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Isaac Anumihe
Maritime industry is the most lucrative industry in Nigeria outside petroleum.
Between 2014 and 2016, the Nigerian Customs Service (NCS) generated over N2.5 trillion for the Federal Government.
While the agency generated N977,099,172,939.51 in 2014; it made N904,072,689,941.72 in 2015 and N647,295,101,275.51 by September 2016, totalling N2,528,466,964,156.74 into the government coffers.
Last year alone, Tin Can Island Command generated a total of N262.3 billion.
This was as the Apapa Area Command of the Nigeria Customs Service said it collected N350.9 billion as import duty between January and December 2017.
The amount represents 99.01 per cent of the command’s revenue target for the year.
The command said a total of 244,817 metric tons of exports worth N42.6 billion passed through the port as against 88,115.4 metric tons of export worth N52.5 million that were exported through the port in 2016.
Similarly, Nigerian Ports Authority (NPA) declared the sum of N299.56 billion as revenue for 2017 fiscal year, while Nigerian Maritime Administration and Safety Agency (NIMASA) within one year and one month, remitted a total of N21.805 billion to the Consolidated Revenue Fund (CRF) of the Federal Government.
A breakdown of the payments showed that the agency paid N9.975 billion to the CRF within the period under review.
Also, on June 1, last year, the agency remitted N5 billion into the CRF. The same way, it paid N4.975 billion on June 2; $7 million on November 22, 2016 and $15 million on April 19, 2017.
The agency on July 18, 2017, remitted $16.272 million to the CRF.
Another payment of $24.025 million described as “direct debit” by the Central Bank of Nigeria (CBN) was received from NIMASA accounts.
These revenues were made in spite of the crippling and debilitating obstacles in the ease of doing business. These include, lack of roads, power, rail and port charges.
According to the national president, National Council of Managing Directors of Customs Licensed Customs Agents (NCMDLCA) and Managing Director, Eyis Resources, Lucky Amewero, the export procedures from Nigerian ports is plagued with lengthy and cumbersome documentation process on export, multiplicity of regulatory/security agencies, high and duplicated terminals/shipping company charges, processes and lack of export infrastructure.
He frowned at the duplication of regulatory processes by various government agencies in export business Nigeria.
For instance, he said, the inspection of a container is conducted by pre-shipment inspection of export agents, Federal Department of Forestry, Federal Produce Inspection Service and the Plant Quarantine Service.
While pre-shipment of export company issues clean certificate of inspection (CCI) to carry out inspection pursuant to pre-shipment inspection, Federal Department of Forestry under the Ministry of Environment is involved in quality of products with documentation process and cost. After that, the Federal Department Produce Inspection Service and the Plant Quarantine Service take over in quality of product inspection.
These duplications of the four agencies, he said, need to be streamlined, as it constitutes serious bottleneck due to lengthy and cumbersome process and cost, which result to delays, that necessitate the movement of products to neighbouring West African ports and the rejection of products in international markets.
Furthermore, the process of clearance is associated with multiple interventions of various alerts that take days and increase the cost and time in contravention of World Customs Organisation (WCO) Kyoto convention on simplification and harmonisation of customs procedures.
Ideally, customs procedures should comply with WCO Kyoto convention and (FAL) Convention of (IMO) for Minimisation, harmonisation and simplification of customs procedure with regard to various checks after release from the port, Federal Operations Unit (FOU), CG Squad in line with international best practice of One-Stop-Shop process
Similarly, the Nigerian Ports Authority contravenes section 153 and 156 of the Customs and Excise Management Act C45 of 2004 that authorised the licensed customs agents and regulated by the Federal Minister of Finance on import, export and manufacturing; the port (related offences etc) Amendment Act 61 of 1999 which specifically authorised the licensed customs agents to operate in the port; the federal high court ruling on the dissolved board since 2012 and the letter from the Secretary to the Government that no member of staff register should operate without the constitution of the board
Amewero regretted that till date NPA forces licensed customs agents to register with non existing board before port pass is issued in contravention of the status and the high court ruling, which result to payment of huge demurrage by licensed customs agents.
“The freight forwarders are transporters by interpretation of Section 30 of Council for the Registration of Freight Forwarders of Nigeria (CRFF) Act, which arranges the movement and the carriage of goods along international boundaries, which excludes them from the port
The Section 153-156 of the Customs and Excise Management Act C 45 of 2004, Section 1-(!B) of the port (related offences) Act of 1999, and the Federal High Court Ruling on the letter from the Secretary to the Federal Government should be complied with.
There are overlapping jurisdictions by NAFDAC/SON on same products, which duplicates cost of registration, inspection, lengthy and cumbersome procedure on product regulation.
“Beside the government agencies, the shipping companies and terminal operators’ charges on storage contravenes section 20, 31 and 97 of the Customs and Excise Management Act that limits the days for rent charges and conferred authority to Nigeria Customs to charge rent after specific days by the board.
“Duplication of charges such as terminal delivery charges/ terminal and handling charges; deposit repayment delays and process procedure lack regulation of the economic interest in the port
“There is the need to intervene to address the cost of doing business through a total review of our procedure, process and cost in the ease of doing business” he said.
