Personality Interviews
SPECIAL INTERVIEW: LACK OF DELIBERATE POLICY TO DEVELOP EASTERN PORTS PERSISTS, PROMOTING ILLEGALITIES … says Chief Nwagbara. ….Cautions Ship Owners To Stop Lamenting; Procure ‘Writ of Mandamus’, Sue FG To Disburse CVFF Under Compulsion.
The creation of a separate ministry for the maritime sector last year is a monumental achievement of the Tinubu administration stakeholders are hailing. In this special interview, foremost maritime lawyer, Chief OSUALA EMMANUEL NWAGBARA, congratulates the President for granting a long-standing wish of stakeholders and others who are passionate about the need to make the best out of the maritime sector.
The revered Chief has critical interventions on how to run the show now to enable Nigeria achieve the gains and prominence in the comity of maritime nations globally.
He spoke to IZUCHUKWU OZOEMENA.
Q: The Marine and Blue Economy Minister recently clocked a year in office. But stakeholders worry that for the past one year, nothing to show for it. It’s been more of motion without movement. What’s your take?
ANS: My take is that it’s been business as usual. There’s no clear direction yet as far as the ministry is concerned. We need pronouncements and declarations as to where the ministry is headed. The Minister has celebrated one year in office. We need to have a very clear path as to where he’s headed. Unfortunately, many agencies under the Ministry of Marine and Blue Economy dish out figures they are apparently proud of. On the face value, these figures are attractive but appear not real. This also misleads the Ministry because, sometimes, you see the Minister come out to flaunt these figures that in the segment of the economy, much and much have been earned within a space of time. But the truth is that when you look at these figures and reckon that the Naira has been devalued about 400% in the last one year – from about below N500 to a dollar slightly one year ago to over $1,600 right now, it gives 400% to 500% devaluation. So, what figures these agencies flaunt have to be divided by 4 or 5 and you discover that they are far below the revenue that accrued to the Marine and Blue Economy a year ago. And, in fact, you’ll not measure up to 30% of what was earned about a year ago.
It’s actually a minus balance sheet we’re seeing in real terms. We need a clear direction. One, we need to know what the Nigeria Customs Service is going to do to rejuvenate the economy. We need to know how NIMASA should operate to rejuvenate the economy. We need to know what the NPA should do to attract more vessels to our ports. Now that we have a deepsea port, what is the policy of government to promote transit cargo, for instance?How can Nigeria beef up her revenue profile from transit cargo? That used to be a very large chunk of the earnings from the maritime industry before this time. Because of lack of policy direction to deliberate on and intentional policy to promote the maritime industry in Nigeria, we lost transit cargo to ports of Lome, Cotonou and, recently, Ghana. Now that we have a deepsea port, we need to bring back the transit cargo status and earn a large chunk of revenue from there. We need a clear policy direction from there.
Prince Lateef Fagbemi, SAN, Attorney-General and Minister of Justice
Q: Nigeria Customs keeps posting homongous revenue collections even as throughput in the ports keep dropping by the day due to unfriendly trade policies of government. Can you reconcile this?
ANS: Exactly! There’s no particular policy that can succeed in isolation of others. The Nigeria Customs Service should go back to the basic elements of success in business. From day in one, Nigeria Customs Service was set up not only to control the entry of goods allowable into the country but to make revenue just like the Federal Inland Revenue Service (FIRS). The difference is while the FIRS is internal, the NCS deals on imports and excise duties.
We recall what is called small-profit-quick-turnover. This means you have to turn over your volumes and the aggregate of the profit you make from frequent turnover which will aggregate to selling more goods. When you hold onto your small quantity of goods and hike the price to make big profits, the time over which you turn your goods are less in number than when you earn small profits with quick turnover.
So, why will the NCS charge millions on an imported car, for instance, leading to a drastic drop in the number of imported cars? Why can’t Customs drastically reduce the import duty on cars to encourage people bring in more cars? As we speak, the annual rate of imports as far as cars are concerned has dropped to about 40%. Many of the terminal operators that deal on car importation now have their businesses going under. Go and investigate. Many of them will leave the country very soon. That’s as a result of the unfriendly business policy of the Nigeria Customs. So, we need a clear direction for Nigeria Customs and that means that the Ministry of Marine and Blue Economy should work in tandem with the Finance Ministry which controls the Customs. Working together, they should be able to fashion out a policy direction that will boost government revenue even much more than what we see today, more than that, create jobs for the millions of Nigerians who depend on these ports to live and thrive. It’s not difficult to decipher! You have the number of cars coming, you have car marts, you have young men who are busy everyday marketing the cars, you have people ready to buy these cars as taxis or on hire purchase and earn their daily bread from there while making returns. These are opportunities to create jobs. Beyond that, people also buy cars for private use and for quasi-commercial purposes. Again, it makes life easy for people.
So, we need a clear-cut direction on how Customs can generate more and REAL REVENUE, not just flaunting figures. On the electronic scoreboards in their offices, you see billions they send to the Minister who comes out to say ‘we’re doing very well’ when, in real terms, we are performing less than 30%. The revenue is from the ports system. Even though the Customs is under the Finance Ministry, an ultimate liaison should exist with the Marine and Blue Economy Ministry.
Without the ports (under the Marine and Blue Economy Ministry) there will be no customs ports. Customs makes more revenue from the ports which belong to the Marine and Blue Economy Ministry than even the border posts. So, they’re all interwoven. The Marine and Blue Economy Ministry, working in synergy with the Ministry of Finance should come out with a clear policy on how the NCS, working in the ports, should reflate this economy through revenue collected on imports and excize. This economy is sinking.
The Marine and Blue Economy Ministry is a coordinating ministry, one of the most important ministries in this country because her mandate goes beyond marine and blue economy. The Ministry can promote maritime tourism, fisheries (which belongs to Agriculture), communications especially relating to underwear cables in the oceans which must not be disconnected. The Ministry plays a role in promoting communications.
How do you fish? How do you ensure sustainability in the fishing sector by preserving the marine environment, fishing and taking the parent stock in a way to as well protect the younger ones to grow by ensuring that the habitat is clean and safe for them? By the way, is it only fish that is in the marine environment we can harness in this country? I remember what they call marine noddles and a gentleman who promoted its sale. I’d like a research in this direction. It’s a kind of seafood valued in Asia and we don’t know much about it. Sri Lankans used to export it from Nigeria. For them, it’s a very expensive delicacy. There are many other marine lives we can export from this country in addition to fish. We need a clear direction in this sector from the Marine and Blue Economy Ministry working together with the Agriculture Ministry.
Because of the importance of security to businesses, there’s need for a coordinated approach among the ministries. If we are able to properly coordinate with the Ministry of Communications, we’ll be able to control the level of insecurity on our waters. Tell me, if the Marine and Blue Economy Ministry collaborates with Communications to ensure that every boat plying our waters is equipped with marine radio and communicates, for instance, it means that if there is any attack from bad elements, they can easily communicate, putting a distress call and rescue will come. Even marine accidents will reduce and if this happens and people are comfortable moving on our waters, it is more business for people living in the riverine areas as they will be able to move their goods freely.
Q: It’s being suggested that the Onne Port be blacklisted for frequent entry of illegal arms. Some persons see this as a continuation of the politically-motivated measures to stifle eastern ports in favour of Lagos ports. From the perspective of a maritime lawyer, what’s your view about the arguments on ground?
Ans: I don’t see it as a strategy for the continued neglect of the eastern ports. Onne Port and, indeed, the eastern ports have been neglected for a very long time. Because of this, there is the tendency and a possibility that some people may want to use the port to import unauthorized goods. Let me give a scenario. Why do bandits attack trains on Nigerian rails? It is because there is no frequent movement of trains. In countries where the rail lines are busy, every five minutes a train passes through the rail line. A bandit cannot waylay or stop a moving train, knowing that in another five minutes, another train will be close unless he wants to commit suicide.
If you develop Onne Port, activities go on and all government agencies are there working with their eagle eyes. If anybody thinks of importing illegal arms through the port, chances are that he will caution himself not to engage because once it lands, if one agency doesn’t see, the other will detect. But if you notice that it is once in a blue moon that the cargo comes and the terminal operators are even excited that they have something to clear,
there may be that temptation not to scare the few importers by scrutinizing everything imported. That can give crooked businessmen opportunity to bring in unwholesome goods through the port. But if the government had given attention to the port and there’s regular flow of imports, exports, regular performance of duty by all agencies in the port, chances are that before anyone plans importing prohibited goods through Onne Port, he will think twice. So, while I do not agree with suggestions on the possibility of blacklisting Onne Port or see it as a strategy to completely sideline and under-develop the eastern ports, I also believe that lack of a deliberate policy to develop the eastern ports is also promoting illegalities in those ports. It is not only in the eastern ports that you see illegal importation of goods. Even in ports in Lagos, Tincan and others where traffic is regular, you still record illegal importation of cargo including drugs. So, a dog should not be given a bad name in order to hang it.
Attention should not be denied the eastern ports in terms of development because of infractions. If anything, what we are seeing there should encourage more attention to the eastern ports to ensure that activities pick up and create employment. Beyond reports of occasional illegal importations, people also complain of insecurity around Onne Port. Why is it so? Onne Port used to be a 45-minutes drive from Port Harcourt but today, it takes more than two hours. As a result, there’s a lot of insecurity around the port just as in other eastern ports that are neglected. Government should give attention to the port, the port environment and access roads. When the environment is properly lit, channels are clean, the draught is deepened, quays are renewed, all technical equipment that make a port put in place and personnel do their work when they should; above all, NPA directs vessels to Onne Port and keeps the port busy because it has the powers instead of allowing vessels queue up here at the Lagos anchorage waiting to berth and some berths are idle.
Why not make Onne Port an export hub? Some two years ago, we thought NPA had taken a decision to promote exports when over 600 containers taken by one of the Maersk vessels visited Onne. We were all happy about it and expected that more would be done. If the arrangement had continued along that line to make Onne an export hub by promoting cargo movement using barges and small vessels to move exports to Port Harcourt, you’ll find that all the threat about blacklisting the port will be gone as the situation will take care of itself. We need to be deliberate about developing this country through the ports system. That is very key if we must develop the maritime industry in Nigeria.
H.E. Adegboyega Oyetola, Minister of Marine and Blue Economy
Q: People complain of what appears a deliberate delay to renew ports concession. What are the legal implications?
Ans: It’s beyond legal implications! It also has economic implications. You have a concession arrangement that gives you a 10-year, 15-year, 20-25- year period or more from 2005. Many of them with short tenures have expired. We still notice deficiencies in the ports system and amendments are supposed to be incorporated in any renewal arrangement. We have called for public hearing on the renewal because it is not a thing you can go into a conference room and take a decision. You need to throw it to the public, engage stakeholders. Are there things that are supposed to be done before a renewal is granted? These are the questions stakeholders will ask and expect answers. Why are stakeholder recommendations in different fora over the years not being implemented? Is it not an opportunity to incorporate these into any renewal arrangement? We have consistently called for stakeholder engagement before the agreements are renewed. But because those entrusted with ports concession are afraid of coming to the public domain to tell us how they have managed the concessions granted. Maritime stakeholders including lawyers, clearing agents, shippers, terminal operators, etc, will ask questions. Nigerian economy watchers will also ask questions because the port system is part of the Nigerian economy.
Nigeria is not the only place in the world where you have the landlord port model. Why is the efficiency in other climes so good? It’s not about promoting the number of vessels that call at the ports which we have seen since 2005 when concessions were granted. It’s not about increasing cargo throughput which has declined in recent years because of bad policies of government. It’s not only about improving infrastructure in the ports. What’re the benefits of concession to the economy? It shouldn’t be a facade! You get to the port and see new equipment- cranes, well paved port environment, new paints on the quay aprons, vessels coming more often and more cargo throughput. It’s beyond these. What is the benefit to the economy? What aspect of the economy have we recreated? What is the impact on workers in the maritime industry; reduction of unemployment in the maritime industry? These are the critical questions a public debate on the renewal of port concession will elicit.
Why is it that we still have policy somersault after concessioning the ports? Why is it that following the concession, rather than all terminal operators being happy to create more jobs,they are closing down today? Why is it that after concession, at a point, workers in the terminals, shipping companies are being denied support they hitherto enjoyed? What are the benefits to stevedores, seafarers, sailors,dock labour, shipping company worker, technical and operational staff in the terminal operator’s office? What improvements have we had in the skills of Nigerians working in the port sector? What special advantage has it conferred on them? So many questions will be thrown up in the public space when the issue of concession is debated and a report given about how far it has operated, who operated it, the upsides and downsides, the expectations- whether met or dashed. When these are satisfactorily addressed we shall have a port concession that is so called.
Q: Nigerias can never get tired of discussing indigenous shipping development no matter how long it takes the FG to play with the beleaguered CVFF and its disbursement. From the legal point of view, what’s the way forward?
ANS: This fund belongs to Nigerians and the segment is ship owners. The way forward is ship owners should come together and take NIMASA to court, take government to court and obtain an order of mandamus to disburse the CVFF. Until that happens,the Cabotage Vessel Financing Fund will not be disbursed.
It is now 20 years, regime after regime. The Cabotage Act was promulgated in 2003, it started working in 2004 and ever since, the collection continued till date. As we speak, it’s only a writ of summons that can compell NIMASA, as a public officer, to disclose how much that has been collected on behalf of ship owners who are the real owners of the fund. No other persuasion, no other demand can do that and get it done accurately. Not even a demand under the Freedom of Information (FOI) Act. The writ of summons will compel The Presidency, Attorney-General of the Federation, the FEC, the Minister of the Marine and Blue Economy all together to disburse the funds to Nigerian ship owners. But before then, Nigerian ship owners must come together, form a common front and set up a special purpose vehicle in the form of a shipping company where ship owners will take up shares, have their seed capital because there’s a requirement that a ship owner must contribute a particular percentage of the fund he requires. Going by the CVFF disbursement guideline, there is a percentage of it the PIL and other interests must contribute. We make these contributions to arrive at at the 100% value of the ship to buy.
If it is only one big vessel they are able to buy, I tell you we would have seen a tangible contribution of the Marine and Blue Economy Ministry to the Nigerian economy. For instance, if you have a crude carrier of say, 20,000 metric tons, which, by today, should be in the region of about $70 million partaking in lifting Nigerian crude, do you know how much forex it will earn for Nigeria? Do you know how many Nigerians will be employed on the vessel? Can you imagine the multiplier-effect of the vessel operating on the Nigerian economy and, by so doing, positively rubbing off on Nigerian citizens? So, there’s a whole lot that can be done!
Ship owners need to use the court system. I am happy the current Attorney-General of the Federation, Prince Lateef Fagbemi, SAN, a good-natured man, appears to want to play to the rules and would want to do positive things as we see in the local government autonomy court matter we are celebrating. He will advise the government to obey. We have had enough rhetorics on this CVFF thing. I am sure that as soon as it gets to that level of (legal) persuasion, government will do that as the lack of disbursement of the CVFF is one of the banes of the domestic shipping and the maritime industry in Nigeria.
Personality Interviews
”NATIONAL SINGLE WINDOW WILL CUT CARGO CLEARANCE TIME BY 75%,” NAGAFF President, Tochukwu Ezisi says.
Q: The Federal Government is set to launch the National Single Window platform in the first quarter of 2026. How prepared are freight forwarders for this?
Ans: The first phase of the National Single Window will be launched on March 27, 2026, and it will be a thing of joy to freight forwarders. The NSW is a government initiative designed to enhance trade facilitation in Nigeria. It will reduce cargo clearance time by at least 75%. The Nigeria Customs Service has developed the Time Release Study, and with the Single Window in place, that study will be significantly enhanced — you will see things working much faster. For us, it is a very welcome development.
Q: Will the NSW truly facilitate trade? Is it to the benefit of freight forwarders?
Ans: Absolutely. The National Single Window is entirely about trade facilitation. When you bring all the relevant agencies onto one platform, every party can see what the other is doing in real time. Instead of going from one agency to another, back and forth, everything is in one place. That makes the clearance process faster and far less stressful. It is a major step forward for the industry.
Q: Considering the history of technology and infrastructure challenges in the sector, what are your concerns about the NSW?
Ans: In anything you do, you prepare for the worst. But the National Single Window has the full backing of the Federal Government. If any agency attempts to pull out or truncate the process, it means that agency is, in effect, challenging the authority of the Federal Government. Are they saying they are bigger than the Federal Government? Every agency is expected to key in.
Yes, we anticipate some teething problems — that is to be expected, especially with network challenges that are common in Nigeria. But from what I have seen of the NSW’s security architecture, I am confident they have what it takes. Even when issues arise, they will be resolved quickly.
Q: With the introduction of the NSW, do you expect the cost of cargo clearance to reduce?
Ans: Definitely. Bringing all these agencies together on one platform will naturally drive down costs. I do not expect stakeholders to spend more; I expect them to spend less. When everyone is visible to each other on the same system, they will be more accountable and more efficient. That transparency alone is a significant gain for this industry.
Q: What is your message to freight forwarders about the NSW?
Ans: My message is not only to NAGAFF members — it goes to all freight forwarders across Nigeria. There is an end-user training ongoing nationwide, and I strongly urge everyone to embrace it. It is very, very important. The turnout over the past few days has been encouraging, but I still want to appeal to those who have not yet registered — please do so. It is a hands-on training, it is free, and meals are even provided for participants. Do not wait until the platform is live before you start asking questions. The opportunity is here now; take advantage of it.
Q: You mentioned that the NSW will cut clearance time significantly. What is the current average time for clearing cargo from Nigerian ports?
Ans: To be honest, under the Customs Time Release Study, if your declaration is in order and there are no complications; your goods can be cleared within three to four days. And if your declaration is completely honest, goods can be out of the port within 48 hours. That is why I always emphasise honest declaration — it is the single most important thing a freight forwarder can do to speed up the process.
Q: At the start of 2026, your New Year message to members stressed the need for compliance. How has that been received?
Ans: The message resonates with what we are discussing now. Honest declaration is the key — I said it then and I will say it again. When our declarations are honest, the job becomes easier and faster for everyone: easier for Customs, faster for us the freight forwarders. I continue to implore all freight forwarders in Nigeria — honest declaration is in our own best interest and in the interest of the country.
Digital freight forwarders’ group, the African Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has refused to be cowed by criticisms of her concerns about what it describes as an unjust tariff hike by the West African Container Terminal (WACT), Onne Port, raising fundamental questions about the foreign terminal operator. In this personality interview granted Falcon Watch Online Daily recently, APFFLON chieftain, Otumba Frank Ogunojemite, raised fundamental questions about WACT and expressed worry that for whatever reasons, the Nigerian Shippers’ Council (NSC) appears complicit in this operational illegality.
Otumba Ogunojemite also discussed the rejuvenated Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), the new Registrar and other matters.
Izuchukwu Ozoemena reports
Q: Your organization, the African Association of Professional Freight Forwarders & Logistics of Nigeria (APFFLON) is being accused of constituting an opposition to other freight forwarding groups and regulatory agencies. Do you agree?
Ans: I don’t know where the view is coming from that some people are operating illegally when you do not do your homework properly before going public. This can lead you to jail. That was the reason we had about 16 court cases when we started . CRFFN was not excluded as we took them to court. It was a dialogue with Abubakar Tsanni, the CRFFN Board Chairman, that resolved the matter out of court.
Kingsley Igwe, Registrar/CEO, CRFFN
So, when someone says APFFLON is attacking anybody, he is ignorant and not conversant with what is happening in the industry. When you’re pushed to the wall, you don’t resort to thuggery; you resort to justice. Justice is what can bring satisfaction. When you are dissatisfied with judgement, you go to appeal court rather than resorting to thuggery. So, you don’t just brand somebody without doing your own work. That’s careless talk.
We have a robust relationship with the Nigerian Shippers Council. They’re the only agency that has visited this office (the APFFLON Secretariat). But when you are taking decisions that can inflict pains on the citizens and the economy; when you are making decisions contrary to the Federal Government’s agenda, it’s a different matter.
During the National Single Window discussions, the FG admitted that the cost of doing business in Nigeria is very high and looked for ways to reduce costs to 25%. It’s not up to 60 days some people came up with 80% and 100% increament which, to us, shows injustice and an attempt to sabotage the FG’s initiatives to address port costs. Because we have a relationship, we wrote you to say ‘please look at this issue critically’. You ignored the letter. What d’you expect us to do? Do we have to leave the citizens to keep crying? Do we have to close our eyes for the economy to keep bleeding? Do we have to close our eyes on the need to alert you on what is contrary to the FG’S initiatives on port reformation and cutting costs? However, discrepancies on decisions will not affect our relationship.
Pius Akutah, ES/CEO, Nigerian Shippers’ Council.
Q: What is the problem with operations at the West African Container Terminal (WACT), Onne, which you are kicking against?
Ans: The problem is tariff increment. It’s exactly the same time last year you increased; this time, you’re increasing. The Shippers Council said this increment was by the past Executive Secretary. If the past ES agreed on an increment, can’t the present ES do a review? The person that left did not finish his first term, talkless doing a second tenure. When we now have you onboard, you must be able to assess what was implemented in the past. If it has issues, you can suspend it. We have to reference how the Nigeria Customs suspended the 4% of FOB charges. So, why are you remaining adamant in the same industry, in the same country?
We suspected a compromise between WACT and the Nigerian Shippers Council. This has given us an insight into the establishment of WACT. How did they come to be? How long have they been there? For how long will their contract last? Are they going to have the contract for ever? These are the things that call for clarification. Don’t forget, WACT is a sister company of APMT. What is the synergy there? We need to review all these. Originally, they are from Maerskline, a foreign company. Do we fold our hands for our funds to be on capital flight? Do we continue to fold our hands and see our businesses go to foreign countries? Do we fold our hands for smuggling to continue to rise and cost of operation become unnecessarily expensive in the country? That is what calls for alarm.
Q: Pinpoint a particular way your group is suffering a disadvantage from the tariff hike by WACT.
Ans: Directly, we don’t suffer anything from the tariff hike . But indirectly, every citizen of Nigeria is suffering the high cost of living. You can check up the per capital income of individuals. For now, 20 governors are not paying the N70,000 minimum wage. But you are doing a yearly increment in the same market, in the same country. These people are very smart: they make 100% storage that will negatively affect the people. They look for an area to make money. What things justify the increment? What are they doing new? Is it the salary increment or tax increment or community support increment?
Look at the situation of things in Onne. We were there to notice that the villagers remain what they are. What are they doing differently? It’s high time we all came together to look at how to address the issues of this country. We will not continue to remain silent. APFFLON will continue to stand out and say the truth.
Q: It appears APFFLON is the only association out to say these things the way they are. Others are not saying much. Do you suspect something?
Ans: There are so many associations and issues in the industry. When we are addressing the WACT matter, other associations may be addressing other issues. For instance, haulage from Apapa, Tincan to Trade Fair, Mainland is now very costly. The network problem from banks is another matter.
Sometimes you want to capture, the bank gives you 2 or 3 days yet you cannot pay your duties. We have so many issues to bring to the table and address together. If you think they are not talking as expected, that you are a slow responder does not mean people are not talking. I read where Chief Emenike Nwokeoji of ANLCA reacted and lampooned Nigerian Shippers Council on this increment. Instead of talking about that, they’re talking about APFFLON.
It is high time the media asked the CRFFN why APFFLON is not acredited, despite her inputs so far. When someone says you are operating illegally, he should explain why and how.
Q: Government has been foot- dragging on the renewal of ports concession to private terminal operators. Is this proper?
Ans: It’s not proper. You know the reason for ports concession is the inefficiency of the Nigerian Ports Authority. Ports were concessioned to improve effectiveness and reduce costs. But what we are seeing now is exploitation by shipping and terminal operators.
After COVID 19, I expected the FG to look critically at the concession review. That time, the FG gave a directive that all consignments should be free from charges. But despite this, they collected rates from people. Shippers Council was almost losing control in trying to address the issues. We took pity with the Council for not being in control as they do not have legislative powers. That’s why we seconded them to appear on a bill so that they could have the power to be able to punish offenders. But looking at the way they are handling things now, we are beginning to feel that they are still incapacitated to handle this people even if the bill is passed.
If they cannot control the WACT tariff because somebody has agreed with them, an agreement that is not in the Act, that can be re-visited, we doubt their capacity to handle the ICTN.
Whoever is to lead this country must operate democratically. When an alert on an idea is given to you by an organization you know that has been with you for so many years, you should be able to listen and feel the pains of the citizens of this country. You should be able to support the FG’s initiatives, not going contrary to them.
So, the issue at hand is how do we survive in this country? What is going to be the contribution of each of us? Our pain is not personal; it’s for the citizens of this country. It’s for importers and exporters of this country because maritime is the economic catalyst of any country. Before the evolution of oil, maritime has always been there.
Look at the dwelling time and what they call war risk insurance. This is the amount charged a vessel on the sea as it sails through an area susceptible to piracy attack or robbery. Nigeria is one of the highest globally because shippers do not feel safe to ply our shores for fear of hijack. What is the Shippers Council doing? What’s NPA doing? What are leaders in the industry doing? Many of us in the industry do not even know what is called war risk insurance. A vessel pays $30,000 for how many days? Where will it get the money? The cost is coming back on the citizens who eventually consume the goods or services the vessels carry. Maritime theft, illegal fishing, all over, Nigeria is losing money and they are there increasing tariff. What they are looking for is an avenue for government to make more money at the expense of the suffering masses.
APFFLON will continue to do its best – advocacy. We continue to address issues as they are. We congratulate the CG of Customs following the achievement of PAAR. People have been wondering why we did that. If Webb Fontaine was not suspended, would there be B’Odogwu today. If you follow the antecedents of APFFLON in the industry, you ‘ll know that we do not joke with the issue of server provider. We are the only association that brought together the Senate and House of Reps on the issue of Webb Fontaine. The record is there.
Personality Interviews
TRADE FACILITATION: FULFIL CUSTOMS REQUIREMENTS, ENJOY AEO, B’ODOGWU, says Ayokunle.
Hon Sulaimon Ayokunle, the elected Secretary of the PTML Chapter of the Association of Nigeria Licensed Customs Agents (ANLCA) is the CEO, Sula Marine Gold Ltd and SSA (Media) to the National President of the Association, Mr Kingsley Emenike Nwokeoji.
On the sidelines of the inauguration of chapter executives of the body in Lagos, Thursday, Hon Ayokunle spoke to Falcon Watch Online Daily on some trade facilitation platforms the Nigeria Customs Service (NCS) is currently implementing including the AEO, B’Odogwu, etc. How do these and other trade facilitation tools ultimately affect the operations of the average ANLCA member? According to impression in certain quarters, are customs clearing agents and other stakeholders not being subjected to payment of additional duties and loss of marginal profit they ought to make as return on investment?
Izuchukwu Ozoemena reports.
Q:
The Authorized Economic Operator (AEO) in trade facilitation is currently trending. Is it of any benefit to the customs clearing agent in the present dispensation?
Ans:
The creation of the AEO shows that it is an advanced model of fast-track procedure for cargo clearance. For you to be a beneficiary, you must meet up with certain criteria set out by the Nigeria Customs Service. What is the importance of fast-track? Fast-track is to facilitate trade for low risk importers. I’m talking about importers that are very low in risks such as manufacturers of goods who bring in homogeneous consignments in quantity. The introduction of the AEO is an advancement just to make sure that as the vessel arrives, you can take delivery of your consignment seamlessly. But you must be able to be up to the task because the condition is not just lower in terms of criteria to that of the fast-track beneficiary. It is an improvement on fast-track procedures introduced by the Customs.
Q:
Even as the AEO regime is in place, Customs talks about B’Odogwu, another trade facilitation tool. There are concerns that insufficient stakeholders sensitization should have preceded the simultaneous introduction to avoid confusion. Your take!
Ans:
They are two different things. AEO, as it is known, is basically for importers that are near 100% compliant. AEO is an improvement on fast-track procedures while B’Odogwu is now the new face of customs clearing machine. B’Odogwu is a process; AEO is a procedure. B’Odogwu is a clearing machine coming from NICISS 11 run by Webb Fontaine. When you talk about B’Odogwu, it is what we already have in the system for everybody. Whether you’re on fast-track, diplomatic or physical examination, you must pass through the B’Odogwu clearance machine.
Formerly, we were on the NICISS 11 procedure; even some of the Commands are still on NICISS 11. But B’Odogwu has come to stay at PTML.
PTML was used as a pilot scheme for B’Odogwu. It’s now moving to Tincan and Apapa. What we are telling Customs is that all the teething problems noticed at PTML must be addressed. For instance, you couldn’t connect for examination automatically, you couldn’t attach your documents, even your payment sometimes would not be through with banks used by Customs for collection of duty and other taxes. These teething problems should be sorted out. All banks ought to be integrated on the B’Odogwu clearance procedure. With the same B’Odogwu, you have different channels for clearance. Meanwhile, AEO is just another arm of the clearance process. It’s not a machine, just like you have the one that goes through physical examination, fast-track procedure and the one that involves diplomatic goods, you still have to go through B’Odogwu.
The modernization process of Customs is never static; it is still work- in – progress
The cost has been stated with import and export and, basically, they’re too many.
We are talking about reducing costs and facilitating the process and Shippers Council is talking about ICTN. They should tell us everything that surrounds cargo tracking note because to us, it is another way of adding costs to importation.
Q:
As Customs emphasizes revenue collection, how do you think government should manage the Free Trade Zones?
Ans:
Free Trade Zones are supposed to add to the GDP of the economy. You know it is a special zone for production from where other goods will be exported, not that Customs will not have their revenue once those commodities are to be taken out of the free trade zone. Remember it is specifically meant for those people that have the capacity to produce. The more they produce, the better for us because we can’t continue to be a consuming nation.
So, don’t let us look at it from only the angle of revenue. Let us look at it from the angle of the value being added to the economy.
Q:
What is your view concerning the suspended 4% FOB charges on imports?
Ans:
Customs Act 25 of 2023 contains the issue of 4% FOB charges. However, there is a proviso that for any of those things to be implemented, there must be extensive stakeholder enlightenment and collaboration. Then, how did we come to 4%? Remember we are talking about 4% of FOB in foreign currency – currency of the shipping nation. Sometimes, you might even have more money from that than 4% because even certain consignments that attract zero duty and deserve not to be taxed, yet they pay 4%. Already, Customs has 1% CISS.
We don’t know how 7% surcharge is being distributed. Now another 4% of FOB under the present dispensation that the sector is struggling to survive. You know that without these manufacturers, there is no economy. They add their value to the economy by bringing in their raw materials, yet you add another tax. I don’t think this is the right time to introduce this.
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