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Tuesday, August 27, 2019

FG ORDERS SEAPORT TERMINALS’ AUDITING …as Nigeria loses N150bn annually to multiple surcharges



The Federal Government of Nigeria has on Monday ordered the Nigerian Shippers’ Council (NSC) to carry out a comprehensive audit of all seaport terminals in the country.
It also expressed dissatisfaction over the arbitrarily high shipping charges in West and Central Africa sub-region, calling for a downward review of the charges to promote trade among countries in the sub-region.
The Vice-President, Yemi Osinbajo gave the directive in Abuja at the opening session of a three-day sub-regional summit on ‘Unfair Shipping Surcharges and High Local Shipping Charges at the Ports of West and Central Africa Sub-region’ hosted by the NSC.
Osinbajo who was represented by the Minister of Transportation, Mr. Rotimi Amaechi, while telling the participants at the summit that it was necessary to check the unfair trade practices in the maritime sector, mandated the NSC to audit the seaports in order to ascertain their efficiency and competitiveness.

According to him, “The Federal Government has mandated the NSC in her capacity as the port economic regulator to carry out a comprehensive audit of all seaport terminals in Nigeria to ascertain their efficiency and competitiveness.
“Government will ensure that the outcome of the audit report will be fully implemented for improved port operation. The report of the audit will also spell out the responsibilities of terminals and the Federal Government.
“Similarly, the council is further mandated to monitor and supervise compliance to the standard operating procedures by all port agencies and port service providers for improved service delivery.”
He told participants at the summit that the government was aware of the disturbing cost of transportation of goods through the ports in the sub-region.
This, he said, was due to high freight rates and arbitrarily imposed surcharges such as Bunker Adjustment Factor, Currency Adjustment Factor, War Risk Surcharge, Congestion Surcharge, Peak Season Surcharge and Port Operation Recovery Surcharge.
Meanwhile, the Nigerian economy is losing N150bn yearly to multiple surcharges slammed on Nigeria-bound cargoes by foreign shipping companies.
This was contained in the result of a study released in Abuja on Monday, at a one-day sub-regional summit tagged, ‘Unfair Shipping Surcharges and High Local Shipping Charges at the Ports of West and Central Africa’, which was organized by the Nigerian Shippers’ Council under the auspices of the Union of African Shippers’ Council.
 The study indicated that the number of multiple surcharges on Nigeria-bound cargo and the estimated loss to the Nigerian economy due to additional ‘Local Shipping Charges’ on imports exceeded N150bn in a year.
 The surcharges were listed as bunker adjustment factor; currency adjustment factor; war risk surcharge; congestion surcharge and peak season surcharge.
 Others are extra risk insurance surcharge, freight rates surcharge and port operations recovery surcharge.
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