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Why it costs so much to clear goods in Nigerian Ports - Ezeibe

 
 

By Madu Obi


AN industrialist and foremost importer, Chief Ben Ezeibe has identified the causes of delay in cleaning goods from the Nigerian Ports and why importers spend fortunes there


Ezeibe, who is the Chairman of Coopers B V & Co Ltd, warned that if government does not solve the problem at the ports and curb the sharp practices, the country's economy will continue to nosedive.


According to him, all the protests about bad governance, hunger in the land and high cost of living, are due to exorbitant amounts charged at the ports to clear goods because the country relies so much on imports


He said: "Most of us in the organized private sector are hard hit, but we don’t talk. As things are, the country can’t make process under the prevailing situation.


Devaluation of Naira is a serious problem, particularly for those of us who import raw materials. The cost of production is determined by the value of the dollar and when we pay so much to clear imported raw materials, the ripple effect is on the final consumer.


The emphasis towards reviving the economy should centre on the activities of those working at the ports. Nigeria Customs is the major source of the nation’s revenue and I can describe it as government's ATM, which is why they milk the importers who pay so high.


In Nigerian ports, many consignments are kept there because the Customs officials are deliberately delaying them. And the more these goods are delayed, the higher the cost, as demurrage is paid on daily basis.


Before the present administration came on board, we were paying about N9 million for a container, but it has been raised by almost 300%. And the more they are delayed, the more money we pay.


For the past 20 years, we have been clamouring for 48 hours clearance of goods, which we are sure is possible. But they prefer not to make this possible because of corruption. Nigerian ports can clear goods within 48 hours as it is done in other countries, including our neighbouring countries.


"Another problem in Nigeria is that the custom officials use the clearing agents to bargain and increase the cost of clearing goods. They don’t like dealing with us directly, which could help to reduce the cost of manufactured or imported goods.


There is also this problem of custom officials planting their men on the roads to extort money from importers moving their goods from the ports to the hinterland after all the duties have been duly paid.


They use Federal Operations Unit, FOU, to monitor the movement of goods and if you don’t settle, they seize the goods and will be charging demurrage on the containers when they are seized.


They can just tell you that they have received alert that the container is carrying something different from what was declared at the ports. These are the reasons why fighting corruption in Nigeria is very difficult.


If one does not know his right, the Customs will continue to exploit him. In the Customs Long Room, an importer can pass through several tables and you must drop money on each table."

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