The Lagos Chamber of Commerce and Industry (LCCI), the Manufacturers Association of Nigeria (MAN) freight forwarders as well as importers in the maritime Industry have lamented the negative impact of the COVID-19 Pandemic in the maritime industry.
Both the LLCCI and MAN expressed worries that the government has lost several billions of naira which could have been used to develop the nation since the outbreak of the pandemic in the country.
The Director General of LCCI; Dr Muda Yusuf in a chat with Shipping Position Daily stated that, with about 65 to 70 percent of the country import coming from China, several billions must have been lost which could be difficult to regain in few years.
According to him: “The pandemic has really affected every section of the maritime industry, from the importers to the freight forwarders and the terminal operators and other people attached to the logistic chain of driving the economy in the maritime industry. I may not be able to give an exact amount of how much must have been lost, but what I can tell you is that the industry has lost money running into several billions of naira.
“You are aware that about 60 to 70 percent of our import comes from China, and of course with that, you can actually look at how much must have been lost in the industry, so it has affected every sector even the logistic chain of the industry”.
And while expressing fears of the negative impact of the COVID -19 pandemic in the industry, especially as it concerns the manufacturers, the Manufacturers Association of Nigeria urged the Federal Government to urgently declare a state of emergency in the manufacturing sector and immediately place the sector on an integrated policy ventilator through the provision of a comprehensive support systems and stimulus packages to swiftly return the sector to the path of sustained production.
According to a report made available to our correspondent by the Corporate Communication Manager of MAN, Mrs. Tayo Okewunmi, titled MAN CEOs Confidence Index (MCCI), the group further said with the radical drop in the price of crude oil, coupled with the outbreak of the pandemic which has significantly impacted on all facets of the World’s economy, it has been pretty difficult to source forex from all the available windows.
The MAN further lamented that asides the confrontation of the pandemic, the persistent traffic gridlock in the approaches to the country’s port facilities and perennial congestion have remained a recurring decimal, leading to delay in clearance of manufacturing inputs and machinery as well as high demurrage which increases the cost of production in the sector.
The association said most worrisome are the issues of deliberate delay in cargo clearing time, raising of technical barriers, rejection of relevant documents by officers of the agency that approved import documents, multiple agencies with duplicated functions and other rent seeking activities of vested interests at the port that excessively fleece operators.
While urging the government to urgently conduct a comprehensive review of all the contributory factors and consciously implement ongoing reforms in a manner that all port-related challenges that seemingly appears to have defied all solutions are permanently resolved.
Lamenting also, the Vice President of the Association of the Nigeria Licensed Customs Agents (ANLCA) Mr. Kayode Farinto said over N500 billion naira have been lost in the industry in the last two months, expressing worry that the COVID 19 pandemic may lead to about 35percent of work force losing their jobs, post-COVID 19.
“We have lost a lot of money, because the import from china stopped and about 65 percent of our imports comes from china so it has reduce our level of importation by 65percent. So the import is nose diving and unfortunately there is no encouragement from the government because the implementation of free waiver and storage fee is zero, we have a situation now where our importers believes that we are thieves saying after all the government said they should waive storage. We have lost a lot of money that can’t be less than N500 billion in the last two month.
“And am also seeing a situation where the work force in the maritime industry may reduce by 35 percent, I have spoken to about four five shipping companies and they said 50 percent of their workforce have been asked to stay at home in line with the guidelines of the Covid 19 pandemic, and some of them actually said they don’t know they can work with 50 percent work force meaning that Post COVID 19 a lot of people will lose their job” he said.
Speaking also to our correspondent the Chairman Board of Trustees, Fashion Wear Dealers Association, Lagos State, Chief Mezie Okwuosa said importers have been at the receiving end of the pandemic
According to him “The whole world is calculating what they have lost and they are still losing, there is no sector that does not record heavy lost as regards to this virus but mostly importers are at the receiving end, the loss cannot be quantified and the lost is just about to start.
“Also note that most big time businessmen live on assistance from the financial institutions. The major victims now are the people that have financial commitment with their sponsors, will the bank insist on the earlier conditions before giving the loan or will they consider the people?
“Because look at it now, for an importer who has a daily routine turnover of about N100, 0000 to N2million daily before going into the business. Now the person has stayed 6 weeks out of business and now they only operate six hours in a day and three times a week within those six hours and there is strict compliance in the market what will such person do” he said.
Speaking also, the chairman of Alaba International Market Association (Electronics) Mr. Paulinus Ugochukwu said since the lockdown he has lost several millions of naira, stating that many importers are already out of business.
“I am dealing with musical instruments and now they have closed everywhere, the Churches, hotels, clubs, and Mosques amongst others everything that deals with musical instruments are closed there is no business for us now, we are out of business” he said.
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