Comptroller Abdulkadir M. Dalhat is the Customs Area Controller Tin Can Island Command 2, Nigeria Customs Service. In this interview with Shipping Position Daily editorial team last week in Lagos, he talked about the peculiarity of the terminal and its on-going transformation.
“We are not only here for import alone, but all so for export”
Please tell us about the journey to this command and the challenges you faced initially?
When I came to this command in January 2016, I was really worried and disturbed because the terminal was like a football pitch. I started asking questions because this place is under AP Moller and AP Moller is the one feeding Apapa port. Apart from Apapa as a command, they have other dry port terminal outside Apapa and Lagos. They have in Kano, they have in the east and in fact in so many places and they are feeding those places with containers. Then I was asking myself what actually is the problem with AP Moller not even stemming a vessel to this place or simply transfer some few containers to the , so that officers can be engaged. I had to take charge and when I took over, I went through my handover note and I started with the terminal operator. I was eager to know where customs can come in, so that we can improve on what I met on ground because it was just not going to work by coming to the office and sitting down on a daily basis. The owners of the place will be stemming containers outside Lagos, why officers directly under your noise will not even get one or two containers as the case may be.
I remember that I wrote a letter to the terminal operator, we had series of meetings, discussed the challenges we are facing and why AP Moller is the terminal operator here but couldn't stem a single vessel to us. In fact there were so many issues. But, if you look at the command today, you will find out that this is the best dry port in the country, there is no dry port that is equal to this terminal. To a certain level, it is only Lillypond and KLT which I am sure you know. But when you look at the size and proximity to the road, I need not tell you anything more. If AP Moller can transfer containers from Apapa to Trade Fair complex, for instance, you consider the timing; if you close your eyes from Apapa to Trade Fair, a container to leave the terminal to get to that place takes much more hours, even it can take a whole day or two, because of the traffic situation, but despite that they still send containers to those places as against Lillypond. They told us some of the reasons and I am not a terminal operator, my own is to collect duty on containers stemmed to the terminal following all the rules and regulations surround the CEMA, extant laws, but it is not within my purview to make sure that containers get there. I don't own any ship, I am not a terminal operator, I am not an agent but the only thing I do is that I try to sensitize officers because I discover that if I have a container and I want to clear it in Lagos; the amount of money I will spend to clear that container going to Trade Fair will be two or three times higher than what you will use to clear from Lillypond terminal. So what am I supposed to do and remain in business? I should be able to carry out cost analysis to know which one is cheaper for me to go. Gradually we were able to get those points and let them see reasons that if I can spend 200 here I can also spend 700 there , so why should I waste my time or money. If your containers will take two or three days to get to your warehouses from Trade Fair then it can take two hours from here. Why do I need to waste my time and with that sensitisation made us to get all these revenue you can see.
What is so peculiar about this terminal?
As you know, the Lillypond Area Command has now been officially changed to Tin Can Island Port 2, Command, Ijora Lagos as approved by the Customs Comptroller General. Like I said earlier, this is the only command in the federation with export examination and stuffing bay.
When you look at the terminal here, this is the only terminal that has export examination bay in the whole of Zone ‘A’ of Customs, all others do outside stuffing. They stuff from Kano, Oyo, Osun, Ekiti from their own warehouse, you stock your containers there with whatever item you have and then shift to either Tin Can or Apapa because there is no export bay in those places. Here, the only thing you need for now is just to bring the item down here because the officers are on ground and in fewer hours, the documents are signed and sealed. From there, it will go from here under escort to either Tin Can or Apapa. It saves time and money because we want to utilise what the terminal is designed for. We are not only here for import alone, but all so for export. We accept import and export and when you look at the position of the government now you will find out that attention is shifting from import to export, because we need the hard currency, we are not comfortable with the import, we equally want to export.
Are there facilities at this terminal to boost export in other to meet the required standard, considering what happened recently when a container loaded with beans was returned back to Nigeria?
There is a standard format for packaging and that is Nigerian’s problem, but hopefully with Standard Organisation of Nigeria in place, they are now working hard because.
Nigeria’s exports are one of the best products needed overseas, but the issue is how we package them and that is why we need a lot of sensitisation and enlightenment to make people come to terms with packaging, so that at the end of the day it will be easier and simpler for the shipper to do that. Packaging has led to banning of so many Nigerian products and issues like that need to be addressed and I think the export unit is really working hard to come out with a blueprint of the best ways out to package our export items. We don't really lay emphasis on packaging, we don't really care about it what we are concern about is to do the item sharp-sharp without putting into consideration the standards required internationally. There is no way you package something all by yourself and say it is good then send it abroad, if the packaging is not good then they will automatically return it back because it will affect the quality of whatever you are exporting; once the packaging is not done properly because of the time frame it will take to reach the destination, it might be a bad business. Once it is not properly packed, definitely such will be returned back to Nigeria.
How has issues with the exchange rate affected you command in its revenue collection drive?
Definitely the hike in exchange rate has seriously affected everything; not only in customs, but every business sector in Nigeria. But the issue you know is that customs is simply a policy implementer and really we don't formulate policies. It is the government that comes out with fiscal policy measures at the end of every financial year; immediately the budget is announced and ours is merely at the implementation stage and the CGC has directed that we implement all policies fully, therefore if there is anything to do; it is to make sure that those policies are implemented. The situation is out of customs control, rather it is the CBN that is in charge and if anybody has a challenge I will advise him to better channel it to the Federal Ministry of Finance or go to the Customs headquarters; because we don't fix rate here.
So, how is the command faring in the area of revenue collection?
Despite lack of stemming of vessels and container transfers by the terminal operators, the command collected almost N4billion, in the first and second quarter 2016.
The command can only meet its target when vessels are stemmed to the dry port or containers are transferred from the mother port. The command is basically a dry port and as such, depends solely on transfers.
In January, we collected N349,075,728.00; in in February, N695,488,789.000 was collected, the March figure stood at N245,151,966.00 while in April N461,870,060.00 was collected as revenue.
What is the relationship between the command with other agencies of government and the associations of clearing agents?
When I came in, I discovered that there is a cordial relationship in existence, so I just tried to consolidate on that one by holding series of meetings, one of which holds at the end of every months; it is called stakeholders’ meeting. We use that platform to address issues raised by the operators, because whatever happens here at the terminal it is me that people will ask and I am like a father to everybody here and whether I like you or not I just have to work with you. There is nothing as good as being open minded with the people you are dealing with, because the job must be done and we are all here to serve one purpose. The Police, DSS have their own role to play but the customs; we are here to collect revenue into federation account. We have no option than to cooperate with other agencies of government. As for the customs agents here, I understand that they have associations; it’s a kind of umbrella body of all customs agents which everybody must belong to and it’s easier to get in touch with them through their executives. We try to establish that good relationship with them and one good thing is that when I came here I met them on ground and appealed to them to forward their problems because they spend money to renew their licenses; you maintain your offices and staff etc. In fact the way the agents listen to customs is quite different from the way they listen to terminal operators, because I have closer ties with them than the terminal operator.
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