Headlines

NPA raises alarm over abandoned explosives at Ikorodu terminal

—-warns it is ticking time bomb.

Eyewitness reporter

For the second time within this week, the Nigerian Ports Authority( NPA) has slammed the Nigeria Customs Service over its negligence which the agency considers as an impediment to smooth port processes.

During the week, the Chairman of the governing board of NPA, Mr. Emmanuel Adesoye, raised the alarm that the consignments of chemicals and alcoholic drinks that were abandoned by the Customs as overtime cargo at the Ikorodu terminal are ticking time bomb that is waiting to explode.

Mr Adesoye, who led other members of the board to the Tin Can islands ports on a working visit during the week, expressed fears that if nothing is done to evacuate the explosive consignments, they may cause an explosion akin to what happened at Lebanon ports August 2020.

The NPA board Chairman revealed that some of these consignments have been abandoned at the terminal for close to 44 years.

He stressed the need for the Ministry of Transportation and management of NPA to engage the Finance Ministry or management of the Nigeria Customs Service as part of measures to evacuate such dangerous cargoes.

According to him, a BMW car that was imported in 1977 for the sole aim of Festac 77 was spotted at the facility, pointing out that the situation of overtime cargoes at Ikorodu Terminal calls for concerns by all parties involved in the cargo clearance processes and revenue generation for the federal government.

Ikorodu Terminal

He also stressed the need for the management of the service to evacuate the long-abandoned cargoes at the Ikorodu terminal, pointing out that such consignments are a looming danger to government assets.

“So since we were there three years ago up till now nothing has been done by the customs to evacuate those overtime cargoes?”

“There was a BMW car imported for Festac 77 celebration. Then, we all know what happened in Lebanon where items of this nature caused a serious problem for the government.

“If there are chemicals as overtime cargoes in that facility that have stayed for so long, it can lead to an explosion.

“Honestly, the Customs should do something urgently to dispose of all those overtime cargoes because the way it is, for now, we need to engage the Customs management on the need to evacuate most of the overtime cargoes.” The NPA Chairman declared.

Earlier, Port Manager, TCIPC, Engr. Ibrahim Anji highlighted challenges faced by the management of the port with the operational activities at the Ikorodu Lighter Terminal.

Anji expressed worries that the congestion at the lighter terminal at Ikorodu, stressing that the terminal is saddled with the responsibility of handling overtime cargoes at the port terminals.

It would be recalled that the Acting Managing Director of NPA, Mohammed Bello-Koko, had also complained to the House of Representatives Committee on Customs over the apparent negligence of the Customs to its statutory responsibilities in cargo clearance.

Koko had claimed that the failure of the Customs to evacuate over 5,000 overtime cargo long abandoned at the Ikorodu terminal and other terminals across the nation’s ports was the contributory factor to the rising congestion at the ports.

Customs

Customs buckles as it suspends implementation of 4 per cent FOB charge

Funso OLOJO

In a manner demonstrative of a listening administration,the management of the Nigeria Customs service has suspended the implementation of the controversial 4 per cent Free on Board(FOB) charge on imports.

The suspension followed the outcry that greeted the implementation of the novel charge which importers and their agents said was jumped on them by the customs without notice nor consultation.

To allow enough time for stakeholders’ consultation and sensitization, the Customs said the suspension was sequel to the ongoing discussion with the Minister of Finance, Mr Adewale Edun.

In a press statement by the Customs management , the service disclosed that the timing of the suspension aligns with the exit of the contract agreement with the Service providers, including Webb Fontaine, which were previously funded through the 1% Comprehensive Import Supervision Scheme (CISS).

” The Nigeria Customs Service (NCS) hereby announces the suspension of the

implementation of 4% Free-on-Board (FOB) value on imports as provided in Section 18(1)(a) of the Nigeria Customs Service (NCSA) 2023.

“This is sequel to ongoing

consultations with the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr Olawale Edun and other Stakeholders.

“This suspension will enable comprehensive stakeholder engagement and consultations regarding the Act’s implementation framework.

“This presents an opportunity to

review our revenue framework holistically.

“Under the previous funding arrangement repealed by the NCSA 2023, separating the 1% CISS and 7% cost of collection created operational inefficiencies and funding gaps in customs

modernisation efforts.

“The new Act addresses these

challenges by consolidating “not less than 4% of the Free-on-Board value of

imports,” designed to ensure sustainable funding for critical customs operations and modernisation initiatives.

“This transition period will allow the Service to optimise the management of these frameworks to serve our stakeholders and the nation’s interests better.

“The Act further empowers the Service to modernise its operations through

various technological innovations.

“Specifically, Section 28 of the NCSA 2023 authorises developing and maintaining electronic systems for information exchange between the Service, Other Government Agencies, and traders.

“The Service is already implementing several digital solutions, including the recently deployed B’Odogwu clearance system, which stakeholders are benefiting from through faster clearance times and improved transparency.

“Other innovative solutions authorised

by the Act include; Single Window implementation (Section 33), Risk management systems (Section 32), Non-intrusive inspection equipment (Section 59) and Electronic data exchange facilities (Section 33(3)).

“The suspension period will allow the Service to further engage with

stakeholders while ensuring proper alignment with the Act’s provisions for

sustainable funding of these modernisation initiatives.

“The NCS remains committed to implementing the provisions of the Act in a manner that best serves our stakeholders while fulfilling our revenue generation and trade facilitation mandate.

“We will communicate the revised implementation timeline following the conclusion of stakeholder consultations” the service promised.

Headlines

MARAN convenes public discourse on controversial ICTN among contending parties

Funso OLOJO

Following the controversies that have trailed the planned introduction of the International Cargo Tracking Note, (ICTN), the Maritime Association of Nigeria, MARAN has disclosed that it is time to put the controversies to rest once and for all.

To this effect, the association, the leading maritime beat association in the industry, is set to organise an all important roundtable to examine all pertinent issues and controversies surrounding the concept and proffer lasting solutions.

The roundtable will bring together relevant players in the industry under one roof at the MARAN International Press Center in Apapa on Thursday, February 27, 2025 to dissect the subject – matter and point to the way forward.

Some of the key stakeholders expected at the event include Dr. Eugene Nweke of the Sea Empowerment and Research Center, SEREC, Dr. Segun Musa, Managing Director, Widescope Group will be on hand to deliver insightful address.

Other critical stakeholder expected at the event include Dr. Alban Igwe of the Importers Association of Nigeria and a representative from the Shippers’ Association Lagos State,SALS.

Two critical government agencies, the Nigerian Shippers’ Council, NSC who warehouses the ICTN, shall be delivering a paper on “Prospect And Challenges Of Proposed ICTN: NSC’s Perspective”, while the Nigeria Ports Authority, NPA, the former custodian of the project ,shall also be speaking on “Prospect And Challenges Of Proposed ICTN, NPA’s Perspective” on that day.

Speaking on the need for the roundtable, Mr. Godfrey Bivbere, President, MARAN, disclosed that there is an urgent need to put the controversies surrounding the issue to rest once and for all

“Since the news of the planned reintroduction of the ICTN filtered out, there have been widespread controversies from both the protagonists and antagonists of the concept, with each divide justifying its position”, the MARAN President noted.

“It has been a subject that has polarized the maritime industry and as the leading maritime beat association in Nigeria and in furtherance of our advocacy role, MARAN has decided to bring all the contending players under one roof to settle this issue once and for all in order to move forward and develop our sector which is very critical to the nation’s economy”, Bivbere concluded.

Headlines

Freight Forwarders call out NPA over duplication, illegal imposition of payment of ETO Call- up system fee on importers

Funso OLOJO

Freight Forwarders, under the egies of the Council of Managing Director of Licensed Customs Agents(CMDLCA) has accused the Nigerian Ports Authority(NPA) of illegally imposing the payment of fees for the ETO Call- up system on importers and their agents.

The National President of the Association, Mr Lucky Ayis Amiwero, make this allegations in his petition to the Managing Director of the NPA, Dr Abdulahi Datsotho.

In the petition dated January 25th, 2025 and a copy each sent to the Secretary of the Government of the Federation, Minister of Finance, Presidential Enabling Business Environment committee(PEBEC) and the Nigerian Shippers’ Council, Amiwero claimed that the payment of ETO Call- up system fees was not backed by any law.

He further submitted that the payment was a duplication as the importers and their agents have already paid for the service under the Port lease/ concession agreement as vehicle entry permit (VEP) and tenure parking rate(TPR) under maximum tariff for cargo due.

According to him ” ETO CALL-UP SYSTEM is not tied to any service on Import or Export for the processing of goods.

“it has no service that directly involves service to Importer/Licensed Customs Agents(LCA) but is an infrastructure developed for the access of Transport in to the Port, as a result of faulty Port Lease/ Concession Agreement that exclude Trailer Park and Holding Bay which clearly contravenes Trade Facilitation Agreement(TFA)”

Amiwero said that it was the responsibility of the NPA to free flow of traffic in and out of the Port to facilitate trade and not that of the importers and their agents.

He said the agency has to do this with passing its financial implications to the importers and their agents.

” It is strictly Nigerian Ports Authority(NPA) responsibility to regulate Traffic, within the Limit of a Port or the approach to a Port under Section 32-(a) .

“it is the legal responsibility of the authority(NPA) to provide for ease of access to the port , it is part of Nigerian Port infrastructure which is to facilitate trucks in to the Port.

“It is the responsibility of the Nigerian Ports Authority (NPA) to regulate the Traffic and not that of the Licensed Customs Agents/Importer.

” The ETO CALL_UP system is an infrastructure that is owned and operated by NPA contractor to perform NPA function, due to faulty lease agreement which, initially excludes Trailer Parks and Holding bay from the Lease / Concession, Agreement ,creating the bottleneck and gridlock to Access the Port.

“The Lack of legal framework to regulate the Economic interest in the Port, has given the Concerned Agencies in the Port, room to impose all kind of illegal fees on the cargo interest without concern for Service tied to charges and who is responsible for payment.

“This imposition makes our Ports one of the most expensive and unattractive within the sub-region with multiple charges, levies, fees which are not approved or cargo related, just like the ETO- Call System introduced by NPA, that has no cargo service tied to it, is clearly the responsibility of Nigerian Ports Authority(NPA) in line with Section 32-(a) Regulating Traffic, within the limit of the port or approach to the Port”

Amiwero further claimed that ETO Call- up system is part of the development of the Port which falls under the functions of the NPA which is part of the infrastructural development for the movement of vehicles.

Consequent on this, the freight forwarder wanted the NPA to utilise part of the 7 per cent Port development levy collected from importers and their agents on import for the execution and sustenance of ETO Call- up system.

“7% surcharge is paid by Nigerian Importers through the Licensed Customs Agents (LCA) on every import collected since 1978 till date.

“Nigerian Ports Authority(NPA) should utilize part of their 7% to provide for truck access to the Port going to the Terminals, which is covered statutorily under section 32-(a)”

He blamed the PBE and the NPA for leasing the existing holding bays for truck which has now resulted to traffic gridlock due to lack of space for trucks.

“The holding bay for trucks, that existed before port concession agreement within and around the ports, was ceded out to Terminal Operators as well as Land space, without providing alternative.

“All such spaces were ceded to Terminal Operators, forcing the trucks owners to use the available Port access roads to hold empty containers and wait as holding bay awaiting access to the Port to load client consignment”

“Before the ceding of Port operation to Terminal Operator in 2005, there was no such thing as Gridlock, each Port operated their Holding bay, where tucks wait to load their respective consignments in and out of the Ports.

“The Ports operated their holding bay and trailer parks as follows:

APAPA PORT: Holding bay are in the Port

TIN CAN ISLAND PORT: Its holding bay was at the front of the port

LILYPOND TERMINAL: Its holding bay was under the bridge in front of the Port

BRAWAL/PAN-ATLANTIC JETTY: its holding bay was in front of the Jetty and

TRAILER PARKS: was at Beger by Kirikiri Junction”