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Freight Monitor

Farinto backs hike in terminal charges, says galloping inflation, declining value of naira make it inevitable

Kayode Farinto
The Eyewitness Reporter
Amidst the public outrage in the port industry against the recent increase in terminal charges by the terminal operators, Kayode Farinto, the immediate past Acting President of the Association of Nigerian Licensed Customs Agents,(ANLCA), has thrown his weight behind the service providers for increase.
It would be recalled that the terminal operators had on October 15th, 2023,  effected an increase in terminal charges by about 600 percent, having secured the approval of the Nigerian Shippers’ Council, the economic regulator of the maritime industry.
This has however sparked outrage among the freight forwarders who condemned the hike.
But Farinto, one of the foremost Customs brokers in the industry, declared that the terminal operators were justified in raising their charges due to the exigencies of time and in response to the economic realities in the country, adding there is nothing the raging freight forwarders could do.
He noted that the rising cost of diesel, the declining value of the naira and the high rate of inflation, among other factors, justified the need for an upward review of terminal operators’ charges.
“We all know that the indices of working in the port now are not as they used to be and things have changed.
”The terminal operators too are Nigerians and if we juxtapose what is happening vis-a-vis the fact that there has been an increment in prices of fuel and the dollar has risen, so there has to be a rise in their charges too.
”We are in an era where you cannot predict the dollar and these people are rendering services so it becomes inevitable for them to increase. Nobody should be criticized for that.
”But I want to commend them because they are coming late in increasing their charges because I know that if it were to be the old operators, they would have increased the charges but they took their time before they did this. There is nothing anyone can do about it,” he said.
Farinto also charged the Federal Government to repair the dilapidated port access roads to reduce the hardship faced by importers and their agents.
“Government has failed in its responsibility ab initio to even provide the services they need to provide. What are these services? It was in the concession agreement that the government would provide electricity 24/7 but this has not been made available. It is still the same terminal operators that are providing electricity so government must go back and do that.
”Secondly, the government must put in place all the roads that are dilapidated, particularly the access road to the seaports and I have also said that it is high time we delineated the port area. As we speak, we do not know which area is the port area and that is why we have miscreants encroaching on the port area.
“If I were in government, I would say, let us delineate the port area. Let us start from Ijora and if it’s along Mile 2, the port area starts from Mile 2. After delineating the port area, they will also do geo-fencing so as to monitor the port area. These are the things the government needs to put in place so that the properties of people are secured.
“If the government is able to perform its responsibility, there will be no dollarisation of collecting money from terminal operators. This is because as the terminal operators pay in dollars, they will also transfer the increase to the storage tariff.
“This government should fulfill its promise to us. They told us they are going to give mitigants that will cushion the effect of the hardship experienced by the people. If I were the government now, part of the mitigant is to make sure that any terminal operator that wants to pay should pay in the equivalent of naira and not pay in dollars, which is not predictable now,” he said.
He also commended the government for lifting the forex ban on 43 items, which could hitherto not access foreign exchange on the official market. He said the ban caused inflation and “encouraged false declaration in cargo clearance”.
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Freight Monitor

APFFLON: A clout chaser in maritime industry?

Funso OLOJO
The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has gradually turned itself into an “attack dog’ in the maritime industry.
Established about 10 years ago, the association has consistently turned itself into an “opposition party” to other registered associations recognized by the Council of Regulation of Freight Forwarding in Nigeria (CRFFN), working at cross purposes with the registered groups.
 
The  CRFFN is the regulatory agency of government which regulates the activities and operations in the freight forwarding industry in Nigeria.
 
For individuals, corporate bodies and freight forwarding groups to operate legitimately in the industry, they must be registered with the CRFFN.
 
So any individual, corporate body and freight forwarding group which is not recognized and registered with the CRFFN is deemed to be operating illegally in the freight forwarding industry in Nigeria.
 
Enquiries  made at the CRFFN showed that five freight forwarding Associations were fully recognized and registered by the industry’s regulatory body.
 
They include Association of Nigerian Licensed Customs Agents(ANLCA), National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), National Association of Government Approved Freight Forwarders (NAGAFF), National Association of Freight Forwarders and Consolidators(NAFFAC) and Association of Registered Freight Forwarders of Nigeria(AREFF).
APFFLON was conspicuously missing on the registration book of the CRFFN.
It was gathered that attempts by the association to get registered with CRFFN over the years have failed due to the yarning gaps discovered in the registration requirements presented by the association.
To put it bluntly and succinctly, APFFLON is not a registered freight forwarding group with the CRFFN but has continued to operate in breach of the statutory requirements of the regulatory agency.
This make its operations illegal and contrary to the provisions of the law establishing CRFFN.
Curiously, the unregistered body has been more vocal and hysterical about issues and events in the industry.
Sources claimed that the leadership of the group have become frustrated by their series of failed attempts to get registered with the CRFFN, hence the determination and resolve to oppose anything that other registered associations agreed on.
On several occasions, APFFLON has make it a duty to work at cross purposes with other registered associations in its bid to vent its frustration of not being registered and forcefully thrust itself into reckoning.
A case in point is the controversial tariff hike by the West African Containers Terminal(WACT), Onne.
Following the orchestrated opposition to the increment spearheaded by APFFLON, the Nigerian Shippers’ Council came out with an official reaction to the development.
According to the industry’s economic regulator, based on its interaction with the Onne terminal operator, all the relevant stakeholders, especially the freight forwarders through their associations, were adequately  consulted and sensitised over the tariff increase.
Associations like ANLCA,NAGAFF, AREFF ,ARFFN and Council of Managing Directors of Licensed Customs Agents were all consulted.
Despite the status of APFFLON as non- registered association, the management of WACT still reached out to the group to get an introductory letter from CRFFN, as a regulatory agency, in order to be part of the engagement process.
However, APFFLON could not muster enough courage to approach CRFFN for such referral.
On what basis?
Rather than acknowledge its shortcomings and eat the humble pie, APFFLON went to town with wrong narratives to deceive the freight forwarding community and whip up public sentiments against the Shippers’ Council and WACT, saying the group was not invited to be part of the engagement process.
“According to WACT, prior to the implementation of the new tariff structure, WACT engaged extensively
with the leadership of registered clearing agents in Onne, including the Association of Nigerian Licensed Customs Agents (ANLCA), the National Association of Government Approved Freight Forwarders (NAGAFF), the
Association of Registered Freight Forwarders of Nigeria (ARFFN), and the National Council of Managing Directors of Licensed Customs Agents.”
“The discussions led to a mutual agreement that the implementation would be phased to ease the impact on port users” explained the NSC.
“According to WACT,  APFFLON has, for two years,failed to obtain an introductory letter from the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), which is a prerequisite for recognition as an agent.
“As such, their inability to participate in the stakeholder engagement process was due to their own non-compliance with regulatory requirements and not an act of exclusion by WACT” the Council further disclosed.
Despite this clarification made by the Council, APFFLON continued with its propaganda to twist the narrative and distort facts surrounding the issue.
Like a bull in the China’s shop, APFFLON has continued to use the media to bully the NSC, further exposing its frustration for not being factored in by WACT in the negotiation and engagement process.
Rather that dissipate its lean resources on an inordinate campaign of calumny against the industry’s regulatory agency, APFFLON should focus its energy on how to perfect its flawed registration with the CRFFN so that its voice could be respected and action legal in the eye of the law.
Even though there is freedom of association as enshrined in the Nigerian constitution, the premise on which the group normally bases its instrusive activities, it however doesn’t distract from the fact that the association is acting in the breach of the industry law as enshrined in CRFFN provisions.
Before APFFLON perfects its registration with the regulatory agency in the freight forwarding industry, its action will continue to attract opprobrium
from deserning industry operators who regard its confrontational approach to issues as a sign of frustration and an act of clout- chasing to curry government recognition and patronage.
 
 
 
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Freight Monitor

Ozo Chukwurah preaches peace in ANLCA 

— praises efforts of Emenike, Farinto, Ipariola, Abdullaziz, Oforbike , Obiora,Okafor in keeping ANLCA together.

— crowns Wale Cole the new ‘governor’ of Tin Can chapter
Funso OLOJO
In what appears to the a new dawn of peace in the Association of Nigerian Licensed Customs Agents(ANLCA), the erswhile Vice- Chairman of the Board of Trustees of the Association, Prince Ozo Chukwurah, have praised the current sanity in the hitherto polarized freight forwarders union.
Prince Chukwurah, in an exclusive interview with our reporter, eulogized the efforts of certain individuals for their efforts , commitment and sacrifice that have resulted to the present peace in the ANLCA.
Specifically, he singled out the National President of the association, Mr Nwokeji Emenike for his exemplary leadership,acumen and political sagacity in bringing back the ANLCA from the precipice.
The former Chairman of the Western Zone of the association also praised the sacrifices of Kayode Farinto,the former Acting National President of ANLCA, Alhaji Mukaila Abdullaziz, the former Secretary and later Sole Administrator of the Association, Mr Eniola Ipariola  (Anyman), John Oforbike and Obiora Elochukwu which he said has helped to heal the wound inflicted by the years of intractable crisis which rocked the ANLCA to its foundation.
He also shared a kind word for Mr Dennis Oka for(Akataka).
” I want to congratulate Emenike Nwokeji, the National President for keeping the ANLCA together.
” He met a disunited and divided association from the BOT to all the members.
” He was able to stand and weathered the storm and restore peace and harmony to the association.
” I salute his courage and leadership qualities.
” My special recognition to some individuals for their roles in making ANLCA great again.
” In our BOT election, some of these people were humiliated, disenfranchised, yet they stayed in the association.
” People like Kayode Farinto, Eniola Ipariola (Anyman), Mukaila Abdullaziz.
Despite the treatment meted out to them, they still remain in the association,
I salute their sacrifice.
” I must not fail to mention the role of John Oforbike for being strong and steadfast in his love and commitment to ANLCA
” I will also like to recognize an independent mind, a strong but highly underrated individual in the person of Obiora Elochukwu, the present of Chairman of the Association Electorial Commission(ASECO).
” He surprised and exceeded the expectations of everyone in his handling of the chapter elections.
” He should be allowed to conclude the Apapa chapter elections.”
” My greatest and highest recognition goes to Prince Wale Cole, the elected chairman of the Tin Can Island chapter.
” I hereby relinquishes my title” the Governor ” and given it to Prince Wale Cole.
” Henceforth, he is to be known and referred to as the ” Governor” of Tin Can Island chapter of ANLCA.
” He is the new Sheriff in town.
On the conduct of the chapter elections  and his expectations, Prince Ozo Chukwura said;
” Am appealing to the Board of Trustees (BOT) and all ANLCA members to allow and support Obiora Elochukwu ( ASECO Chairman) to finish his work.
“Because further crisis in ANLCA will never help anybody. But, most sincerely, I will also congratulate my big brothers, Chief Henry Njoku and Sir Ernest Elochukwu, while appealing to them to put their differences aside , so that ANLCA will rise more than it is now. Congratulations to all those who love ANLCA.”
On why he has decided to congratulate all this people and the conduct of the election having being a leader from the other faction, he said,
” From the time of Kamba, we have been having divided interests, even in your family, but that doesn’t remove you from the family.
“Interest will never die, but human beings will come and go. Some names are no more heard in ANLCA today, but those who are in the association today will fight to make same ANLCA remain one”.
Ozo also spoke on why he decided to hand over his title as ” Governor ” of Tin Can after over 20 years since he left office in 1999 and his expectations from Wale Cole as the new ” Governor” of Tin Can Chapter.
” I won the  first election at Tin Can Island Chapter in 1999, people came together and gave me the title the “Governor of Tin Can”.
“I did not give it to myself , they gave it to me as a nickname, they felt then that I have the capacity to govern that big port of Tin Can.
“When Tin Can, Brawal, SCOA, SIFAX , PTML, all of them were under Tin Can”.
Why he decided to hand over the title to Wale Cole, after  many Chairmen have come and gone- Ozo Chukwura said:
 “They all came in their own different ways and styles. Dr Kayode Farinto came, a highly educated individual in ANLCA.
“Oyinola came with his own style, but this young man , Wale Cole , came like a Tsunami, that nobody could resist.
“Wale Cole came with a Tsunami that nobody could win him in Tin Can.
” That was how Prince Ozo Chukwura came in 1998, won the election with Tsunami, which I relinquished it to Olatunde, who later supported me to win again in 1999.
” It was the way and manner I collected the key to Tin Can that Prince Taiye Oyeniyi was holding and Oye supported me, that is when they gave me the title ” Governor of Tin Can”.
” Now that Wale Cole came with too much strength, he did not collect the key from me , because am no longer in office, he bulldozed his way and won the chapter election at Tin Can, he is now the new “Governor ” of Tin Can Island Chapter of ANLCA.
On his expectations from Wale Cole, haven’t regarded him as his political godson, Ozo declared
” He should always maintain peace and unity in ANLCA, not to see himself as a tin god , but to be humble.
“So long God has given me a second chance to be alive  , I will continue to advice him. I have absolute confidence in him.”
Finally, Ozo Chukwura message to stakeholders to support Wale Cole and ANLCA to succeed, he said
” Many things happens in government. The way it is now is not they way it was then. I will advise him to work , more especially collaboration with NAGAFF people and give due respect to all the executives of NAGAFF, while I will beg them to reciprocate.
” Though, no organize competition, but there are individuals interests ” Prince Ozo Chukwurah concluded.
The ANLCA has been embroiled in an intractable crisis for over five years which the present NECOM inherited.
The crises rocked the association to its very foundation and threatened its existence.
But the recent happenings invite association suggest that peace and sanity is gradually creeping into the association being touted as the oldest and largest freight forwarders association in the country.
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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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