Revised Procedure for Agro Export Industry: NPA Debunks Truckers Claim of suffocating Industry
...Unions Seek litigation
ZAINAB JUNAID
Just as the Association of West African Exporters and Maritime Professionals (AWAEMAP) and the Council of Maritime Transport Unions and Associations (COMTUA), concluded plan to take management of Nigerian Port Authority (NPA) to court over the recently licensed five exporting warehouses and the revised policy for processing Agro export truck to Port which they saw as an alleged plot by the authority to suffocate the industry, NPA management has debunked the Associations allegations.
The Nigerian Port Authority declared that the newly revised policy only sent jitters to middle men and those who have hitherto hijacked an important aspect of the export value chain, operating from non verifiable locations & expecting to be allowed to access the ports from those locations and who are not prepared for more visibility and accountability without a fight including blackmail is the reason for overheating the Eco system.
Responding to the allegations put forward by AWAEMAP and COMTUA in a telephone chat with our Reporter, Mrs Josephine Moltok in a document "UNDERSTANDING THE DEPLOYMENT OF EXPORT PROCESSING TERMINALS FOR EXPEDIENT LOGISTICS HANDLING FOR EXPORT CARGOES" made available to our reporter, partly reads that, the policy being a new initiative, may experience some challenges but the Authority is in continuous stakeholders’ engagement to allow for familiarization with the policy and for genuine exporters, while there are temporary teething problems that would soon be overcome, the EPTs represents a major leap and improvement both procedurally and cost wise.
AWAEMAP and COMTUA earlier accused the Managing Director of the authority, Mr. Bello Koko of plotting to stifle the Nigerian Export Industry with the establishment of the five terminals rather than facilitating export as claimed.
At a National media charts jointly organised by the associations in Lagos recently, AWAEMAP Chairman, Mr. Olubunmi Olumekun, stated that NPA's revised policy compromised the realities in the system it pretends to assist.
To Olumekun, "the resolution to introduce a new Standard Operating System by the authority which establishes a One Stop Shop Terminal for Agro- Export Containers referred to as 'Domestic Export Warehouse' (DEW) would have been applauded by the unions if such decision was made to ensure the new warehouses complement the already existing over 200 customs licensed warehouses scattered all over the country. Rather the decision is to refuse entry into the Nigerian ports all over the country any Agro- Export bound container that has not made use of these established warehouses."
He decried that the actions of the NPA in designating these few warehouses as the only Warehouses where export bound containers could be accepted for gating-in is in direct contravention of the Customs and Excise Management Act CAP 84 Laws of the Federation of Nigeria 1990 ('the Customs Act") especially Part IV, Section 82 which clearly makes provisions for the use of licensed warehouses including private warehouses for the purpose of processing export bound goods.
"However, we have written letter to NPA and office of the Vice President to notify them of the danger at stake, only office of the vice president responded to our letter and we have decided to go to court and infact we have been given date," he explained.
Alhaji Inaolaji Nofiu Liadi, CEO Harlink Investment Limited on his part narrated his ordeal with the authority and also maintained that the new plan negates Customs and Excise Management Act and does not in anyway agree with the Nigerian Export Promotion Council's DEW.
National President of COMTUA, Comrade Adeyinka Aroyewun, also buttress this argument by affirming that the decision was planned by the MD of NPA as a pension plan to ensure he continues to enrich himself especially after his tenure at the helms of the NPA comes to an end.
Aroyewun argued that the revised procedure for processing agro export truck to port was carried out within short period without proper and due consultations with genuine stakeholders.
"Continous misrepresentation of genuine stakeholders by Pseudo Truckers is a ploy to get endorsement through the backdoor for an inappropriate policy and this has affected negatively, the outcome of most NPA policies concerning trucking activities, Aroyewun added.
The Union went further that with the revised policy, exporters would be forced to pay for: Handling Charge, Weighbridge, Documentation charge, Examination Position Fee, Trucking to Port & Storage Charges cumulatively amounting to about $650 extra charges per container box. It is instructive to state that all these charges listed would have been incurred by exporters prior to accessing this DEW which invariable leads to double expenditure for exporters.
"Currently, Agro-Export containers departing from neighboring countries like Republic of Benin come at a cost of minimum $200 cheaper than exporting same value Agro export container box from any port within Nigeria due to the numerous regulatory and logistics challenges bedeviling our maritime export industry. Our members are already finding it hard to survive competing with our neighboring countries, this move by the Mr. Bello-Koko would force most Nigerian exporters to begin to channel our export produces through these neighboring countries. It is imperative at this juncture to bring to the attention of the general public the actions of this public servant, as the ripple effect of this policy would cut across all spheres of the Nigerian economy," the union had said.
However, when contacted, spokesperson for the Nigerian Port Authority, Josephine Moltok, made a document available to our reporter which partly reads that before the establishment of the five terminals, a joint newspaper advertorial for Expression of Interest for The Certification of Export Processing Terminals to Service Lagos Port Complex and Tin Can Island Port Complex vide Public Notice No. 4152 by the Nigerian Ports Authority and the Nigerian Export Promotion Council was released on Monday 26th April 2021 and closed on Monday 24th May, 2021
"The central focus of management action in this regard was to position the Nigerian Ports Authority as the gateway to the economy to play a pivotal role in ensuring export expansion and development through the seaports.
"NPA interest to increase local capacity and participation in Nigerian export business was central both in consideration and certification of the Export Processing Terminals.
"The EPTs initiative was to insulate the export logistics processes from the hinderances to clearance and documentation of cargo for shipment at the main ports as well as to ensure that the degradation of the value of Nigerian Export due to lengthy logistics procedure and waiting time was eliminated.
"A total of twenty-seven (27) facilities were inspected by the approved Inspection Committee comprising of Nigerian Ports Authority, Nigerian Export Promotion Council (NEPC) and Lagos State Government (LASG, for Lagos State Locations only), following which seventeen (17) were prequalified, out of which only ten (10) companies met the qualification threshold.
Of these ten (10), only five (5) are currently ready and operational.
"The introduction of EPTs is the Authority’s response to the Presidential Executive Order 001 over the complaints of the exporters particularly Agro products exporters of degradation of their products before it gets to the port of destination due to hectic and lengthy logistics stay at the port corridor.
"Our desire is to achieve a timely and predictable logistics processes for export as a boost to the economic diversification programme of the Federal Government."
The document further read that NPA is not unaware of concerns raised lately ; while EPTs are expected to charge for services and use of their facilities as venture capitalists, the Authority ensures those charges are not replicated inside the port as the container arrives for shipment. Indeed an internal review shows that the charges when juxtaposed with the overall experience of exporters before the deployment of the electronic call up system when export boxes are held up along the port corridor in the gridlock for days and weeks, the charges pales into insignificance.
"On the capacity of the number of export terminals approved to commence operations, the Nigerian Ports Authority is constantly monitoring and will increase the number of EPTs to match the growth in number of export boxes should the need arise," the document reads.
It is a known fact that the Nigerian Ports Authority (NPA) gave five private sector firms operating licences to run terminals solely dedicated to processing export containers bound for ports in Lagos, Apapa and Tin-Can Island, six months ago.
The five terminals are Diamondstar Port & Terminals Ltd, Ijora; Esslibra Terminal in Ikorodu; Sundial Global Trade & Service Ltd in Kirikiri; Bellington Cargo Ltd in Okokomaiko; and Tenzik Energy Ltd in Kirikiri Lighter Term.
