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 House of Reps summons Mele Kyari, Amaechi over violation of Cabotage law

Rotimi Amaechi
Eyewitness reporter
The House of Representatives has summoned the Group Managing Director of the Nigerian National Petroleum Corporation (NNPC), Mele Kyari, over the alleged award of a coastal shipping contract to a foreign company.According to NAN reports,  Rep. Legor Idagbor, the Chairman, House Committee on Nigerian Content Development and Monitoring, issued the summons on Wednesday, in Abuja, during an investigative hearing on the contract allegedly awarded in 2020.

He said that the award of such contract to a foreign company, UNIBROS, was in breach of the law while asking the NNPC GMD to appear before it on Oct 13.

The House said if the NNPC failed to appear, the process of the law and the powers given to the National Assembly would be followed to deal with the corporation.

The House also summoned the Minister of Transportation, Rotimi Amaechi, as well as the Nigerian Content Development and Monitoring Board (NCDMB).

He directed the NNPC, Transportation Ministry and the NCDMB to furnish the committee with every single detail of the contract, as it did not have a single document in relation to the contract in its possession.

According to a letter from the Executive Chairman of the Federal Inland Revenue Service (FIRS), Mohammed Nami, read at the hearing, UNIBROS was not registered in its database and that payment had been made in the name of the company.

President of the Shippers Association of Nigeria (SOAN), Dr George Onyung, who was at the hearing, said that the NNPC sidelined local shippers and, without due process, awarded the contract to UNIBROS, in spite of the fact that local shippers had the capacity to carry out the job.

“The NNPC awarded the contract to UNIBROS. It is a coastal shipping contract. It is one contract, but for 11 vessels. That is the whole share of coastal shipping.

”This means that when those vessels that bring the product from abroad arrive Nigeria, the ships that would take the products to various jetties that have the shallow draft, which is a cabotage trade to start with, is supposed to be domiciled in Nigeria”, he said.

He added that the NNPC hired up to 11 to 14 ships to be able to do that trade and then supply those products.

“They gave it to one company called UNIBROS, and all those ships are foreign flags, all are foreign-owned, and they do not hire Nigerians.

Idagbor observed that based on the submissions of the ship owners’ association, they had shown that they have the capacity to handle the contract.

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Freight Monitor

Freight forwarding business under threat as Customs Agents lament high cost of goods clearance at ports

We are diversifying into other businesses to stay afloat– ANLCA Chieftain cries out.

Funso OLOJO 
This is not the best of times for freight forwarders who ply their trade at the Nigerian ports.
This is because their cherished trade is under threat due to the astronomical increase in the cost of clearance of goods at the ports.
Due to the plethoral of charges slammed on importers/ Shippers at the Port, most of them could not afford to bring in as many containers as before while others have outrightly stopped the importation business.
This development, our reporter gathered, has therefore put the freight forwarding business on the brink of collapse due to lack of patronage.
According to the cost analysis of cargo clearance procedures at the Port, an average importer, using the Nigerian ports, pays more than six different exorbitant charges apart from customs duties.
For instance, before an importer could exit his goods from the ports, he pays the following charges.
a. N500,000 NAFDA Certification
b. N500,000 SON Certification
c.45 per cent( up from 30 per cent) terminal operators and shipping companies service fees/ charges
d. N 150,000 to N200,000 NESREA/ other Environmental Agencies charges
e. N45,000 per day demurrage on 20- footer container
f.N68,500 per day demurrage on 40- footer container
g.20 million Customs duty on 20- footer container
h.26 million Customs duty on 40- footer container.
In addition to these charges, the Nigerian Ports Authority (NPA) has recently increased its tariff by 15 percent.
It could also be recalled that the Nigeria Customs Service only recently put on hold the 4 per cent Free on Board (FOB) charge on imports due to the outcry of freight forwarders .
However, the FOB charge would eventually be reinstated later after sufficient consultations and sensitization are carried out by the customs.
Alhaji Mukaila Abdullaziz, the former Sole Administrator of the Association of Nigerian Licensed Customs Agents(ANLCA) said the listed bills are more than that.
“What you have just listed was an average cost, they are more than that” he declared with a hint of bitterness in his voice, when asked to confirm the cost analysis as the foremost freight forwarder in the industry.
” The Customs’ Federal Operations Unit(FOU) is still there.
“Their officers will lay siege on the road for a container that have already paid the exorbitant fees you have mentioned.
“They too will slam their panthom charges on the already exited container and if you don’t pay, they will impound it and take it to their office” the ANLCA Chieftain declared.
When asked how freight forwarders break even in the face of these multiple charges, Abdullaziz retorted;
” We are not breaking even .No agent is breaking even except the dare- devil ones who are ready to do anything to break even.
“But for some of us who are old hands on the job and have names to protect, we are not breaking even because we are not ready to compromise the system”
“That is why most of us have diversified into other businesses to stay afloat”.
“The freight forwarding industry is dead” he said with a hint of regret in his emotion – laden voice.
Our reporter could confirm that most of the old hands in the freight forwarding business have diversified into hospitality business as they are owners of choice hotels spread across Lagos and other commercial cities in Nigeria.
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Headlines

Dantsoho,NPA MD, plays host to Japanese agency, Vicky Haastrup for strategic collaborations

Funso OLOJO 

In continuation of his strategic engagements with institutions and individuals that would drive the operational efficiency of the agency, the Managing Director of the Nigerian Ports Authority (NPA), Abdulahi Datsotho, has played host to Chief Representative of the Japan International Cooperation Agency (JICA) Mr. Yuzurio Susumu at the NPA Headquarters Marina.

The meeting focused on harnessing the technical and allied synergies necessary to actualize the Dantsoho-led Management team’s quest to deepen the eco-friendliness of Nigerian Ports through renewable energy and increased automation.

JICA  is an implementing agency of Japanese Official Development Aid (ODA) for the purpose of supporting the socioeconomic development and economic stability of developing regions.,

Similarly, Dr Dantsoho received in audience Olori Vicky Ayodele Haastrup, the wife of His Imperial Majesty, Oba Clement Adesuyi Haastrup, Ajimoko III, Owa Obokun Adimula and Paramount Ruler of Ijesaland at the NPA Headquarters.

Princess Vicky Haastrup, who is also Chairperson Seaport Terminal Operators Association of Nigeria (STOAN) pledged the institution’s support for the Dantsoho-led management team’s renewed effort at advancing the frontiers of trade facilitation.

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Customs

Apapa Customs concludes three-day refresher training for promoted senior officers

Funso OLOJO 
The Nigeria Customs Service (NCS) Apapa Area Command has concluded
a three-day refresher training programme for its newly promoted Deputy Controllers (DCs) and Assistant Controllers (ACs).
Declaring the training open on Monday, 10 February 2025, the Customs Area Controller (CAC), Comptroller Babatunde Olomu, emphasised the Command’s commitment to continuous professional development.
“For newly promoted DCs, you are captains of vital entry and exit points and responsible for overseeing all operations, among others.
” Your leadership skill must be instrumental in optimising efficiency and maintaining the highest standards of professionalism within your terminals”, the CAC stated.
He also highlighted the newly promoted Assistant Comptrollers’ crucial role.
 “Similarly, for the ACs, you are gatekeepers responsible for the final checks and approvals that allow goods to move in and out of the port.
“Your attention to detail and understanding of regulation, among others, is paramount in preventing revenue leakages and ensuring national security”, he added.
Comptroller Olomu described the training as an interactive forum for sharing best practices, addressing challenges, and clarifying any ambiguities in Customs procedures.
He assured of the Service’s management team’s commitment to providing the necessary tools and support required for the success of personnel.
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