Connect with us

Customs

Ember months: Cargothrouput slumps by 40 percent at Nigerian ports

—- Customs laments

—-Importers stop importation
The Eyewitness News investigation
The high frequency of importation and goods clearance activities which characterise port operations during the festive period of December has virtually disappeared from the Lagos ports.
Extensive investigations conducted by our reporter confirmed the general apathy among Nigerian importers to ship goods into the country during this year’s yuletide period.
Long rows of vessels on anchorage waiting to discharge their cargo which is a common sight at this period of time at the ports are absent.
The international liners which normally made two to three visits to the Lagos ports in months could hardly get cargo, thus reducing their voyage to the ports to avoid wastage.
Sources close to these shipping companies such as Maersline, Mediterranean Shipping Company (MSC), China Cosco, CMA CGM Group, Hapag – Lloyd, Ocean Network Express (ONE), Evergreen Marine Corporation claimed that each of these liners has lost between 10 percent to 20 percent cargo due to non-patronage.
Sources close to the Customs, who confirmed this development, attributed the lull to a number of factors.
According to sources, the Ukraine/ Russian war, the ravaging COVID-19 in China, unfavorable Customs policies, Naira depreciation, High exchange rate and the recent naira redesigning have all combined to castrate the financial power of most Nigerian importers.
A highly placed source in the Customs explained how each of these factors imparted goods importation to Nigeria.
According to him, the Ukraine-Russian war has affected ship voyages as no shipping company would want its vessels caught in the ongoing crossfire between the two European countries.
Also, the Black sea shipping route, which is within the war zone, accounts for the sea route that about 90 percent of vessels take to reach their destinations in the world, including Nigeria.
This, the source said, has reduced the number of vessels calling at the Port during this period.
Also, according to the United Nations Conference on Trade and Development, the maritime industry has seen an increase in global demand and the cost of shipping.
Most countries, including Nigeria, have come to rely on some of the goods from Ukraine and Russia such as grains, iron, and steel etc.
This has placed Maritime transport infrastructure and services under pressure due to the need for alternative trade routes for Ukrainian goods.

The tone of the global trading and shipping environment has been characterised by uncertainty as a result.

The United Nations Conference on Trade and Development (UNCTAD) acknowledged the disruption of regional logistics, halted port operations in Ukraine, the destruction of infrastructure, trade restrictions, increased insurance costs and higher fuel prices as causes of issues within the Black Sea region.

Jan Hoffmann , Head of Trade Logistics branch at UNCTAD, says: “The war in Ukraine impressively shows again how globalised the shipping business is: Shifts in demand in one corner of the world lead to changes in prices and fleet deployment in many other corners of the world.

“What I find most interesting of our findings is that almost half of the increase in global food prices is due to the higher shipping costs.

“And these are higher  because goods have to travel longer distances, i.e. we have more ton-miles, but also  each ton-mile is now more expansive, because of a shortage of global shipping capacity.”

In 2020, grain prices and shipping costs were already increasing and the Ukraine conflict has accelerated this trend.

According to UNCTAD, between February and May 2022, the price of dry bulk goods transportation had risen by around 60%.

Around 36 countries import over 50% of their wheat from the Russian Federation and Ukraine and global sea exports of grain are expected to decline by 3.8% this year while global shipments of fertiliser decline by 7%.

“Black Sea ports normally account for over 90% of Ukrainian overseas grain shipments, weekly port calls have dropped from 60 to almost zero in Ukraine due to the conflict”

In addition, the high dollar exchange rates to the Naira as well as the high Customs exchange rate for goods clearance have all impacted the purchasing powers of Nigerian importers.

It could be recalled that for yet another time in September, the Customs exchange rate was jerked up from $409 to $422.3, an increment of $13.3.

” Also the recent naira redesigning policy of the government and the coming elections in the country have all created an atmosphere of uncertainty among importers who prefer to stop importation until after the elections when there would be some sort of clarity, and stability in government economic policies,” a source said.

This lull has therefore put pressure on the men and officers of the Nigeria Customs Service to meet their revenue targets amidst sluggish importation.

”We are under pressure to rake in more revenue for the government despite low imports.

“This is because the revenue from the Customer has become a financial mainstay for the government which now relies on Customs to fund some of its recurrent expenditure, especially payment of salaries for workers” a highly placed source declared.

“To cushion the effects which the lull in importation may have on our revenue generation, we have to tighten the noose by plugging all the revenue loopholes to generate maximum revenue”

” Some of the areas where we hitherto overlook by giving the importers and their agents a breathing space to operate have now been tightened up for maximum revenue collection” a customs source declared.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Customs

Tin Can Customs nets N574.3 billion in 2022 —–records N242.365 billion in exports

The Eyewitness reporter
The  Tin Can Command of the Nigeria Customs Service has realized a sum of N574.3 billion in 2022.
The Customs Area Controller (CAC), Tin Can Island Port Command, Comptroller Olakunle Oloyede, disclosed this at a news conference at weekend.

Oloyede said the figure represented an increase of N80.90 billion or 16.39 percent when compared with N493.4 billion recorded in 2021.

“This feat can be attributed to the constant rejigging of the existing measures geared toward sustaining the command’s revenue profile.

“It is as well as utilisation of some disruptive strategic measures such as: periodic capacity building, reshuffling and redeployment of officers using the Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis and implementation of the Vehicle Identification Number (VIN) valuation,” he said.

He noted that the command also ensured robust and continuous stakeholder engagements and collaborations with all sister government agencies and maritime associations.

“These led to timely intelligence sharing, utilisation and voluntary compliance to government’s extant laws by the trading public,” Oloyede said.

He added that the command increased surveillance on declarations made in order to sniff out improper declarations as well as offending items.

He pointed out that the system paid off with the command recording a total of 38 seizures with a Duty Paid Value (DPV) of N1.85 billion.

“These seizures comprise 763kgs of Colorado (Cannabis Sativa) weighing 345.1kg with a street market value of N714.6 million only as given by the National Drug Law Enforcement Agency (NDLEA), 5 x 40 containers of used motor tyre (5,060 pieces).

“Also among seized items are 1,150 bales of second-hand clothing, 1,190 cartons of 20 per carton of potassium bromate and baking powder, 11,392 cartons of 1,200 per carton Pharmacol injection chloroquine phosphate 322.5mg.5ml (IV and IM), 206,000 pieces of finished machetes.

“Also, 1,383 cartons of 50 rolls per carton of cigarettes, 650 cartons of 50 pieces per carton of new ladies shoes, 2,666 pieces in 36 pallets of new starter Ex-Premium Inverter Battery, 1,980 cartons of assorted non-alcoholic beverages and 1,048 cartons of Tilda basmati rice,” he said.

Oloyede listed others as 2,594 pieces of ammunition and 20 pieces of arms comprising of one pistol with 611090 (S/W) model JCP 40mm, one used Co2 air pistol with accessories cal 117(4.5m)BM, one marksman repeater pistol, six Mace pepper gun and 10 suspected arms of various types.

He said that the seizures when compared with the 2021 record of 27 seizures with a Debit Note of N607.27 only, show an increase of 11 seizures and N1.24 billion.

He said that the increase in the DPV rate could be associated with increased surveillance and intensified anti-smuggling drive, the high value of seized items and Naira depreciation that led to higher exchange rates on imported items.

“These prohibited items were seized and forfeited to the Federal Government in line with the provision of Sections 46 and 161 of the Customs & Excise Management Act (CEMA) Cap 45 LFN 2004 and Absolute Prohibition List of CET 2022- 2026.

“The command pertinently acknowledges the prominent roles played by the Customs Intelligence Unit, Valuation Unit, Federal Operations Unit, CGC Strike Force as well as interventions of Sister Regulatory Agencies like the NDLEA, Standards Organisation of Nigeria SON, the Nigeria Police and others in ensuring these seizures and detentions were made.

“A total of 60 suspects were detained in 2022 and were granted administrative bail while the command has 8 cases pending in court,” he said.

Oloyede said the command recorded a significant increase in the Free On Board (FOB) of exports in the period under review to the tune of $589,696,648 (N242,365,322,333.00) as against the $496,075,796 (N141,985,109,159.00) recorded in 2021.

He attributed the increase of 34.4 percent in the FOB to the high quality and value of exported commodities.

“However, the export report shows a decrease in tonnage of export from 1,723,986.8 in 2021 to 336,179.5 in 2022.

“The decrease in tonnage could be connected to current government fiscal policy which prohibited the export of wood and wood products as well as the global unrest with its concomitant economic challenges,” he said

He listed the commodities exported through the command to include: cocoa beans, insecticides, dried ginger, empty bottles, soya beans, cashew nuts, cigarettes, rubbers, cocoa butter, frozen shrimps, copper ingots, aluminum ingots, sesame seeds and other manufactured items.

“Cocoa beans were the highest exported commodity while the legend stout was the least exported commodity.

“The future of export in the command looks brighter as the command in line with the headquarter circular on Export Standard Operating Procedure (SOP) released a Port Order on the Command’s harmonised SOP for the seamless facilitation of Export Trade in strict compliance with Extant Laws and guidelines on Export,” he said.

Continue Reading

Customs

”No container will leave Apapa Port without 100 percent physical examination”

 

declares Auwal Mohammed as he takes over as new Apapa Customs Area controller

—promises to surpass N1 trillion revenue mark

—vows not to facilitate non-compliant traders

 

The Eyewitness reporter

Despite the deployment of cargo scanning machines, the new area comptroller of the Apapa command of the Nigeria Customs Service, Comptroller Auwal Mohammed, has vowed that no container shall leave the Apapa port without a 100 percent physical examination.

Comptroller Mohammed, who formally took over the mantle of leadership of the command Friday, 27th, January 2023, from Ag. Assistant Comptroller-General of Customs(ACG) Malanta Ibrahim Yusuf, said that the decision to subject all cargo to physical examination was meant to account for every content of container passing through the command and to maximize revenue returns to the Federal Government.

He, therefore, warned non-compliant traders to steer clear of the command as he would not facilitate their trade as he desired to surpass the one trillion revenue mark achieved by the command under the former area controller Yusuf.

”We shall continue to conduct 100 percent physical examination of cargo so that we can account for all the cargo in the containers and to generate more revenue so that we can surpass the one trillion revenue collection that the command has already achieved. No package, no container should leave Apapa port without a proper 100 percent physical examination.” the new Comptroller told his officers who had gathered to welcome him.

He continued ”Today marks another era in the history of the Apapa command of the Nigeria Customs Service. I am inheriting a well-structured area command. The level of achievements and status achieved under my predecessor will be sustained while I will look for all means to surpass them.

I am ready for the job. I am aware of the big shoe I am stepping into but I am well prepared for it”, Comptroller Mohammad said.

He, therefore, asked the officers to be at their utmost best to cooperate and work with him to sustain and surpass the legacies of his predecessor.

He also solicited the support and cooperation of stakeholders whom he promised to engage with and updated frequently on all issues and policies that will enhance their trade and performance of the command.

The new helmsman also charged all the releasing officers and the image analysts who will be conducting the scanning of cargo to be diligent and exhibit the utmost sense of responsibility and professionalism in their duty so as not to release uncustomed goods.

Mohammed, who was redeployed from Onne Port Area Command when he was the area controller, also enjoined the importers and their agents to be compliant with the cargo clearance procedural processes in order to enjoy a seamless cargo release.

”The goods clearance procedure is simple. Everything starts and ends with declaration and if there is a proper and correct declaration of cargo, there won’t be any need for delay and unnecessary interference with the process”, he admonished.

Earlier, the outgoing Area Controller, Ag. Yusuf, while handling over the operations and procedures of the command to his successor, solicited the support and cooperation of all the officers and other stakeholders for the new helmsman, urging them to avail the new comptroller of the same level of support, guidance, and cooperation and advice they gave him.

He also lauded the untiring efforts of his officers whom he said were instrumental in the monumental achievements recorded by the command under his watch.

Consequently, some officers who excelled in the discharge of their duties were commended and awarded certificates of merit, including the indefatigable Public Relations officer of the Command, CSC Abubakar Usman.

 

 

Continue Reading

Customs

Hameed Ali, Customs boss, in last minute  frenzied promotion, reshuffle of officers 

CGC, Ali
The Eyewitness reporter
In what appears to be his last major assignment before his second-term tenure as the Comptroller General of the Nigeria Customs Service winds down on May 29th, 2023, Hammed Ali, the Customs boss, has undertaken a comprehensive restructuring of the service through mass promotion, a reshuffle of the management team and rejigging of the area Controllers.
Col.(rtd) Ali kickstarted the massive exercise with a promotion galore of officers when on January 5th, 2023, three ACGs were appointed and 1490 officers were promoted to their next ranks by the Customs board upon his recommendation.
Not done yet with what stakeholders described as his parting gift to officers, a week later, the CGC announced the reshuffle of the management team of the service by infusing some newly promoted ACGs into the team while swapping the positions of some old members.
The icing on the cake was when he reshuffled the Area Controllers by rewarding some newly promoted Controllers with juicy Area commands while swapping the positions of the old ones.
The latest exercise, announced Saturday, January 21st, 2023, was the new disposition at the command structure of the service.
In the new posting, Comptroller Timi Bomodi, who was until now, the National Public Relations Officer of the Service and newly promoted to the Comptroller cadre, was posted to head the Kirikiri Lighter Terminal (KLT) in Lagos, while  Comptroller Dera Nnadi, who had just concluded his management course at the National Institute of Policy and Strategic Studies, Kuru, near Jos, was posted to Seme Area Command as its Area Controller.
Nnadi had a short stint at Ogun Command, Idiroko, as its Area Controller before he left for NIPSS.

In the new posting, Comptroller Auwal Mohammed was moved from Port Harcourt Area 2 command to head Apapa Command vacated by the revenue czar in the service, ACG Malanta Ibrahim Yusuf.

Others include Compt OA Salefu who now heads Western Marine Command Lagos, Compt AM Ibrahim heads PTML Terminal Lagos and Compt M.S Yusuf superintendents over the Muritala Muhammed Airport command in Lagos.

Compt CD Wada goes to Port Harcourt Area1 command as its Area Controller, while M.I Jalo heads Federal Operations Unit Zone B  while B . Mohammed heads Lillypond command in Lagos.

The promotions and reshuffle of officers have however elicited mixed reactions among the Customs officers.

For those who benefited from the parting gift of Hammed Ali, it was a welcome development, but for those who hold the short end of the stick in the exercise, it left a sour taste in their mouth.

Continue Reading

Trending

%d bloggers like this: