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The thriving business of corruption at Nigerian ports

Uchechi Dibiaezue 

As evidenced by the Nigerian port systems, corruption often arises from inefficient systems.

Inter-agency coordination and process modernization can curb corruption to a significant extent.

There are key indications that poor policy directives and procedures impede the ease of doing business at ports, thereby making it difficult to combat corruption.

As a Nigeria-based compliance professional, I know this firsthand – and the example of Nigerian ports can inform others monitoring global supply chains.
 Corruption often occurs alongside a failure to bring transparency to the system.
This failure has become a notorious gateway that facilitates the giving and taking of bribes by public officials and other individuals working within the Nigerian ports.
Corruption is a self-serving cash cow for those raking in millions of naira from port operations.

But new strategies and methods to prevent corruption, including introducing technology into the mix, are expected to make a huge difference in reducing corruption and increasing efficiency at Nigeria‘s busiest ports.

A Robust Corruption Strategy

Many inefficiencies exist in service delivery within the ports that offer opportunities for public officers to engage in illegitimate transactions for monetary gain.
 For example, public officials of government agencies working and operating within the ports prefer to physically examine cargo instead of using scanners.
To circumvent this inefficient approach, bribes are offered to public officers enforcing these tedious processes.

Another conduit for corruption is the mode of cargo inspection.

 Public officials are mandated to routinely board vessels that berth at the ports. However, for years, multiple agencies have carried out inspections in an unplanned manner.
 Each agency determines when to carry out an inspection process rather than collaborate with other agencies to undertake one inspection process.
 So, a ship undergoes several inspection checks by different agencies inspecting cargo at their own time and pace. This inefficient procedure causes inordinate delays.
Many ship captains prefer to offer bribes or other forms of gifts to public officials to circumvent this cumbersome and inefficient process.

These examples illustrate how poor policy directives create lucrative avenues for the giving and taking of bribes.

 One may, therefore, suggest that a new policy directive will bolster better service delivery, as well as improve efforts to tackle corruption in the ports.
A 2014 corruption risk assessment at the Nigerian ports of Onne, Warri, Port Harcourt, Calabar, Apapa and Tin Can, it was discovered that a lack of awareness of operating procedures by users (agents, exporters, importers) was a driving force in corruption.

Visitors to the ports do not always know the official timelines for services offered by port operators, so it is often impossible to know the actual waiting time before receiving the service, or even the relevant documents to be submitted to obtain a service.

Most port users rely heavily on public officials, oftentimes unscrupulous ones, to transact business within the ports. The result is that various countries, companies and state authorities become active participants in acts of bribery.

A Purposeful Rein on Corruption

In a bid to bridge the knowledge gap, a single process card, the Nigerian Port Process Manual (NPPM), was funded and developed by the Nigerian Ports Authority.
This manual was launched for use on December 9, 2020, with the Nigerian Shippers Council as the lead implementation agency.
The manual describes the services offered by port operators so that anyone visiting the ports can follow effortlessly.

It outlines and guides users by highlighting all required documentation, procedural steps, payments, timelines and the responsible agencies for each process in the port.

This manual boosts public awareness and understanding of port procedures, thereby encouraging efficiency and accountability.
 It should also reduce incidents of bribery, as port users know the various agencies charge of specific services, eliminating the middlemen in the system.

Key benefits of the NPPM include:

1. It facilitates a mechanized approach in conducting business at the ports in line with global best practices rather than the inefficient analog procedures in use.
Key stakeholders in the ports, including the Nigerian Maritime Administration and Safety Agency (NIMASA) and the Nigerian Shippers Council (NSC), reached an agreement to implement measures that will minimize direct human contact onboard vessels calling at the Nigerian ports in line with the provisions of the NPPM.

2. It ensures coordination and cooperation between government agencies at the ports.

 Before the launch of the NPPM, foreign ships and the international community calling at the ports complained of delays and huge costs incurred because of separate boarding and inspection by ports authorities.
To address the complaints and utilize the NPPM effectively, the NSC, NPA, Nigeria Customs Service (NCS), Nigerian Immigration Service (NIS), Port Health and the Department of State Security Service (DSS) all agreed to collaborate and jointly inspect vessels calling on Nigeria.

3. The manual supports the introduction of new technology at the ports to curb illegal activities and rid the ports of corruption, including an electronic call-up system to reduce traffic congestion at the ports.

Especially in ports and off-dock terminals with heavy vehicular and human traffic, Apapa and Tin Can, the two busiest ports in Nigeria, will be a big improvement.

For years, a manual truck scheduling arrangement has been in use. However, in February 2021, the NPA came up with an electronic truck call-up system to deal with the recurrent traffic gridlock responsible for delays along the access roads leading to these ports.

The truck call-up system, also known as Eto, which means “to schedule” in the Yoruba language, is now used for access to the port for cargo trucks and by shipping companies to transfer empty containers.

It is important to note that the Nigerian Port Process Manual will help reduce corruption as it pushes for greater cooperation and collaboration among the various government agencies working in the country’s ports.

These collaborative efforts can drive down the rates of giving and taking bribes significantly with the integration of technology alongside other policy directives to improve service delivery. It will attract more business to the ports as compliance boosts efficiency, transparency and accountability.

Uchechi Dibiaezue is a member of the A&E Law Partnership Compliance, Ethics and Integrity Support practice as well as the Regulatory and Institutional reform team. She is an attorney with over 18 years of legal practice experience.

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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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