...Questions policy alignment after minister’s cost reduction pledge
The Africa Association of Professional Freight Forwarders & Logistics of Nigeria (APFFLON) has expressed concern over the recent spate of tariff increases imposed on clearing agents and importers at Nigerian ports, citing the already challenging economic climate.
President of APFFLON, Frank Ogunojemite, spoke to journalists at the association’s secretariat in Lagos on Wednesday, while reacting to the Nigerian Ports Authority’s (NPA) announcement of a 15 percent tariff hike and the Nigeria Customs Service’s introduction of 4% Free-on-Board (FOB) levy on imports.
Although the NCS has announced the suspension of the FOB levy, Ogunojemite argued that these increases, if implemented, will exacerbate the hardship faced by Nigerians and discourage investment, contradicting the government’s goal of promoting trade facilitation.
He highlighted the discrepancy between the new charges and recent pronouncements by the Minister of Marine & Blue Economy, Adegboyega Oyetola, who pledged to reduce the cost of doing business at Nigerian ports by at least 25 percent through the implementation of the National Single Window (NSW).
“There is a discrepancy between what the minister is talking about cost reduction and what NPA and Customs is doing with the recent increase in their charges,” Ogunogemite stated.
While calling for clarification on the conflicting policies, Ogunojemite emphasized the need for a stable and predictable tariff environment to encourage importers and exporters.
The APFFLON President urged the Customs to reconsider and reduce some of its import charges, including the 1% Comprehensive Import Supervision Scheme (CISS), given the added burden that will come with the newly introduced 4% FOB charge when implemented.
He also appealed to the NPA to halt its planned 15% increase, citing the prevailing economic hardship and the difficulties faced by Nigerians.
Ogunojemite criticized the NPA for a lack of stakeholder engagement, alleging that the agency did not consult with industry players before imposing these new charges.
“Increment in charges of any kind at this period is ill-timed and ill-advised considering that Nigerians are grappling with so many challenges
including the removal of fuel subsidy, floating exchange rate, inflation, high cost of living, 50% increment by telecom industry, increase in electricity tariff, the new tax bill among others. It’s the same people that are being targeted with all these increment even though their earnings remain the same.
“So, we appeal to the Nigerian Ports Authority to factor in all these into the picture and see the need to halt its planned increment in charges to grow the economy and alleviate the suffering of the masses who are at the receiving end, ” he said.
Ogunojemite further criticized the high cost of procuring the Eto call-up system for trucks, managed by the Truck Transit Parks Limited (TTP), which he said has skyrocketed to unaffordable levels and now out of reach of many truck drivers, thus hindering ease of doing business.
He said, “We can’t be talking about a robust economy with policies and actions which seek to impoverish Nigerians. Such development cannot take us anywhere rather it would drive away investors and kill businesses in this country. Eto is now causing an impediment to the Ease of Doing Business at the port and you can’t be talking about Ease of Doing Business when the cost of getting Eto is now up to two hundred thousand naira (N200,000). This development can only lead to congestion at the port.”
Ogunojemite also raised doubt about the feasibility of the proposed 24-hour cargo clearance at Nigerian ports, citing insecurity as a major impediment.
In s seperate development, the AFPPLON President has warned chapter executives about sanctions should they fail to leave up to expectation and remit their monthly dues.
He stressed the importance of adherence to the association’s rules and regulations if any member chooses to remain in the association.
He also announced that a groundbreaking ceremony for the association’s new site granted by the Federal Airport Authority of Nigeria (FAAN) would take place soon.
