Nigeria’s seaports, the lifeline of the country’s economy, continue to operate under a debilitating limitation of restricted hours of operation, which has made it impossible to clear cargoes out of the ports within 48 hours after the arrival of a ship.
Despite repeated promises and seemingly deliberate efforts, round-the-clock port operations remain elusive. This glaring shortcoming has far-reaching consequences, including stifling trade and hindering economic growth.
Exactly 20 years after the ports were concessioned, it is still impossible to take delivery from any of the nation’s seaports in 48 hours. The current unfortunate situation is reminiscent of the old era, where manual processes and limited infrastructure justified limited operating hours, and by extension delay in cargo clearance.
However, in today’s digital age, with automation and technology advancement, there is no excuse for Nigeria’s ports to lag behind, especially when neighbouring countries like Ghana, Benin Republic and Togo have successfully implemented round-the-clock port operations, and faster cargo clearance and delivery and reaping the benefits of increased trade volumes and revenue.
The cost of this failure is quite huge. Shipping lines and importers face unnecessary delays, incurring additional costs and demurrage charges. Exporters struggle to meet delivery deadlines, damaging Nigeria’s reputation as a reliable trade partner. The economy suffers, as lost revenue and opportunities mount. Nigeria loses an estimated millions of dollars, due to port congestion and inefficiencies.
Moreover, the limited hours of operation create an environment conducive to corruption and extortion. With limited time to clear cargo, importers and exporters are often forced to rely on middlemen and “facilitators,” who exploit the situation for personal gains. This has led to a culture of corruption, where bribes and gratifications are exchanged for speedy clearance and preferential treatment.
The lack of round-the-clock port operations also has a ripple effect on the entire economy. It leads to increased costs for importers and exporters, which are eventually passed down to consumers. This results in higher prices for goods and services, contributing to inflation and reduced economic growth.
Yes, it is true that the hindrances listed above have almost disappeared. The Nigerian Ports Authority now effectively and successfully operates continuous 24-hour marine services, including pilotage, towage, mooring, and vessel traffic management.
However, 24-hour cargo clearance and processing are still not fully realized on the landside, especially during public holidays and festive seasons. This is encouraged by lack of full integration and synchronization among key stakeholders, including banks, shipping companies, terminal operators, and regulatory bodies. This leaves us with the big question: How does a cargo owner take delivery of his cargo, when concerned agencies do not work round-the-clock?
So, why has Nigeria failed to achieve 24/7 port operations despite repeated promises? The answer lies in a combination of factors – inadequate infrastructure, inefficient processes, and a lack of political will. Successive governments have prioritized short-term gains over long-term investments in port infrastructure and technology. The lack of automation and digitalization have resulted in manual processes, prone to errors and delays.
Furthermore, the ports are plagued by inadequate staffing, poor training, and low morale among employees. This has led to a lack of accountability, transparency, and efficiency in port operations. The absence of a robust port management system has resulted in poor coordination, communication, and decision-making.
To break this cycle of inefficiency, Nigeria must prioritize 24-hour port operations. This requires a comprehensive overhaul of port infrastructure, processes, and personnel training. Automation and technology must be embraced to enhance efficiency and transparency. Most importantly, political will and commitment are essential to drive this transformation.
The benefits of 24/7 port operations are numerous. It will reduce congestion, increase efficiency, and lower costs. It will also enhance Nigeria’s reputation as a reliable trade partner, attract more foreign investment, and create jobs. Most importantly, it will stimulate economic growth, reduce poverty, and improve the standard of living for Nigerians.
Achieving 48 hours cargo clearance is directly connected to round-the-clock port operations. There are manifest evidence of intentional policy of government to achieve this. One of these is the fact that, to aggressively slash standard clearing times toward a 48-hour window, the Nigeria Customs Service introduced a Digital One-Stop-Shop (OSS). This integrates separate enforcement units to review non-compliant declarations jointly, preventing the typical ping-pong delays between custom units. This policy has transitioned the customs environment into a fully paperless framework.
Arguably, the boldest of all of these policies is the National Single Window, which hopes to loop all the regulatory agencies in the port into a single web.
The frameworks introduced by the government collapsed multiple independent agency checks into a single electronic window to prevent standard cargo from getting trapped in bureaucratic gridlock.
Importers and clearing agents can follow this highly structured roadmap to guarantee a 48-hour turnaround or mitigate failures.
All these are good, but they have failed to deliver on the 48-hour cargo clearance deadline.
The fundamental way out of failing to clear cargo within the mandatory 48-hour window requires a twin approach: strict transactional compliance by shippers combined with leveraging newly deployed digital government frameworks, be it National Single Window and the One Stop Shop. This will make sense if all the relevant agencies also embrace digitisation.
We take a serious interest in the guidelines given by the Nigeria Customs Service that 48-hour clearance window is a privilege reserved for 100% compliant traders. If your documentation contains errors, the automated systems will flag the shipment, instantly delaying the process. The service also advise that, importers should not wait for the vessel bringing their goods to berth. Importers are advised to secure their Form M, international bills of lading, and manufacturing certificates well in advance, and file their Pre-Arrival Assessment Report (PAAR) through the NICIS II or B’Odogwu portal before the ship arrives .Importers bear the greater burden of compliance to ensure 48 hour cargo clearance.
Nigerian ports are a critical component of the country’s economic infrastructure. It’s time the country prioritized round-the-clock port operations, embrace automation and technology, and address the challenges hindering efficient port operations. Only then can Nigeria attain the dream of 48-hour cargo clearance and unlock its full economic potential and join the ranks of developed maritime nations.
It is not enough to mouth or dream it. There must be a deliberate effort on the part of government and its agencies to work towards 48 hour cargo clearance. It is possible, but, it take more than mere wishes.
