The Shippers Association of Lagos State (SALS) has identified the high cost of doing business in the Nigerian ports as one of the major problems confronting the Nigerian shipper which needed to be frontally tackled by the government.
Speaking at a press briefing yesterday in Lagos, the President of SALS, Rev. Jonathan Nicol regretted that the Nigerian port was the most expensive port in the world adding that the trend was not a good one for the nation.
Nicol pointed out that the government policy had to change so that the Nigerian port could compete favourably with other ports in the maritime community even as he maintained that compulsory port charges slammed on the shoulder of Nigerian shippers should be reversed so as to attract the Nigerian shippers back to Nigerian ports.
According to him,” As you know, a lot of our cargoes are being diverted to the ports of other West African countries. One of the levies we have is the ECOWAS Trade Liberalization Scheme (ETLS) which ought to be the concern of the Federal Government but the Nigerian Shipper is made to pay the Service charge for the scheme.
“7% Port Development Levy was introduced to help improve port development for only five years. According to statistics, the 7% development levy that was collected in 2013 amounts to N730 million. However, since the ports have been concessioned, the development of the port and its provision in the concession agreement becomes the responsibility of the concessionaires yet; the shippers are still meant to pay the 7% levy.
“Apart from these charges, there is a Compulsory Import Supervision Scheme for computing customs duty that the importers are forced to pay. This is the statutory responsibility of the Nigeria Customs Service. In 2013, over N28billion was paid by shippers to the Nigeria Customs Service for performing their statutory responsibility. This is improper and must be stopped”.
He recalled that the total collection for 2013 from all levies amounted to N730, 685, 580, 072.00 excluding the terminal and shipping charges disclosing that shippers believed that a whooping $100 million was paid by the shippers to shipping lines and terminal operators for 2013 and even more in 2014.
Nicol who is also the Managing Director of Harlem International Limited recalled that local transport accounted for over N350 billion even as he alleged that there were other invisible transactions which were about one-third of the total amount of the revenue collected.
Also speaking, the Legal Adviser of SALS, Barr. Osuala Emmanuel Nwagbara pointed out that the Nigerian Shipper had been at the receiving end of it all saying that this had made the Nigerian ports the costliest in the world.
Nwagbara who is also the Managing Partner of Maritime and Commercial Law Partners averred that Federal Government should pay attention to the complains of the Shippers and reverse the negative charges that shippers have had to bear in the port system.
“So, our appeal to the government is to look at the disadvantages shippers have continued to suffer in this country”, he said.
Also speaking at the event, a foremost Master Mariner, Rear Admiral Godwill Ombo who was inducted at the occasion as the Patron and Adviser to the association thanked the association for deeming it fit to induct him as their patron and adviser pledging to give the association the best advice possible so as to help them move forward.
On her part, a representative of the Nigerian Shippers’ Council (NSC), Mrs. Ada Okamdisclosed that for every step that Shippers’ Council take, there had been enormous consultations and that in the same manner, the Shippers’ Council had continued with meetings with the Shippers Association nationwide including town hall meetings with both the providers and consumers of shipping and trade services.
Mrs. Okam who is a Deputy Director Consumer Affairs Department of the NSC revealed that the rationale behind the move was to enable the Council to strike at the exact issue in the port because where two groups; providers and consumers meet at a point, the Shippers’ Council that was the umpire would then be able to strike a balance.
She said,” On the Cargo Tracking Note mentioned here which has been stated will add no cost to the shipper. There are equally prompt attention to shippers’ claims and complains so far and there have been so many adjustments that have been made by the various agencies operating at the port and I think we are heading somewhere even with the present administration because it is obvious we are going to get somewhere because there is no way Nigeria is going to run as a single entity. We have to do businesses with other nations of the world.
Rear Admiral Ombo recalled that this was necessary since if there was no shipper, there would be no maritime industry pointing out that the ship could come and go but if there was nobody to ship cargo, the ship would carry nothing and the industry would have nothing to show for itself.
“So, shippers play a big part in the maritime industry and I am glad and proud to be one of them”, Ombo said.
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