By Steve Agbota
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Last week, the Maritime Anti-Corruption Network (MACN) unveiled a sobering revelation: Nigeria loses approximately $204 million annually in Gross Domestic Product (GDP) due to pervasive corruption within its maritime industry. According to the report, corruption inflates the cost of importing food and bulk products into Nigeria by around 15 per cent. Specifically, it adds $147,000 to the cost of importing each shipment of grain and over $187,000 per shipment of petrol.
The report further alleges that government officials solicit bribes for routine tasks, causing economic damage through ship delays, increased trade costs, and jeopardizing the wellbeing of seafarers by exposing them to potential criminal prosecution. If all bribery demands during vessel clearance were met without resistance, the annual cost of importing food and bulk products into Nigeria would exceed $162 million.
This rampant maritime corruption is responsible for a $204 million annual reduction in GDP and results in over 235,000 fewer Full-Time Equivalent (FTE) jobs due to decreased sales and economic activity. Experts emphasize that these corrupt practices, including hefty fines, bribes, demurrages, and police checkpoints, impose substantial financial burdens on companies, inflating transport and logistics expenses by nearly 15 per cent.
Stakeholders describe the widespread corruption as a major obstacle to leveraging the enormous potential of the nation’s ports. It stifles domestic trade and drives up the cost of goods for citizens. The Association of Maritime Truck Owners (AMATO) has lamented the severe corruption, extortion, and brutality inflicted by unauthorized individuals working in collusion with security agents, making life unbearable for maritime stakeholders, particularly truck owners, drivers, and port users along Lagos State’s port access roads.
The Daily Sun reports that the nefarious activities of both government and non-government actors have forced truck owners to increase haulage costs nationwide. Charles Okorefe, CEO of Kamany Marine Services Limited, likened minimizing port corruption to a camel passing through the eye of a needle due to its deep entrenchment. He highlighted corruption at various levels, from shipping companies and terminal operators imposing unwarranted demurrages and rent, to customs officials extorting money from importers, and importers under-declaring cargo values to evade duties.
Okorefe stressed the need for systemic reevaluation and mindset change among all agencies and individuals involved. He called for reorientation and asked critical questions about what incentives might deter corruption. Despite the establishment of the Ports Standing Task Team (PSTT) in 2021 to curb corruption, he observed little impact, suggesting the committee’s existence may be more about job creation than effective oversight.
During a maritime anti-corruption awareness campaign, Anthony Shaibu, President of Eagle Eye Transparency and Integrity Initiative (EETAII) maritime branch, labeled the maritime industry as the “headquarters of corruption” in Nigeria. He urged collaborative efforts to tackle the issue and called on the National Assembly and President Bola Tinubu to focus on the maritime sector.
Supporting the MACN report, AMATO’s General Secretary, Mohammed Sanni Bala, expressed frustration over extortion by government and non-government actors along logistic corridors. He detailed the rampant extortion at over 50 checkpoints between Ijora Olopa and the Apapa/Tincan ports, where truckers face brutal tactics and financial exploitation by security operatives, transport unions, and hoodlums. This extortion leads to unsafe truck conditions, as funds for maintenance are siphoned off, and hampers the free flow of traffic and cargo evacuation.
Truck owner Kunle Ajayi painted a grim picture of entrenched corruption within the maritime sector. He described corruption as normalized, with fabricated receipts and bribery creating human-induced traffic jams. Ajayi emphasized that these corrupt practices legalize what should be illegal acts, questioning why such corruption is tolerated.
In conclusion, the MACN report and testimonies from industry stakeholders highlight the deep-rooted corruption in Nigeria’s maritime industry. Addressing this issue requires concerted efforts from government agencies, the private sector, and civil society to implement effective measures and foster a culture of integrity.