NAGAFF bemoans Nigeria's wasting opportunities in Maritime industry

NAGAFF bemoans Nigeria’s wasting opportunities in Maritime industry

…As Aniebonam harps on need to protect importers’ cargoes!***

The Founder, National Association of Government Approved Freight Forwarders (NAGAFF), Dr. Boniface Aniebonam on Wednesday bemoaned the huge losses the country was incurring, alongside the opportunities being wasted, because of observed institutional shortcomings.

Dr. Aniebonam made the observation during a news briefing in Apapa, Lagos, taking cursory look at the incessant increase in different charges, the non-refund of container deposit fees and the policy of cargo freighting on Free On Board (FOB) basis amongst others.

The revered maritime industry operator blamed the lapses for skyrocketing cost of cargo clearance, stressing that is presently nobody in place, to control shipping companies and terminals operators.

‘’Nobody is regulating terminals operators and shipping companies as they increase their charges despite the Nigerian Shippers’ Council is in place’’, he observed, even as he blamed freight forwarders on non-compliance with the extant Customs laws on import and export as being the bane of incessant seizures of cargoes by the Federal Operations Unit of the Nigeria Customs Service.

‘’It hurts when you see dutiable cargo seized by the customs. This calls for concern; we need to protect the business of our principals by ensuring that we make genuine declaration.

“Wrong documentation is a very serious issue; freight forwarders have to stop this. We need to sensitize our fellow freight forwarders to do the right thing.’’

Dr. Aniebonam indicated that though the NAGAFF was currently in court with the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), so as to determine the actual status of CRFFN, whether as a government agency or private concern, the freight forwarders’ body was nonetheless in total support of the CRFFN collection of Professional Operating Fees (POF).

‘’We are in support of CRFFN, and there is no going back on the collection of POF. We need it to increase capacity building of professionals with POF’’ he said, assuring that the case would not in any way, jeopardize the collection of POF.

‘’I want to say that CRFFN is not a government agency and we in court to determine this. We shall pursue the case to the appeal level. Our action is a friendly one,’’ he said.

He however called for stronger collaboration between Nigeria Customs Service and CRFFN to sanitise license registration and stop irregularities in cargo clearance. ‘

“This collaboration will increase productivities and revenue, and therefore should be done as fast as possible”, he further posited, saying he looks “forward to it.’’

He was particularly concerned that the Lagos ports were largely stressed.

“The Port is the gateway to the country’s economy. We all know over the years, far back as 1976, the port has been going through a lot; cargo traffic had increased. It appears that we are not doing much to check the free flow of cargo. At the moment, we will all agree with me that the port is stressed and it means that we are looking at the issue of congestion.

The NAGAFF Founder, Dr. Boniface Aniebonam (middle) flanked by Group chieftains on Wednesday, during the media briefing in Lagos

 

“Congestion carries a lot in terms of the country’s economy. It is when the inflow of cargo into the port arena is more than the ones going out. There are things we are suppose to be doing to ensure that there’s a balance of cargo movement, in flow and out flow so that the port can be free.

“Looking at the shipping companies, the Terminal Operators in terms of jetty, it appears nobody is regulating them despite the effort of the Nigerian Shippers Council as a commercial regulator and advisor capacity.

“Aside from the loss we are incurring, and matters of freight rate, we also know that cargoes coming into Nigeria are on Cost Insurance Freight.

“We also know that cargo leaving this country is on Free On Board (FOB) value. It means we are not gaining on freight. We can see the amount of  money this country is losing.

“However, there is hope from what one could see from NIMASA who is making effort wherein the indeginious operators can be called, and it is also commendable for government to begin to look at that side.

“On the issue of international trade, people keep talking about diversion of cargo. Cargo has a destination, and the importer has the right to decide on the port he or she wants it to go.

“The present problem in the port has to do with level of complaiance to import regulations and the consequences is better imagined, particularly on matters that has to do with Custom regulations.

“On the part of freight forwarding association, and all other stakeholders, there is a need for us to educate and inform all practitioners.

“Compliance is the key word. You have to safeguard the cargo of your principal. Practitioners must understand that their primary function is to protect your principal as a professional and therefore the need to make honest declaration for custom purpose cannot be over emphasised. That will automatically safeguard your principal, from the Customs, especially when they are dutiable goods”

Also read:  CRFFN Registrar eyes N5bn annually, through POF regime

Aniebonam harped on knowledge and the skill for sound documentations. “It is a very serious issue because if you make wrong documentation, that means you are putting the cargo in danger. It has to do with the discretion of the Nigerian Custom Service  looking at section 27 and 28 on matters of important documentation for Customs.

“We all know that the boarder has been shut down for sometime; we know the importance of that.

“We cannot sustain our lives by giving bribe to the port operators, because it has to do with lack of knowledge. And it is our responsibility to train the young freight forwarders so that they can understand the language of the customs.

“Ordinarily, we all know that section 19a and b of the Customs law, gives the customs the authority to direction on where a cargo should go or where it shouldn’t go for custom purpose.

“Government should take a second look and increase their engagement with other other countries with the look of opening the boarder as fast as possible.

“On the issue of Council of Regulatory of Freight Forwarding in Nigeria(CRFFN), it’s not a government agency by the act that established it, we are not relenting, and we will take the matter to supreme court till we get it right.

“Other issues has to do with members of NAGAFF that are still in appeal court. It’s a friendly action in court to protect our council. And we are in appeal court so that matters can get resolved.

“Our lawyer has written an extensive document and it’s been circulated at the national assembly. I’m sure that when the public hearing comes again for the Amendment, they will utilise it.

“We are asking the Government to fast foward the engagement in the port; and we also look forward to seeing the Customs and CRFFN entering into a strategic partnership, with the view of effectively, increasing productivity”-Boniface further said.

 

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