Indications have emerged that the ban on 41 items and the high import duties on
cargoes are responsible for the low
business activities in the ports.
A
report by the Nigerian Ports Authority (NPA) recently shows that about 341 vessels entered
Nigeria in September 2016, the lowest in nine months and a fall from 400
recorded in August 2016 and cargo throughput also dropped from 6.3 million
metric tonnes in January this year to 5.6 million in September, also the lowest
in the year.
The statistics further showed
that a total of 3,347 ocean going vessels have called Nigeria so far this year,
estimated at about 100,152,274 metric tonnes. The breakdown showed that the
Lagos Port Complex, Apapa, received 318 vessels in the third quarter as against
301 in the second quarter.
Tin Can Island Ports received 406
vessels in third quarter, as against 368 in the last quarter; Rivers Ports, 80
ships as against 84 in the previous quarter; Onne received 152 vessels as
against 163; Calabar Port, 51 as against 52; while Delta Port received 132 as
against 109.
Experts have blamed the drop in
cargo volume and huge loss of revenue by port and terminal operators on the
anti-trade policies of the Federal Government. These policies have also made
the country unattractive to investors.
The President, National Council of Managing
Directors of Licensed Customs Agents (NCMDLCA), Mr. Lucky Amiwero, said the
current hike in import duty on vehicles in 2014 and 2015 from 10 per cent to 35
per cent with an additional surcharge of 35 per cent, bringing the total tariff
to 70 per cent, has negatively impacted operations at the port and led to
massive revenue and job loss.
He said the arbitrary import duty
hike led to the diversion of vessels carrying vehicles to the ports of
neighbouring West African countries, thereby boosting operations in those ports
– especially the Port of Cotonou – at the expense of Nigerian ports.
The development has also
negatively affected the operations of dockworkers, licensed Customs agents,
freight forwarders, truckers and others.
According to him, the reduction
of activities by 70 per cent in the operation of terminal operators who pay the
Federal Government based on cargo, through earnings and shipping companies, has
drastically affected their activities.
In a statement, the spokesman of
the terminal operators, Mr Bolaji Akinola said that at present, Nigerian ports
have lost about 80 per cent of their vehicle cargo as a result of this hike,
which has done more harm than good to the economy. He said that the hike has promoted smuggling and led to huge loss
of government and private sector revenue to the advantage of the ports of
neighbouring countries.
“ It is estimated that no fewer
than 5,000 jobs and about N30billion is lost annually to the policy.
Investigations also show that
break bulk terminals at the ports are struggling to pay their bills and meet
their financial obligations to the Nigerian Ports Authority (NPA) due to the
plethora of banned products and the hike on import duties on others.
For instance, the hike in import
duty on rice, the restriction imposed on the importation of fish and on cement
are all taking a huge toll on the income of the break bulk terminals as their
revenue has dipped by over 60 per cent. The imposition of 100 per cent import
duty on rice and an additional 10 per cent levy have had the most debilitating
effect on the break bulk terminals as handling of rice cargo accounts for more
than half of their revenue” he said.
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