating the growth of exports and will continue to support initiatives that enhance the efficiency of Nigeria’s export processes.”
He also reiterated the importance of collaboration between the government, regulatory bodies, and private sector stakeholders to ensure the sustainable growth of Nigeria’s export sector. “We must work together, as stakeholders, to create an enabling environment for the growth of exports,” Odusanya concluded.
As the meeting concluded, it was clear that both the government and the private sector are committed to making Nigeria’s export sector more competitive. With a shared focus on reducing unnecessary costs, promoting local content, and creating a more favorable regulatory environment, there is hope that Nigeria will soon see significant improvements in its export performance.