ANLCA List out Factors Militating Against Seamless Port Operations In Nigeria

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Seamless port operation in Nigeria is quite imperative, as maritime is the second largest revenue generating sector for the Federal Government, after oil.

 

Nwabunike Anthony Iju, the National President, ANLCA in his Paper Presentation at Association of Maritime Journalists of Nigeria (AMJON)’s Annual Conference/Awards held at Sheraton Hotels Ikeja Lagos State, 19th November, 2021 said There are a lot of factors militating against the system in Nigeria.

 

In his paper titled The Role of Customs Brokers in Seamless Port Operations in Nigeria, Nwabunike said A Customs Broker is a professional who has in-depth knowledge of tax policies, shipping regulations and harmonised tariff code system; and he is licensed to carry out inbound and outbound cargo clearance. For instance, in Nigeria a Customs Broker is granted operating license by Nigeria Customs Service (NCS), he added.

 

The National President, ANLCA, who was ably represented at the event by Dr Collin Forinto noted that the seamless port operation in Nigeria is quite imperative, as maritime is the second largest revenue generating sector for the Federal Government, after oil. According to him, billions of naira realised daily for government by Customs come mainly from import/excise duties on consignments handled by Customs Brokers.

 

 

Therefore, he stressed that a Customs Broker plays important roles in cargo clearance, which paves the way for revenue collection for optimum economic growth. In that capacity, he needs the skills and expertise in classification of goods, valuation, admissibility requirement, and rates of duty on monetary taxes needed by government as import duties for goods coming into the country, he added.

 

“Factors Militating Against Seamless Port Operations:

Advanced countries like U S, China, France, UK, Denmark, Sweden, Singapore etc, practise seamless port operations; and with large capacity utilisation, but that is not the case in Nigeria. For instance, the port in UK facilitates about 95 percent of the country’s trade. This high level of capacity utilisation is not obtainable in Nigeria at present.

 

“Apart from low capacity, another factor working against seamless port operations in Nigeria is the human interface causing unnecessary bottlenecks. Port operations in other countries are digitalised, such that the human elements are totally eliminated. In such countries, Customs Brokers carry out their transactions from the comfort of their offices because the system is highly automated and movement of people is restricted within the port ambience.

 

“There are a lot of factors militating against the system in Nigeria.

These include;

* Lack of infrastructure like scanners to speed up cargo examination by Customs and other Government Agencies.

* Numerous agencies of governments at the seaport carrying out similar functions.

* Perennial traffic gridlock hindering easy access to the seaport.

* Poor road network within the port vicinity.

* Lack of functional railway system for immediate evacuation of containers out of the port

* Activities of miscreants within the port corridors.

* Corruption and sabotage in the system.

 

“Though the Nigerian government is putting measures in place to rejuvenate the port industry for seamless operations like what obtains in other climes

 

In conclusion he said Customs Brokers operating in non-oil sector play important roles not only in seamless port operations, but in enormous contributions to economic growth and development.

 

For instance, ANLCA National President, pointed out that the data obtained from Nigerian Bureau of Statistics (NBS), shows that Nigeria’s GDP grew by 5.01% in the second quarter of 2021 economic year; and the non-oil sector where the Customs Brokers operate made significant contributions with a growth rate of 6.74%. Government should recognise the importance and good roles the Customs Brokers are playing in Nigerian Economy.

 

Also, the Customs Brokers through payment of import duties contributed significantly to the whopping sums generated by NCS cited available NBS statistics revealed that Customs generated N1.5 trillion in 2020 fiscal year and N1.3 trillion in 2019.

 


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