The Nigerian Shippers’
Council, NSC, and other stakeholders have identified a multiplicity of
charges and cumbersome procedures as factors discouraging exports from Nigeria. They
stated this at a one-day stakeholders’ enlightenment meeting with the theme,
“Proper Packaging System: An Essential Tool For Agro Export” organized by the
NSC in Makurdi.
The meeting
which was hosted by the NSC Executive Secretary, Mr. Pius Akutah in a
communique recommended proper packaging, and labelling of non-oil products
to international standards to enhance the fortunes of the export sector and
ensure Nigeria’s economic growth.
The meeting
which had in attendance exporters, personnel from the military,
paramilitary, traditional institutions, business owners, and the media among
others pointed out that “cumbersome procedures and multiplicity of charges and
agencies involved in the export logistics chain give rise to prohibitive cost
which discourage exporters and make Nigerian exportable products uncompetitive
at the international market.”
According
to them “Nigeria’s mono-sector economy is being seriously threatened and it has
therefore become very pertinent to diversify the economy through export of
agricultural farm produce resources available in Benue State.”
They noted
“the abundance of exportable perishable agricultural products in Benue State
and indeed all over Nigeria that are in high demand at the international market
but are not being fully harnessed for export to the detriment of the nation’s
economic growth and development and its impacts on the GDP.”
They urged
that “the NSC, Nigerian Export Promotion Council, Central Bank Of Nigeria,
NEXIM, Organized Private Sector and other critical stakeholders should sustain
the advocacy for value addition on an agricultural product meant for export to
ensure accessibility of export financing and break the jinx of constant
rejection of Nigerian export commodity in the international market to make them
competitive at the global market.”
The
stakeholders also stressed among others the need for the establishment of a
Benue warehouse where agro produce such as orange, sesame seeds, soya beans and
mangoes originating from the state could be stored for export even as they
noted that farmers’ insecurity occasioned by banditry and herders-farmers
clashes were causing huge losses to farmers of cash crops in local and foreign
revenue.
at the
international market but are not being fully harnessed for export to the
detriment of the nation’s economic growth and development and its impacts on
the GDP.”
They urged
that “the NSC, Nigerian Export Promotion Council, Central Bank Of Nigeria, NEXIM,
Organized Private Sector and other critical stakeholders should sustain the
advocacy for value addition on an agricultural product meant for export to
ensure accessibility of export financing and break the jinx of constant
rejection of Nigerian export commodity in the international market to make them
competitive at the global market.”
The
stakeholders also stressed among others the need for the establishment of a
Benue warehouse where agro produce such as orange, sesame seeds, soya beans and
mangoes originating from the state could be stored for export even as they
noted that farmers’ insecurity occasioned by banditry and herders-farmers
clashes were causing huge losses to farmers of cash crops in local and foreign
revenue.
“Also the
Makurdi River Port should be developed by the government and private sector for
coastal shipping and inland waterways transportation to enhance movement of
cargoes to the hinterland all year round.
“The
government should create business enabling environment to encourage private
sector participation in the development and investment of transport support
infrastructure facilities of the economy such as Inland Depot Project, IDP,
Truck Transit Park, TTP, also known as Truck Transit park, TTP, in Benue State.
“The
Government at all levels should promote the processing of Raw materials and
value addition to increase their value for export and create job opportunities
for our unemployed youths.
“Agriculture
Credit facilities and financial, institutions such as BOA, BOI, NIRSAL, Commercial
and microfinance Banks should be strengthened and simplified to make is easier
for exporters to navigate the too cumbersome access to credit facilities”, the
communique further read.
The
Executive Secretary of the NSC, Mr. Pius Akutah, represented by the
Director, Consumer Affairs Department of the Council, Mr. Glory Onyejado
charged participants to bear their minds on issues hindering the export of
goods from the state and country and state what should be done to address the
situation.
The
Nigerian Shippers’ Council held tripartite meetings at the Kaduna Port Office
where all relevant parties; USBAB MULTI CHOICE LTD
( Complainant) , Kaduna Inland Dry Port/ ICNL ( Forwarder) ,Federal Produce
Inspection service ( FPIS), Anglia International services Ltd ( Pre- shipment
Agent) and Shippers’ Council’s Complaints Team from the head office were in
attendance to amicably resolved the lingering complaint.
The
chairman of the meeting and Deputy Director, Kaduna Port Office, Mr. Paul
Garnva welcomed all parties to the meeting and informed that Kaduna Port Office
regulates the Dry Port and protects shippers in terms of cost, effective and
efficient service delivery.
He noted
that since the commencement of operations, over sixteen (16,000 TEU’s) import
containers have been cleared, while over fifty ( 50 TEU’s) export containers
were handled. He added that the essence of the meeting was to dialogue with a
view to arriving at fair and amicable resolution.
The head of
complaints Unit, Mr. Daniel Orume, a Deputy Director, accompanied by an
Assistant Director, (complaints), Mr. Danjuma Buba and Mr. Hassan Aminu ( a
principal Operations Officer), however stated that this intervention is
crucial, being the first to be held at Kaduna Port Office.
He said in
line with NSC ‘s Port Economic Regulation Order, 2015, the complaints Unit is
saddled with the responsibility to find solutions to issues relating to
disputes between providers and consumers of shipping services in the industry.
He stressed that, for the council to carry our investigation and reach
necessary resolutions, it relied on documents presented by all parties.
He pointed
put that from the Nigeria Drugs Law Enforcement Agency ( NDLEA), the containers
were put on hold for almost one month.
On ICNL’s
counter submission that they were informed late by MAERSK Nigeria, the council
sought empirical evidence to authenticate when both MAERSK and NDLEA informed
the Terminal as well as when they engaged NDLEA for the release of the
containers.
The council
further sought clarification from FPIS, statutorily responsible for issuance of
certificate of Quality, Fumigation, Good Packaging Materials and Weight, and
explanation on which of the agencies in the export clearance chain is in charge
of moisture owing to the fact that the space for moisture content of commodity
on the certificate was blank.
The Council
also raised issues such as; delay in trying to correct the Bill of Lading of
the damaged cargo; sought to know from the pre-shipment Agent, the type of
container most suitable for export of agricultural produce; and who is to
advise on Packaging of all export cargoes?
Responding,
the representatives of Anglia International Services Ltd, the pre- shipment
Agent,Messrs. Bodam Sammy and Hyacinth Louis C. informed the meeting ‘ ‘they
received the beans and inspected in line with their mandate.
They listed
some of their responsibilities to include; ensuring that documentation and
goods declared by the exporter has no disparity, ensure that Nigeria Export
Supervision Scheme ( NESS) fee is in conformity with the goods declared, proper
documentation and submission of report of inspection to their head office for
issuance of Clean Certificate of Inspection ( CCI) .
Packaging
or the choice of the type of bag is based on the specification of the buyer,
the exporter must ensure strict adherence to that. Where there is discrepancy
CCI would not be issued and where there is observation by any of the agencies
in the export clearance chain,we are supposed to be informed. That, in this
case, no agency informed us of any observation. ”
The
pre-shipment agent further explained that in this instance, everything was
properly done as thorough check was carried out on the bags and the type of
beans. In line with the physical examination, ‘there was nothing wrong with the
beans as at the time of inspection “. The Agency stated that they carried out
their inspection and issued CCI when all the agencies have completed their
processes and their role terminates at that point.
Responding,
FPIS represented at the meeting by Mr. Usman Suleiman, stated ” he inspected
the beans and found it to be well dried without stone, and certified it to be
of exportable quality. ”
He said
that he fumigated the two (2) containers and further pointed out that the only
thing he observed was that during stuffing, ‘the containers were not properly
dressed. ‘
He raised
an observation, but the response of ICNL was” the containers would not stay
long ”
He added
that if the dressing was to be done, it would not have been possible to move
the containers that day to Lagos as desired by the Exporters. While on the type
of container most suitable for export of Agricultural produce,the
representative said any type of container could be used provided it is “clean
and free of insects.”
ICNL (
Terminal operator/ forwarder) Kaduna represented by Messrs. Rotimi O. and
Salami O. Rasaq informed the meeting ” the damage to the beans was unfortunate
“. They added that they received the cargo at Kaduna Inland Dry Port and
transported it to Apapa Port, Lagos within 15 days.
They also
stated that the exporter commended processing of documents such as For. NXP,
NESS, etc. After the beans had arrived at KIDP
ICNL also
explained that during stuffing, the FPIS officials drew their attention to the
”need to dress the containers with dry papers and bags, but the representative
of the Exporter (Ahmed) insisted the stuffing should continue.” They added that
the trucks conveying the goods left Kaduna for Lagos, but on arrival, it could
not access the port immediately due to MAERSK policy which only allows truck
access in to the port on Mondays, Wednesdays and Fridays, which hindered timely
gate- in to the terminal “.
They
further mentioned how NDLEA ”put on hold” to a great extent, contributed to the
delay because neither MAERSK nor NDLEA informed them on time. This according to
them accounts for the reason why they missed two vessels that the cargo
previously scheduled.
After
careful assessment of all the documents submitted during the previous
tripartite meetings, the legal advice received from the Council’s Directorate
of Legal services as well as review of the role both parties played in the
transaction, the Council resolved that Liability sharing formula should be 70%
for Kaduna Inland Dry Port ( ICNL ) being the appointed terminal operator and
forwarder with the responsibility to ensure that the cargo is transported and
delivered in safe and good condition, while 30% is for the Exporter (USBAB
MULTI CHOICE LTD) for failure to heed experts advice on how to properly
preserve the beans and prevent it from damage.
The parties
were however grateful for the council intervention, but ICNL requested the
Council to review the liability sharing formula.
