1 week ago
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By Steve Agbota
The Managing Director of Sula Marine Global Limited, Sulaiman Ayokunle, has shed light on the persistent challenges preventing the effective implementation of 24-hour port operations in Nigeria’s maritime sector. Despite its potential to enhance trade efficiency, decongest ports and drive economic growth, round-the-clock port activities remain largely unachieved due to a range of systemic and operational bottlenecks.
Ayokunle, an industry expert with deep insights into maritime logistics, emphasised that several factors, ranging from bureaucratic inefficiencies, security concerns, inadequate infrastructure and human-related constraints, have continued to hinder seamless 24-hour operations at the ports. According to him, addressing these critical issues requires stronger policy implementation, enhanced automation and improved stakeholder collaboration to unlock the full potential of Nigeria’s maritime industry.
His views, expressed in a recent interview with Daily Sun, add to ongoing conversations within the sector, as stakeholders push for more efficient port management, enhanced Customs procedures and better inter-agency coordination to position Nigeria’s ports as globally competitive trade hubs.
He also spoke on the recent 4 per cent Customs charge, drop in importation and other issues as related to the nation’s maritime industry.
Current state of the maritime sector
The maritime industry is a very large sector. You can imagine the gateway to the nation’s economy—how large that industry will be. I will be more specific about the import and, by extension, export of consignments.
Remember, we practitioners, the customs brokers, are like a connecting road that relates with the Nigeria Customs Service (NCS), DSS, shipping companies, terminal operators, and other security agencies of the federal government of Nigeria.
That is why it is easier for us to know where the shoe pinches. There have been a lot of reformation agendas, from customs modernization to that of the Nigerian Ports Authority (NPA) and the Shippers’ Council. The Shippers’ Council is the port economic regulator. But regarding the Nigeria Customs Service, the modern agency in the port, it will take much of our attention today. And why do I emphasise that? Customs determines the survival of even the manufacturers through their importation of raw materials.
Remember, recently, they introduced the B’odogwu Clearance Procedure. B’odogwu is a clearing machine, just like NCIS II. You know, we have moved from ASYCUDA to ASYCUDA++, then NCIS I and NCIS II.
NCIS II is managed and run by Web Fontaine, but now, Customs wants to take over the activities of their operations through the B’odogwu operating machine. The pilot scheme is currently in place, with Grimaldi as the command of the pilot scheme, which I am very familiar with.
However, we are still experiencing teething problems. Sometimes, it is difficult to attach your PAAR to your document. Other times, accessing your examiner becomes a challenge. The examiner is automatically assigned for any red channel documentation that requires a physical examination.
Immediately after duty payment, your examiner is supposed to pop up from the system automatically. But we are still facing challenges. Additionally, we have a problem with the limited number of banks integrated into the B’odogwu platform.
Not all banks are included in customs duty collections. Due to these and other challenges, we have advised that before B’odogwu is introduced to Tin Can, considering its high volume, and Apapa, it must first be perfected at Grimaldi (PTML).
Beyond that, management must also involve stakeholders in other critical decisions. By and large, the reform and modernisation efforts are well-intentioned. We will embrace them, provided we are carried along because we are the practitioners.
Stakeholders clamour for 90-day sensitisation before the implementation of the 4 per cent Customs operations charge
The earlier the Nigeria Customs Service listens to stakeholders and resolves this matter, the better. However, I want to correct a misconception. This 4 per cent charge is not an increment from CISS. CISS stands on its own. This 4 per cent charge is part of what is enacted in the Customs Act 25 of 2023.
If you look at Section 18, Subsections A to D, it details the financing of customs operations. The act states that customs operations will be financed by 4 per cent of the FOB value.
Here’s where the problem lies: The 1 per cent CISS already goes to Nigeria Customs Service, and now, another 4 per cent is also allocated to them.
Mind you, based on various calculations, customs would now be taking 10 per cent duty from consignment payments to the federal government, plus an additional 4 per cent for themselves. The Act explicitly states that this money goes directly to Nigeria Customs Service and will be managed by them.
My brother, that is a lot of money. And remember, the economy is struggling.
The real economic operators keeping this economy afloat are manufacturers. These manufacturers import raw materials through the port. They are already struggling with floating exchange rates and rising dollar costs.
Now, introducing this 4 per cent charge at this critical moment is like deliberately killing the goose that lays the golden egg.
Although we don’t know how this charge found its way into the Act, it has already been assented to—so it is now law.
Is this the best time to implement it?
In a single month, we will be talking about billions of naira going to Nigeria Customs Service from this 4 per cent charge.
Within just two days, I have seen declarations from colleagues where they had to pay N20 million, N10 million, and N15 million, just yesterday and today.
The same thing is happening at Apapa and in every other command where declarations are generated for assessment payments.
This will be serious money going to Nigeria Customs Service. Who are the people making these payments? The importers, through their agents.
We, the declarants, have long advocated for a fair share of the revenue being generated and collected through our efforts. But nobody is listening to us.
Even 0.001 per cent is not coming to us. Yet, we are the declarants.
Look at the declaration form, and you’ll see our signatures as declarants, meaning we are held responsible along with the importers.
But despite this responsibility, nothing comes to us.
Now, 1 per cent from CISS and 4 per cent from FOB are both going to Nigeria Customs Service.
We urge the CGC to use human discretion and reconsider this charge, because this is not the best time to introduce it. It will only increase the burden on importers.
Your Association’s efforts to secure a fair percentage of this revenue
You see, sometimes it feels like someone is working behind the scenes to create a divide-and-rule strategy.
Otherwise, it shouldn’t be so difficult for all associations to unite and speak with one voice.
We are the ones resolving most of the industry’s challenges, and we are the connecting rod.
In fact, we are often the risk bearers in certain situations.
Our licenses are at stake whenever importation issues arise.
Previously, we were held accountable for up to seven years, but under the new Act, it has been extended to ten years.
That means any declaration made by a licensed customs agent remains their responsibility for a decade.
Yet, we receive the least compensation.
Our agency fees are typically N20,000 to N30,000 per 20-foot container or N50,000 per 40-foot container.
However, the percentage we are advocating for is reasonable and necessary.
It will encourage us, make us feel included, and allow us to invest in training for ourselves and our members.
Even the Shippers’ Council should be at the forefront of this demand, along with the Council for the Regulation of Freight Forwarders (CRFFN).
But the CRFFN has been too passive in confronting the mafias in the industry.
We hope that, very soon, the government will listen and ensure we receive adequate compensation—because we are the ones generating this revenue through our declarations.
Why is Nigeria still struggling to implement 24-hour port operations?
My brother, the simple answer is human factors.
There is nothing impossible about 24-hour clearance time.
At the recently concluded Single Window Project Seminar in Ikeja, it took us three days to bring all stakeholders together to discuss import and export challenges.
Ministers were present, including those from Finance, Industry, the MD of NPA, Shippers’ Council, and the Executive Chairman of FIRS.
We all discussed one key issue: reducing clearance time to facilitate trade.
The system has been yearning for this for a long time, yet human factors continue to obstruct it.
If the Single Window Project is implemented effectively, 24-hour clearance time will no longer be an issue.
But does the government have the political will to enforce it?
We will wait and see.
In Grimaldi, 24 hours is working in PTML Grimaldi command. Except there are other underlying factors that make it not progress.
In other parts, there are difficulties. Single window is like a single pool where if you have any reason to pick any document at government agencies, you go into that pool.
Pick your information without creating artificial delay on this clearance chain to facilitate trade. It’s purely a human factor.
Because of some of these rotation numbers from shipping companies, you get it before the arrival of vessels or a few shipping companies. While some of them are still struggling to provide rotation numbers before the arrival of vessels. Which of course is supposed to take less than three days to the arrival of vessels. So that you can do your assessment, data capturing and payments. As the vessel is arriving, for the one going for physical examination, you go for examination, fast-track, you go for a delivery, and documentary check.
But I believe this single window will expose some of those deliberate artificial bottlenecks that have been militating against us seeing 24 hours clearance time working. Remember there was a time today they introduced time release study.
We only heard of time release study launching. If something is a study, of course they are supposed to furnish us with the outcome of their study. But those are the things affecting the bureaucracy that we are talking about in government establishment agencies. If something is a study, you should let us know the outcome. But six months down the lane, we are yet to see the outcome of that time release study. So that we know where issues are.
So many nomenclatures. But we hope with this single window project, they have the temerity, the determination and the political will to make it a success. So 24 hours clearance time will be a thing of the past if single window can work as designed effectively.
Possibility of importation improving this year at the nation’s port
In economic terms, the importation of luxury items has dropped by almost 70 per cent to 30 per cent. Then the essentials have even dropped to 50 per cent. Vehicles have dropped to 25 per cent. The economic policymakers of this country need to go back to the drawing board. They have all this data. The statisticians have the data. The CG once said it. They all feel, and it is obvious, that importation has dropped. If you get into some terminals that were previously loaded with import items, some of them are like open football fields now. Some of them barely stand to even survive. And what makes these people survive? The importers.
That is why we are clamouring that these importers should not be sandwiched into even losing all their capacities to import. Because without them, where would there be revenue generation? So, from an economic perspective, only a few are surviving to import now. The economic policymakers of this country are well aware of this, and we hope they go back to the drawing board and see how best we can mitigate these challenges.
With all these analyses, what is the effort of ANLCA to educate the government on how to improve things at the port?
ANLCA was 70 years old last year, 2024, because it was founded in 1954. And ANLCA, for 70 years, has been strong and stands tall. Since our national president, Mr. Emenike Nwokoji, took over the affairs of ANLCA, I am privileged to know that, tremendously, he has done a lot.
He started by visiting all the regulators and other government agencies. This is a man that shuttles. In a month, he will shuttle between Abuja, Port Harcourt, and Lagos more than four times. He has presented some of these white papers—things that will make this industry flourish, things that will make us be seen as a giant in the maritime industry.
Well, you know, whatever you are doing with government agencies or government representatives, it is not usually a fire-brigade approach. It is not usually a one-day affair. It is continuous. And ANLCA, as the umbrella body of licensed customs agents, cannot do otherwise than to continue giving, putting pressure, and putting it in the right perspective with the federal government on how best this industry can flourish. Because this is where we survive. Import duty collection is the second-highest revenue direction to the federal government of Nigeria, and we know the federal government, as well, does not joke with this sector.
Just like the 4 per cent Customs maintenance and operational fees that we mentioned, we believe the federal government will listen to us by the time we put our position paper forward as well.
How are you and your members coping with the current situation at the port?
ANLCA is by direct membership. To be a member of ANLCA, you must be a corporate organization—a licensed customs agent. We have close to 2,000 members. And by extension, each individual company, with staff, will not be less than 5,000 to 6,000.
The way we do it is this: For any government policy, we bring it and interpret it to our members and get them prepared. That is why it is important for customs to carry the associations along in implementing some of these policies. And what do I mean by carrying them along? By carrying the stakeholders along, giving them details of what this policy entails. Because we are always at the receiving end.
If we don’t tell them that this is the policy of government with the stakeholders… By the time it comes, it will come as a rude shock. And you know the effect of that on individuals, companies, and the economy. People will resist change. But if change is well propagated in a way that is well articulated, we see reasons why we must embrace it. Yes, it is not difficult. But we always want a situation whereby the government will carry us along.
While ANLCA, as a body, will carry members along, it’s been very tough, my brother, on this issue. Members are finding it difficult to cope within this period because importation has dropped, and people must survive. But ANLCA is trying to see how best we can interpret policies and, in some ways, assist members. We are even talking about having insurance for members.
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