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Cargo Clearance: Stakeholder Condemns Attempt to Reintroduce CTN, Opts for Automation

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Dr Segun Musa

 

 

 

By Izuchukwu Ozoemena

 

 

 

The International Cargo Tracking Note (ICTN) is fraudulent, a sure way to further kill the economy.

Widescope Nig Ltd Managing Director, Dr Segun Musa stated this in Lagos during a meeting with the executives of the Maritime Reporters Association of Nigeria (MARAN).

 

Musa, the National Vice President, the National Association of Government Approved Freight Forwarders (NAGAFF), said the ICTN regime is same as the Customs Risk Assessment Report that profiles all cargo coming into Nigeria.

 

He informed that the Reintroducing the ICTN, he argued, would further increase cargo clearance costs, saying that with the intervention of the International Air Transport Association (IATA) on his petition, the ICTN was suspended a airports. He wondered why the ICTN, already jettisoned by the government, is being reintroduced by the government.

 

“ICTN is a fraud. This is a fastest way of killing the economy. We are waiting for them,” Musa vowed.

 

The foremost freight forwarder called the Nigeria Customs Service to implement automation of cargo clearance and delivery, having promised that the B’Odogwu initiative would address cargo clearance and facilitate trade.

 

“I want to believe it is achievable. What we need is the full automation; we are against use of companies but rather individuals with their identity number in cargo clearance. Everything from inspection to delivery should be automated. This is where the integrity of the Nigeria Customs Service will come to play,” said Musa.

 

Whether Customs will allow the automation to work or Customs agents will declare correctly, Musa averred that the world is changing and Nigeria cannot be left behind, saying “Nobody wants a change. The world is migrating away from analog. This is why investors do not want to come to Nigeria. To advance our economy, we must embrace change – automation.”

 

He deplored the homongous revenue collections imposed on the Customs, saying that instead, what matters should be transparency.

 

“I was the lone voice calling for the privatisation of the Customs; anybody can generate revenue. The PIDA did it during the administration of General Sanni Abacha. Customs generating revenue is not special; a consortium can generate revenue while Customs is saddled with a border patrol. We did it before and we can do it again. If the Customs is not transparent enough, I will not hesitate to call on the government to privatise the customs,” Musa remarked.

 

He averred that incessant increase in customs duties and revenue target is an indicator that the national economy is not working and is also a lazy way by the politicians to run the economy. He pointed out that “the Comprehensive Import Supervision Scheme (CISS) is a fraud. Agents should have gone to court to challenge it. It is illegal. The CISS money was meant for inspection agencies to run their operations.t EFCC should have investigated the government over the trillion of Naira of CISS.”

 

Regarding foreigners, Musa said it is not true that they are taking over Nigerian freight forwarding. Freight forwarding, he explained, is an international job and everyone is free to practice it.

“Foreigners have not taken over freight forwarding in Nigeria. People need to understand that we live in a global neighborhood. You must have strength and capacity if you want to participate in freight forwarding, an international job. Government should create a level playing field for all actors. We collect a lot of revenue for the government but we get nothing. Chinese government provide funds and enabling environment for her citizens to thrive everywhere. But it is not the case here in Nigeria,” he regretted.

 

Dr. Musa said the land border was closed because of rice, a decision which he described as

 

He described as irrational Nigeria’s border closure against rice importation when the nation lacks the capacity to produce enough rice to feed her citizens. He maintained that no nation closes her border against goods it lacks capacity to produce enough, expressing fears that the nation may become a dumping ground for other countries as Nigeria does not have capacity and infrastructure to compete competitively in the African Continental Free Trade Agreement (AfCFTA).

 

“We don’t have production capacity to tap AfCFTA. We may likely become the dumping ground. We don’t have manufacturers again who can produce for enough for local consumption and for export under AfCFTA,” said Musa

 

On the National Single Window (NSW), Dr. Musa hinted that his fears about the National Single Window (NSW) had been allayed that NSW would not be handled alone by an agency, calling on the government to set up a committee of trustworthy actors to supervise the Single Window.

On the Marine and Blue Economy Ministry, Musa said it is not a new thing. “It has been with us for long. The Minister loves talkshows and globetrotting. How do we harness the blue economy when we don’t have ships and equipments?,” Musa said.

 

“In 2024, we had a lot of challenges – inconsistent government policies, fluctuations in FOREX that plummeted volumes of cargo traffic and Customs putting pressure on importers with various ideas to meet her revenue target.”

 

“We had a lot of opportunities to change the narratives but we never had Association’s strong enough to protect our interests”.

 

“Hike in the cost of transportation due to incessant increase in diesel cost did not help the situation. The Council for the Regulation of Freight Forwarding in Nigeria (CRFFN) was handicapped by its teething problems and every freight forwarder bore his cross.”

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Maritime Agencies

NPA Is Repositioning Nigerian Ports To Take Full Advantage of AfCFTA, says Dantsoho.

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Dr Abubakar Dantsoho, NPA MD

 

 

 

By Izuchukwu Ozoemena

 

 

Managing Director of the Nigerian Ports Authority (NPA),
Dr Dantsoho has commended the Honourable Minister of Marine and Blue Economy, H.E. Gboyega Oyetola, for standing solidly behind the agency in all steps being taken in this dispensation to rehabilitate and reposition Nigerian ports.

Dantsoho stated this in Lagos, Tuesday, while speaking on the theme: “Improving the Competitiveness of Nigerian Ports in an Era of Regional Integration” at the Nigerian-British Chamber of Commerce (NBCC) Maritime and Logistics event.

He emphasized that the anticipated collapse of trade barriers across Africa will significantly boost intra-African trade.

To ensure that Nigerian ports take full advantage of the anticipated increase in intra-African trade as the full implementation of the African Continental Free Trade Area (AfCFTA) regime takes root, he announced, the Agency is taking steps to enhance the competitive strategy and leadership position of Nigerian ports in the African continent.

Affirming NPA’s vision which is to be the Maritime Logistics Hub for sustainable port services in Africa, he said Nigerian ports must reposition to remain competitive and not lose their gateway traffic status to other ports.

“In the quest for our nation to optimize the benefits acruable from AFCFTA, there is no gainsaying that port plays a pivotal role as a nodal point in international logistics. Given the fact that port cost is a significant component of freight cost which ultimately affects the prices of goods in the market, this speaks to the imperativeness for our ports to be competitive and efficient.”

Therefore, he implored all strategic
players in the port system to join efforts with the NPA to ensure the actualization of this goal.
Speaking further on the quality of infrastructure, he explained that it affects transport costs, trade efficiency, and overall competitiveness.

Therefore, investments in inland terminals, logistic zones and rail networks can expand a port’s influence beyond its traditional hinterland and bring about efficiency that makes the port competitive, he explained.

Similarly, the NPA MD, noted that the macroeconomic environment of a country is intricately linked to its ports’ performance and competitiveness, saying factors such as inflation, exchange rates, and economic stability influence trade flows and investments.

The NPA boss further disclosed that NPA, in collaboration with the International Maritime Organisation (IMO), is working towards the actualisation of this project.

“The Port Community System (PCS) is envisaged to culminate into the National Single Window (NSW) for maximum efficiency and competitiveness,” he said.

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Maritime Agencies

TRADE FACILITATION: Nigeria Customs Pre-Launches ‘B’Odogwu’ In Lagos.

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By Izuchukwu Ozoemena

 

 

The Nigeria Customs Service (NCS) has unveiled her strategic deployment of ‘B’Odogwu,’ a special trade modernization tool whose implementation is aimed at deepening efficient and effective trade processes across the board in line with international best practices.

The event which was attended by many stakeholders took place in Lagos, Monday, for the Apapa and Tincan Island ports.

The flag-off of a successful pilot stage of the ‘B’Odogwu’, it is recalled, took place at the PTML Command earlier in 2024, signaling a new dimension and a major shift in how cargo clearance and trade operations are conducted across the nation’s busiest seaports.

Speaking during the pre-launch and stakeholders’ engagement in Lagos, Bashir Adewale Adeniyi, the Comptroller-General of the Nigeria Customs Service, said the event was only a phase in the deployment process designed to climax to a full-scale launch of a carefully planned process in trade facilitation and other operational areas which must respond to the realities of the moment.

“It is a pre-launch, not a full launch, because we are deploying it at a bigger Command,” the CGC explained.

Emphasizing the importance of timing, the CGC stated that the move was part of the broader modernization agenda which has a collaborative engagement with industry stakeholders as an integral part.

The decision to conceptualize and develop B’Odogwu as a homegrown trade facilitation initiative, he clarified, became necessary in order to address long-standing inefficiencies and frustrations experienced under the previous Nigeria Integrated Customs Information System (NICIS).

“The new company took into account the history of frustrations we have had with the NICIS. So, we decided to start over to develop a new system that would address all the delays and frustrations of the past. So, we came up with B’Odogwu, which is homegrown,” he said.

The Comptroller-General described B’Odogwu as a uniquely Nigerian initiative, with its name embodying the strength and leadership that the system aims to bring to customs operations.

”B’ stands for ‘Border,’ and ‘Odogwu’ signifies strength and leadership in African, particularly Nigerian, parlance,” Adeniyi explained.

He acknowledged that transiting to a new system of this magnitude would come with challenges but reassured stakeholders that the Customs is prepared to tackle any obstacles and challenges.

“A project of this magnitude would not be a walk in the park. We had some challenges during the pilot phase at PTML, we have addressed some and carried over some. We are not going to wait until all the challenges are solved, but with your cooperation, we will resolve all,” he told stakeholders present.

A major breakthrough in the deployment of B’Odogwu is its full integration with commercial banks for the processing of Form ‘M’—a critical requirement for import documentation and trade facilitation in Nigeria.

Adeniyi confirmed that the Central Bank of Nigeria (CBN) has directed all authorized dealer banks to integrate with the platform, ensuring seamless financial transactions for importers and exporters.

“At PTML, we have integrated CBN. The CBN boss, at a meeting with us recently, has instructed all authorized dealer banks to queue into B’Odogwu, and they would all be opening Form M for you,” he announced.

Additionally, he assured stakeholders that communication channels would remain open to provide regular updates on the system’s operation and address concerns as they arise.

In her comments, Kikelomo Adeola, Deputy Comptroller-General in charge of IT and Modernization, restated that the system was reliable and efficient. She assured stakeholders that lessons from the PTML pilot phase are being applied to strengthen B’Odogwu’s functionality.

“We have resolved teething issues following B’Odogwu’s test-run at PTML as the pilot command. We have equally carried out training of agents, terminal operators, among others, on why the effective usage of the platform is crucial,” Adeola said.

 

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Maritime Agencies

Nweke Defends ICTN, says the Implementation Stands To Add Value to the Ports System

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By Izuchukwu Ozoemena

 

Maritime industry stakeholders have been urged to allow the implementation of the International Cargo Tracking Note (ICTN) because it is designed to add value to the Nigerian Ports system.

Dr Eugene Nweke, Director of Research at the Sea Empowerment Research Center, (SEREC), made the appeal in Lagos, Thursday, while addressing a roundtable organized by the Maritime Reporters Association Of Nigeria (MARAN) on the theme “Proposed International Cargo Tracking Note: A Second Look By Critical Stakeholders” held at the International Pres Centre in Apapa.

Since the planned reintroduction of the ICTN was made public, there have been discordant opinions prompting a heated debate among stakeholders who have, so far, refused to take a common position.

Nweke who expressed worry about the divergent views trailing the proposed re-introduction said it is puzzling why some individuals in Nigeria oppose the International Cargo Tracking Note.

“Nigeria’s logistics performance index rating is often low due to its inability to effectively trace, track, and monitor cargo movement. Meanwhile, other countries in the West and Central African subregion have successfully implemented ICTNs and single-window systems”, he explained.

Addressing the fears raised by the stakeholders on how the policy will add to port costs, Nweke who doubles as former National President, National Association of Government Approved Freight Forwarders (NAGAFF) noted that being implementation agency, the Nigerian Shippers’ Council (NSC) knows tha its image is at stake if the policy fails.

“I am aware that some stakeholders have raised concerns about the potential increase in costs associated with ICTN implementation. However, I argue that the long-term benefits of improved security, efficiency, and transparency will outweigh the initial costs.

“Moreover, the ICTN system can be designed to be flexible and adaptable to the needs of different stakeholders, minimizing disruption to existing operations.

“Once again, I enjoin all to allow and support the Nigerian Shippers Council in its efforts and commitment towards adding value to our port system” he stated.

“May I restate that, the NSC understands too well the errors and confusion that trailed the past CTN era, and as such knows that its corporate image and integrity are under the sun. As such, let’s give peace a chance and allow the NCS to add value to our port system” he advised.

While called for further stakeholder engagement to address the issues raised.

“Effective stakeholder engagement is critical to the success of ICTN implementation. The NSC understands the essence of engaging with all relevant stakeholders including shippers, freight forwarders, customs brokers, and other industry players, to ensure that their concerns and needs are addressed.”

“This can be achieved through regular consultations, workshops and training sessions” he added.

Earlier in his welcome address, Godfrey Bivbere, MARAN President, disclosed that as the country moves to reintroduce the ICTN, there must be fresh prospectives to ensure that there are no duplication of efforts and transparency is prioritized.

“As we move to reintroduce the ICTN, it is critical that we approach it with a fresh perspective and an understanding of the lessons learned from the past. We must ensure that there is no duplication of efforts, that transparency is prioritized, and that the concerns of all stakeholders are heard and addressed,” he noted.

He added that it is with this in mind that MARAN decided to take the lead in organizing this roundtable discussion.

“The time has come to resolve the controversies and come to a consensus. MARAN, as the leading maritime beat association in Nigeria, recognizes the importance of fostering dialogue and understanding among all parties involved”.

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