Inefficiencies, Corruption In Ports Cost Nigeria N1trn Yearly- Report

Ports, Nigeria, Corruption, Delays
The report says without clear legislation, ports governance remains prone to inefficiency and corruption.

A report on the performance of Nigerian Ports has revealed that the country loses over N1 trillion every year to port inefficiencies, process failures and corruption.

The report titled ‘Nigeria: Reforming the Maritime Ports’ which was commissioned by the Centre for International Private Enterprises in collaboration with the Lagos Chamber of Commerce and Industry and Financial Derivatives Company, was publicly unveiled in Lagos on Friday at the LCCI public-private discussions on port reforms.

The report states that while the efficiency of port operations is a major driver of trade and economic activities across countries, Nigeria’s case has been rather gloomy.

It says over the years, users and operators at the Nigerian Ports have been facing lingering challenges and bottlenecks which include infrastructure shortcomings, policy and regulatory inconsistencies, overlapping functions and duplicity of roles among government agencies operating within ports across the country.

The report also pointed out that a lack of clear legislation, ports governance remains prone to inefficiency and corruption. It added that under such condition, companies in the Nigerian ports have to deal with bureaucratic red tape, constant delays, high costs, harassment, and demands for illegal
charges.

Losing Money And Potential

Estimates from the research show that trillions of Naira in revenue is lost annually within the ports and business community due to inefficiencies and inherent shortcomings.

The report also stated that these inadequacies at the ports diminish their potential to create about 10,000 new jobs annually and about 800,000 jobs on the long run.

Ports, Nigeria, Reforms
Multiplicity of security agencies add to the already high costs of doing business at the Nigerian ports.

The Issues

The Nigeria: Reforming the Maritime Ports report claimed that Nigerian seaports remain the most expensive in the West African sub-region attributing this to the cumbersome documentation requirements and double charges imposed
on importers and exporters.

Using a semi-structured survey, respondents of the study listed the documentation processes, requiring 25-33 different papers from
multiple agencies as the biggest issue contributing to time and cost delays at Nigeria’s seaports.

About one-fourth of the respondents also complained about the duplication of functions of the multiple agencies within the ports while 29% of those surveyed in the report say multiple cargo inspections are the most critical of operational bottlenecks.

port-2
An overview of the issues identified

 

Not All Doom

It is not all doom for the industry according to the report.

It stated that Nigeria’s ports continue to see substantial increment in gross tonnage by 3.3% – Compounded Annual Growth Rate – to 144.2 million tons between 2010 and 2015.

The annual growth rate of 1.8% is expected to rise until 2021 despite the challenges in the sector.

However, these growth projections are premised on the assumption that the nation’s ports will continue to be the preferred means of transporting goods in and out of the ECOWAS sub-region.

 

Call For Immediate Port Reforms

In its recommendations, the report pointed out that authorities should embark on immediate port reforms.

These reforms are expected to lead to faster clearance of goods, shorter waiting times for ships awaiting berth, eliminating redundancies in the functions of the several regulatory government agencies in the ports.

It also called for the adoption of an Integrated Advance Cargo and
customs clearance system, with scanning, sealing and tracking (SST)
capabilities, establishment  of a National Trade Data Centre and implementation of a Single Window Platform.

The report also called for more private sector investment in Nigerian Ports, reduction in the number of government agencies to 6 from 14.

From the policy end of things, report called for the immediate passage of certain legislative bills that will aid port reforms and improve performance.

These bill include the National Transport Bill and the Port and Harbour Bill (PHB).

BOI Promises To Assist Local Entrepreneurs

BOIThe Managing Director of the Bank of Industry (BOI), Mr Rasheed Olaoluwa, has promised to help local entrepreneurs acquire technical innovation skills which is needed for the development of the small and medium enterprise sector.

Mr Olaoluwa said that the bank would achieve this through collaboration with government agencies whose duties are focused on producing standard technological machines and devices.

These are locally manufactured tricycles, solar panels, boreholes and grinding machines constructed by officials of the National Agency for Science‎ and Engineering Infrastructure (NASENI).

The Executive Secretary of the National Agency for Science and Engineering Infrastructure, Mr Mohammed Haruna, appealed for more patronage of its products, which according to him is the way to assist the agency in achieving it’s mandate of providing services needed for the nation’s technology advancement.

The efforts to make Nigerian entrepreneurs innovative did not stop at the National Agency for Science and Engineering Infrastructure, as officials of the banking industry also met with officials of the National Office for Technology Acquisition in order to seek for areas of collaboration.

While this could be an indication that better time awaits owners of small businesses in Nigeria, many citizens would hope to see the agreements reached at the event put into action.

UN Urges Heads Of Government To Promote Equal Rights

Human-Rights-DayThe United Nations (UN) has reiterated the need for heads of government to promote equal rights.

The UN Resident Coordinator in Nigeria, Mr Dauda Toure, gave the message in Abuja on Wednesday, as Nigeria joins the rest of the world to observe the International Human Rights Day.

At an event organised to mark the Human Rights Day,  Mister Toure says arbitrary arrests and detention by government agencies is a gross violation of human rights.

He advised government agencies to respect peoples’ rights at all times.

The Head of the European delegation to Nigeria, Michel Arrion, also called for the abrogation of death penalty just as the US Ambassador to Nigeria, James Entwistle, appealed for the protection of peoples rights.

For the Executive Secretary of the National Human Rights Commission (NHRC) and the Chairman of the Governing Council of the Human Rights body, Professor Chidi Odinkalu, the issue of insurgency remained a major rights violation.

The chairman, NHRC Governing council emphasised that the UN General Assembly in 1950 proclaimed December 10 as Human Rights Day to bring to the attention of the peoples of the world the need for rights of individuals to be upheld  and respected.

The International Human Rights Day honours and affirms the activities of all persons around the world aimed At bringing to an end discrimination in any shape or Form.