Structure tariffs to stimulate Competition, growth – Ihenacho, others urge Gov’t

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Capt. Emmanuel Iheanacho

…As UN labour body counts 164 million migrants among global workforce***

The Chairman, Genesis Worldwide Shipping, Capt. Emmanuel Ihenacho advised on Wednesday, the need to ensure that Tariff and Rate on cargo clearance are necessarily structured to create proper competition, for greater efficiency in the maritime industry.

Ihenacho indicated this, alongside other experts during the Maritime Business Round Table Breakfast Meeting, organised by ZOE Maritime Resources Ltd, on “Tariffs and Rates As Stimulants of Growth for the Nigerian Economy” held in Lagos.

Ihenacho posited that, in business, one incurs cost to deliver goods and make profit; while tariff belongs to different categories in international trade chain.

“Tariff is usually designed by government to achieve certain purposes. Sometimes, tariffs are applied on imported goods to encourage local industries and create jobs.

“At the end of the day somebody has to bear the loss. it is the consumer.

“In applying a tariff, there is need for one to check the cost and benefit and strike a proper balance to enable Nigerian ports operators get what should be derived from the economy,” Ihenacho said, condemning the idea of a uniform Tariff structure, being operated by ports managers in the West and Central African Region.

He said tariff should be structured to create proper competition to enhance port efficiency.

The former Minister of the Interior, urged government agencies to ensure competition among shipping operators to make Nigerian ports remain competitive and be the preferred destination for port users.

Ihenacho called for the automation and overall improvement of ports infrastructure, stressing the need for government to make other ports functional.

Also speaking at the breakfast meeting, the Executive Secretary, Nigerian Shippers’ Council (NSC), Mr Hassan Bello, said Tariffs and Rates were the entire components of processing goods from the ports to the end users.

Bello was represented by the Director, Marketing Analysis and Tariff Administration Regulations Service of the NSCl, Mrs Margaret Ogbonna.

According to him, the country has been able to create Port Service Support Portal in collaboration with some government agencies to enable port users channel their complaints for solutions.

“The Nigerian Shippers’ Council recently carried out a road survey on Apapa port road and it was discovered that about 5,000 to 6,000 trucks patronise Apapa ports area daily, while the entire Apapa port needed only 2,500 trucks daily to take consignments out of the port.

“The 2,500 trucks needed daily include trucks for both tank farms and seaports.

“NSC had sent recommendations to the Minister of Transportation and other agencies to ensure they work on modalities to ensure port roads are accessible,” Bello said.

He emphasised the need to make Nigerian ports automated to stop the arbitrary charges, saying that Nigeria Customs Service should work towards facilitating trade rather than generating revenue to make Nigerian ports competitive.

Bello said there was need for strategic development and collaboration for good connectivity to enable goods to get to end users as fast as possible, noting that transparency should be emulated.

In her keynote address, the Lagos State Commissioner for Commerce, Industry and Cooperatives, Mrs Olayinka Oladunjoye, said tariffs and rates served as tools of revenue generation to the government.

Oladunjoye who was represented by Director of Industry, Ministry of Commerce, Mr Lekan Ogunbowale, said the maritime sector was a catalyst for the growth of the Nigerian economy.

She said the Lagos State Government continued to ensure Lagos became Africa’s model mega city, and that the government had created a business- friendly environment that would attract more private sector investments.

According to her, to facilitate the industrial development, the state government has continuously invested in infrastructure; establishment of Economic Zones, harmonised regulatory framework and taxation.

She said there was need to fully harness the vast potential in the maritime sector, pointing out that the state had an equity contribution of 20 per cent to the establishment of Lekki Deep Seaport under Public-Private Partnership.

In her welcome address, the Chairperson, ZOE Maritime Resources Ltd, Mrs Oritsematosan Edodo-Emore, said Tariffs and Rates were used by the government in many jurisdictions to advance their nation’s economic interest, protect local industries from the effects of dumping.

She said that tariffs and rates also stimulated export, generated revenue, and that Nigeria needed to understand how to use all the tools available at her disposal to advance her economic interest and develop the country.

Meanwhile, the global number of migrant workers has risen by nine per cent to 164 million within only four years, the International Labour Organisation (ILO) estimates.

“This total, which includes employed refugees, accounts for 4.7 per cent of the global workforce,’’ the UN agency said on Wednesday in Geneva.

In high-income countries, the number slightly decreased from around 112 million to around 111 million between 2013 and 2017.

According to the ILO report, migration into middle-income countries increased in this period, where a global pact to regulate migration and to protect migrant rights is set to be endorsed.

Two thirds of the world’s migrant workers live in wealthy countries, including the European Union with its borderless internal labour market.

Almost a quarter of the world’s migrant workers are in Western, Southern and Northern Europe, followed by 23 per cent in North America and 14 per cent in the Arab region.