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Business News of Friday, 6 August 2021

Source: tribuneonlineng.com

'Customs inefficiency behind Nigeria’s revenue, cargo losses' - Saraki laments

Minister of State for Transportation, Senator Gbemisola Saraki Minister of State for Transportation, Senator Gbemisola Saraki

The Minister of State for Transportation, Senator Gbemisola Saraki has blamed the inefficiency of the Nigeria Customs Service (NCS) for Nigeria’s loss of cargoes and accruable revenue to ports of neighbouring countries. This is even as she disclosed that the maritime sector alone if fully harnessed, can single-handedly finance Nigeria’s budget.

Speaking during the ongoing Second Phase of the 2020 Ministerial Retreat organised by the Federal Ministry of Transportation in Lagos (which ends today, Friday), Gbemisola Saraki lamented that the Customs inability to automate its operations has led to manual inspection of cargoes at the nation’s ports over the years, a development that has brought delays and other issues that are inimical to trade facilitation to Nigerian port system.

Saraki also said that while ports of neighbouring countries in West Africa are using scanners, the Nigeria Customs Service is still doing physical cargo examination.

According to the Minister of State for Transportation, “Recently, the Customs declared over N1trillion revenue collected within six months. The question I will like to ask is, at what cost did the Customs collect that much revenue?

“Customs has proven itself to be a hindrance to trade facilitation in Nigeria. We cannot compete because we are not efficient. While the Benin Republic and Cote ‘d’ Voire are using scanners, we’re still opening containers and doing 100 per cent examination of cargoes. This has contributed to a loss of cargoes to these neighbouring ports.”

On the Cabotage Vessel Financing Fund (CVFF), the Minister explained that there is a need to remove the impediments to the disbursement of the fund in order to enable Nigerians to own more ships. She added that the country was lagging behind in the comity of nations when it comes to shipping ownership and shipping business.

On the port access roads, Saraki explained that “There is urgent need to fix the road to boost businesses at the port and generate more revenue to revitalise the economy.

“The Electronic Call-Up system that was recently put in place has literally collapsed either due to corrupt practices or lack of enforcement by security agents.

“We need to strengthen the institutional capabilities of maritime agencies to position the country as a hub of maritime activities in West and Central Africa to boost the economy.”

The Permanent Secretary, Ministry of Transportation, Dr Magdalene Ajani, in her presentation said the Retreat was designed to provide a veritable platform for top management officials to deliberate on how to galvanize the transportation sector to meet the set goals and objectives.

“The first phase of this Retreat held in August 2019 highlighted achievable plans, initiatives and strategies expected to reposition the maritime subsector and the transportation sector as a whole for improved productivity and better performance.

“This Retreat will therefore avail us the opportunity to appraise and take stock of our achievements, identify our constraints, challenges and readjust our strategic plans with a view to enhancing our future performance.

”There is no gainsaying the fact that transportation is one of the critical factors of development at the heart of economic growth and prosperity of any nation.

”In a bid to reposition the Nigerian transportation sector for better performance and enhanced productivity, the ministry embarked on the implementation of the integrated multi-modal transportation system.

“The revitalization of policy initiatives and programmes, which are in sync with the nation’s economic development agenda and the National Integrated Infrastructure Master plan,” Ajani said.

She said that there was an opportunity for Nigeria to leverage its geographical position, its large domestic market and industrial capacity to become the transportation hub for Africa and the world as a whole.

She urged participants to use the opportunity to surpass the various deliverables and targets set up by the current Administration for its performance appraisal.

Ajani said that the present administration appraisal was related to the Medium-Term National Development Plan (2021 – 2025) and the Nigeria Agenda 2050 Plan.