How Terminal Operators In Nigeria Have Become Above The Law
By Dr Arthur Igwilo
Preamble:
Since December 2019,the global community have faced an existential challenge,the ravaging novel disease, Coronavirus.
The pandemic has led to many deaths, economic losses, environmental degradation as activities in the world is partially shut down.
As a result of this many countries has embarked on several measures to stem the tide of the damaging and debilitating effects of this deleterious and lethal pandemic.
So many waivers among others were granted by various Governments including Nigeria to business communities and peoples.
In Nigeria,the Federal Government through the Managing Director of Nigeria Ports Authority, Hajia Bala Usman and the Executive Secretary/CEO, NIgerian Shippers’Council, in their letters to Terminal Operators and Shipping Companies with references:HQ/MRS/GM/OPL1/VOLi
This showed the reflection of the mood of this period by a responsible government.
Compliance Level By Terminal Operators
The Terminal Operators and Shipping Companies in Nigeria under the aegies of Shipping and Terminal Operators of NIgeria (STOAN) refused to comply with these directives by the Federal Government,thereby flouting the directives of the federal government agencies, forcing the hapless Shippers’ and their Representatives to pay their Detention/Demurrage/Storage and of course regular charges at 100 per cent.
Even Shippers’ that managed to pay up to enable them pull their Containers out of the ports to prevent further accumulation of huge sums with the hope of getting their monies refunded are finding it extremely difficult to get their refunds.
At different occasions,the restive organized port Operators had planned protests,but the leaders in the sector had always advised against such moves considering the prevailing situation.
Things have continued to get worse, while Terminal and Shipping Companies are smiling to the banks to the detriment of the Shippers and their Agents((Freight Forwarders)and by extension Nigerians on daily basis in total disregard to the subsisting directives on COVID-19 Pandemic and it’s palliative to port users in line with global practises.
Bonded Terminal (ICDs)Angle
To compound the situation,the Bonded Terminals (names withheld)had gone ahead to increase their terminal charges by over 500 per cent with consulting anybody.
How they arrived at this rate has remained unknown to shippers,and other stakeholders at the ports.
Such increment under the current ravaging pandemic would only damage the economy further.
Many businesses are still experiencing total/partial lockdown, even financial institutions and many corporate organization are still operating in their half capacity.
Some bonded Terminals in connivance with shipping Companies are frustrating businesses and the entire Nigerians by disregarding the directives of the Federal Government.
Having investigated the probable causes of this astronomical increment of which the investigations are still on going, it has been discovered that it a case of double taxation.
One of the major Terminal Operators (names withheld) where 60 per cent of the imports are discharged must collect their full Terminal charges and other ancillary charges before releasing containers to any bonded Terminals that approached them and the payments are made up front.
The Bonded Terminals in turn would add their charges on the same containers on getting to their Terminals. And these must be paid before being released by them.
Remember,these payments are aside the Customs duties and other charges payable to SON, NAFDAC, NESREA among others on the same imports.
For instance a 1x40Ft container discharged in the major Terminal, pays total terminal charge of N184,407 as against N704,59 paid at bonded terminals.
And for1x20Ft Container(Import) at the major Terminal,the Importers pay N124, 000. And on getting to the bonded Terminals the same size of container will attract N500,000 as charges. One can see how ridiculously high this charges are at the Bonded Terminals under COVID-19 Pandemic.
The implications of this disparity are:
1.Importers who unfortunately find their Containers in the ICDs henceforth must pay through their nose.
2. If such Importers manage to pay up at Bonded Terminals and another importer of similar items happened to have his goods cleared at the major Terminal where the charges are far less, the that cleared at the bonded terminal has automatically been put at a disadvantaged position and at a huge loss.
3.Another implication is more Containers are to be abandoned at the ports especially ICDs for a long time.
4.The high cost of doing business in the ports will encourage cargo diversions and promote smuggling,which lead to revenue losses and security challenges.
5. The survivalist tendencies of the bonded Terminals have become antithetical to the on going campaign by Presidential Enabling Business Environment Council (PEBEC) on the Ease of doing business whose cardinal mandates include but not limited to dismantling any known obstacles to ease the way businesses are carried out in Nigeria.
In all,with the above verifiable figures and the attendant damaging consequences to our trade and national psyche where people/Companies flagrantly disobey directives thereby making Nigeria look like a “banana republic, even under the excruciating conditions,we better watch it.
The ports system in Nigeria have been put in spotlight where it looks as if there is total system malfunctioning.
We must work harmoniously and assiduously to prevent total system collapse that will obviously compound already bad situation. We must avoid the avoidable economic cataclysm even now the prizes of crude oil have been in doldrums.
Efforts must be made by Federal Government and her Agencies to checkmate the excesses,crass gluttony of our investors both local and foreign especially at the ports. Maritime Industry which ought to be the cash cow must be protected and well-guided as done in other advanced coastal Nations.
All manner of exploitation and high-handedness must by discouraged in its entirety.
* Dr Arthur Igwilo is a Freight Forwarder and Maritime Consultant
