The Shippers’ Association of Lagos (SAL) has condemned the recent increase in the exchange rate of the Naira for cargo clearance, stating that the increase violates economic decency.
In a statement made available to our correspondent, the chairman of the association; Rev. Jonathan Nicol said the increase will induce shortage of cargo as time goes on, adding that the increase is already reflecting on the economy.
Nicol explained that industries, importers and exporters will have to source for additional funds to clear their cargo trapped in the ports due to the Coronavirus pandemic under the one month stay at home order of the Federal Government which variably means all goods in the ports will now attract the new rate.
He further stated that the new rate does not reflect on the Form ‘M’s that are already approved by the Central Bank, stating that it is the approved rate on Form ‘M’ that is used to procure foreign exchange for each shipment and also effect transfers to suppliers.
He said this simply means that the excess fund being raised through Customs have no bearing.
He urged the CBN to support entrepreneurs through flexible bank loans with low-interest rates. Since the maritime sector is the only inlet available to generate revenue at the moment.
“Therefore, the excess fund being raised through Customs have no bearing. It is believed, maybe, that the excess fund is sent to an escrow account domiciled in the Central Bank for no useful purposes.
“It is expected that the Central Bank should have supported entrepreneurs through flexible bank loans with low-interest rates. Since the maritime sector is the only inlet available to generate revenue at the moment. We have now reached a stage for the declaration of emergency in the port environment”, Nicol also said, urging Government to declare a statement of emergency in the port.
“The Shippers Associations in Nigeria are awed by the actions of Government in this respect. Please, declare a state of emergency in the port.
“The aftermath of this action will induce, reduction of staff across the board in the sector. Running cost will increase, industries will find it difficult to achieve their targets as projected”, he further predicted.
“The current economic downturn is global; it was not created by shippers. As it is, we join our colleagues in the freight forwarding trade that there is no palliative for shippers.
“We do not think it is wise to continue in a trade that is not profitable.
“We sympathise with the Government for their inability to make the port viable due to its panic reactions.
“It is only wise to reverse the trend of failure. All the goods now in the port should be exempted in this current increase in exchange rate. This include goods that are in the high seas with approved Central Bank Form M”, he added.
He lamented that singular gesture of hiking the exchange rate has unwittingly and regrettably jeopardise the ongoing efforts of the Freight Forwarders under Council for the Regulation of Freight Forwarding in Nigeria CRFFN, the Nigerian Shippers Council, the Nigerian Ports Authority, going by the enormous sacrifice so far made, during this period.
“We should avoid a major industrial unrest in the Maritime Sector”, he said.
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