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FAILURE TO ADVISE FG EARLIER ON 4% FOB IMPORT DUTY: Group Tackles CGC, Finance Minister.

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Chief Patrick Chukwu.

 

 

By Izuchukwu Ozoemena

 

As the CGC is being hailed for advising the government to suspend the controversial 4% Free-On-Board (FOB) cargo import duty collections, Save Nigeria Importers and Exporters Coalition, a prominent freight forwarders group, says the suspension is an after-thought. Therefore, the group has called on the Comptroller-General of the Nigeria Customs Service (NCS), Bashir Adewale Adeniyi and the Minister of Finance and Coordinating Minister of the Economy, Mr Wale Edun, to resign for failing to advise the Federal Government when it was appropriate to do so.

President of the freight forwarders group, Chief Patrick Osita Chukwu, made the call in Lagos, Wednesday, while condemning a trade regime whose implementation, according to him, is ‘heartless’ and ‘unfeeling,’ going by what the business community and ordinary Nigerians are currently passing through in the hands of government. He condemned a situation government and politicians do not mind using what is left of the blood of Nigerians in their quest to increase Customs revenue target designed to satisfy their personal whims and caprices. As a result of crushing rates and duties that human face, he regretted, major importers are being pushed out of business while others struggling to keep affloat have gone under completely.

As Chief Chukwu noted, what was agreed by stakeholders as per the 2023 Customs Act is a 4% increase in the aggregated derivation accruing to the Nigeria Customs Service from all levies and duties paid on goods and not a hike in the percentage on free- on- board (FOB) levy being misinterpreted as present in the Act. He described the action of those he said changed the original agreement as “wicked”.

Chief Chukwu who lamented the economic hardship Nigerians face now wondered

“Why will anybody want to put additional burden on Nigerians whose economic situation has become worse than ever before?”, he asked.

He was vehement in his call on the government to remove this 4% increase and revert to the original percentage being charged on cargoes through FOB.

“This must be removed completely, not just suspended as announced a couple of days ago. The Finance Minister must resign; the CGC must resign.” He informed that before the so-called suspension, over N500 billion had been collected. These must be returned to those who were forced to pay it.

It is recalled that in a February 11 release, the National Public Relations Officer of the Nigeria Customs Service, Assistant Controller of Customs, Abdullahi Maiwada said, among others:

“The Nigeria Customs Service (NCS) hereby announces the suspension of the implementation of 4% Free-on-Board (FOB) value on imports as provided in Section 18(1)(a) of the Nigeria Customs Service (NCSA) 2023. This is sequel to ongoing consultations with the Honourable Minister of Finance and Coordinating Minister
of the Economy, Mr Olawale Edun and other Stakeholders”.

The statement also detailed a few elements of the 2023 Customs Act which says “The Act further empowers the Service to modernise its operations through various technological innovations. Specifically, Section 28 of the NCS Act 2023 authorises developing and maintaining electronic systems for information exchange between the Service, other Government Agencies, and traders. The Service is already implementing several digital solutions, including the recently deployed B’Odogwu clearance system which stakeholders are benefiting from through faster clearance times and improved transparency. Other innovative solutions authorised by the Act include; Single Window Implementation (Section 33), Risk Management Systems (Section 32), Non-intrusive inspection equipment (Section 59) and Electronic data exchange facilities (Section 33(3))”. These are all geared towards making the NCS an efficient entity”.

Chief Chukwu who, however, described the current CGC as an acclaimed public relations guru, said that now the buck ends on his table, he should have been in a better position to feel the pulse of the people and to know the consequences of implementing such a hike in levy at this moment in time. He should have advised the government earlier against the implementation of the hike; he should have advised a reversal to the old rate.

Chukwu also asked the Minister for Finance, Olawale Edun, to resign for focusing only on internally generated revenue (IGR) and thinking less of the Human Development Index (HDI) thereby leaving most Nigerians pauperized, traumatized and only in existential living.

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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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