Written by Shehu Abubakar.
Stakeholders in the maritime industry alleged at a conference in Lagos
that billions of naira accruing from arbitrary shipping charges due to
absence of a commercial regulator. They also alleged that the money end
in the pockets of concessionaires handling most of the concessioned
terminals. The experts and some human right lawyers that attended the
Lagos conference said top government officials benefitting from the
arbitrary charges at the port that is allegedly diverted to private
accounts are responsible for the delay in the passage of relevant laws
meant to establish among others, the National Transport Commission (NTC)
expected to serve as the commercial regulator of port terminals and
shipping business in the country.
The maritime stakeholders’ conference
tagged, a free legal clinic on arbitrary shipping charges: Rules, Rights
and Remedies was conducted by Akabogu and Associates, in collaboration
with Shippers Council on Tuesday, August 14 provided a platform where
experts interacted under the chairmanship of foremost maritime expert
Otunba Kunle Folarin.
Some of the issues that dominated
discussion at the conference were questions bordering on what really
constitute the numerous charges slammed on importers and shippers of
goods to Nigeria-like terminal handling charges (THC), containers
demurrages who should be charging and how much is the international
standard of it?
Other issues that dominated discussion
at the conference were why VAT should be paid on CIF when it is also
charged on customs duty? Why VAT on container deposit? The absolute need
for a commercial or economic regulator in the industry cannot be
overemphasized. A critical analysis of the roles of NPA and Nigeria
Shippers Council (NSC) was undertaken by participants where the single
window or one-stop shop clearing house for all payments is desirable.
The jam-packed conference hall of
Nigeria Shippers council, Lagos, venue of the conference had in
attendance very many experts in the industry who proffered solutions to
the multifarious problem plaguing the maritime industry with a general
consensus that the present administration has the administrative will to
address the problems except for the fact that top government officials
and politicians benefitting from the present shoddy arrangement may not
want the presidency to understand the rote in the system and effect
necessary corrections.
Barrister Emeka Akabogu said statistical
data from Nigerian Ports Authority (NPA) indicate that the issue of
arbitrary shipping charges is a major source of overcharging people
doing business at the nation’s ports, denying government its due share
of revenue accruing from the arbitrary charges and diverting same to
private accounts.
“In view of the monumental corruption
going on in the maritime sector, going to court right now is absolutely
necessary, while the persuasion of the authorities to see reasons why
the empowering of shippers council or setting up of a commercial
regulator, is being package, as a medium to a long term solution to the
arbitrary, some say, criminal charges by the shipping companies and
terminal operators.
“From the statistics obtained from NPA,
imports in a year show 817,216 TEUs plus 231,423vehicles are recorded.
Therefore, damage, delay or loss incidents affecting at least 40 percent
of these numbers. Also, assumption of average value of one Total
Equivalent Unit (TEU) equals $75,000.00 and that of one vehicle is
$12,000.
“When these amounts are used to multiply
the quantity of imports in a year, it means thus: 817,246 times $75,000
times 0.4 equals to $24.5 billion. Container deposit fees equal 817,246
times N80, 000 and that is the minimum considered, and that equals
N65.4 billion. Now 30 percent, which is N19.6 billion is retained for
various reasons, while a balance of N45.8 billion is expected to be
paid, after a minimum of 2 months delay with 10 percent interest
accrual,” he said.
Stakeholders and professionals in the
maritime sector at the conference in a frantic effort to find solution
to the seemingly interactive problem came up with various suggestions.
Chief Martins Egbafe said the best solution is the total shutting down
the ports, adding, “Because, after several years of trying to draw the
attention of the Federal Government to these arbitrary shipping charges,
shutting down the Ports appears to be the only language that will be
understood by the authorities,” he said.
But the National President of
Association of Nigerian Licensed Customs Agents (ANLCA), Prince
Olayiwola Shittu thought otherwise, saying, “In spite of the fact that
highly placed persons, at the Federal Ministry of Transport, are
colluding with some industry operators to scuttle the actualization of a
Commercial Regulator for the maritime industry, I am of the firm belief
that if freight forwarders synergize, and collaborate to institute a
class action against the shipping companies and terminal operators, a
big relief will be achieved, which will be sustainable and long
lasting.”
On the issue of the long overdue
economic regulator for the maritime industry, Nigeria Shippers council
informed participants at the conference that a benchmark of shipping
charges has been submitted to the office of the Minister of Finance for
consideration.
A participant, Mr Olaitan Jamil said, “I
am of the opinion that stakeholders should form a collaborative action
alliance to serve as a lobby group in the industry to take-up some of
these challenges and ensure a decisive action is achieved. I have also
noted that it is the considered opinion of most participants that just
like the ministers of finance and transport stormed Lagos some months
back to seek solutions from stakeholders, and immediately directed the
implementation of such decisions with official pronouncements and
circulars, those ministers should once more be invited to hear out the
stakeholders on this issue of arbitrary shipping and terminal charges,
take decisions and direct immediate implementation.
“This way, there will be no room for
backdoor negotiations and thereby truncating of the collective will or
decision of the people. On the single window proposal, every participant
feels it is long overdue. Everything must be done to support its
actualization,” he said.
Effort to reach the Minister of
Transport, Senator Idris Umar could not be successful as officials of
the ministry insist that a formal letter to interview him must be
initiated. Months after a letter requesting for interview with the
minister could neither be acknowledged nor the interview granted.
Similarly, an online enquiry on maritime
and transport related matters sent to the Assistant Director Press and
publicity of the ministry, Mr. Abiodun Oladunjoye could not be replied
to several months after delivery.
However, a reliable source at the office
of the transport minister told this reporter that a meeting of Legal
officers and relevant officials from some agencies of the ministry is
ongoing with a view to considering a way forward. The source added,
“They are only wasting time. The fact of the matter is there is no way
the maritime industry can move ahead unless and until all the pending
bills now before the National Assembly are passed to law.
“To mobilize the legislators to work on
these bills and pass them into law, you need money. The ministry does
not have such money but the relevant agencies, NPA and NIMASA in
particular have the needed money but they will never release it because
passing a bill establishing the NTC as a commercial regulator means
depriving the NPA of some of its powers. In the absence of the NTC, the
NPA is now doing the job of NPC. Nobody will give you money to strip him
of his powers.
“Again, the posting of non-professionals
or people that are not conversant with transportation is another
stumbling block. When you transfer a Director that worked all through
his life in Sports, Agric and Health ministries or areas not related to
transport, you will not expect him to know what to do in the transport
sector. The transport sector requires professionals and people that are
conversant with the industry,” the source said.
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