“VREG is a fraud by the Federal government to defraud Nigerians”
Dr Kayode Farinto, apart from being the Vice President of the Association of Nigerian Licensed Customs Agents, is also a re-elected member of the governing council of the Council for the Regulation of Freight Forwarding in Nigeria. In this interview with Oluyinka Onigbinde and Joshua Yousouph, he speaks on the recent election, his embattled association and sundry issues.
We have had a lot of protests from freight forwarders this year against VREG, VIN among others. It seems freight forwarders are not ready for automation?
That is an allegation that I can call a baseless one. We actually demanded for the automation of our system because that is the only way we can have respite in our system, but the problem is that when a child is not yet crawling and the child wants to walk, he is going to have difficulties. We started asking for a uniform value on vehicles which should be done in such a way that once you put your VIN in the system, it gives you the duty that you will pay. We requested for it from the CG of Customs and he directed that a committee be set up where it would be looked at and fine-tuned before it comes to the public. But we noticed that some “thugs” and fifth columnists in the Nigeria Customs Service hijacked it and did not follow the CG’s directives. They believed they can do anything they like by putting internet value on the system and you should know that there will be a reaction.
A vehicle that was bought for $5,000 and in the system you are seeing $15,000. Where is the correlation and how will that person fair? How will he clear such a vehicle and who will buy it? That is the problem. Customs did not do what they ought to do, that is why we have crises. We have also told them that even this period of 30 days they should invite stakeholders and subject their values to be seen and criticized by the stakeholders. Before a policy is imposed on someone, it must be subjected to scrutiny and there must be an agreement. It is not good for the Nigeria Customs Service to think they can do it all alone. Even the WCO 2013 World book says every Customs nation must collaborate with its stakeholders. Who are the stakeholders? but the Licensed Customs Agents. We noticed it was actually something that was hatched by a group of people thinking that it would go.
Talking about VREG, it is a fraud by the Federal government. We do not need it. I asked questions on why they introduced VREG and the government said they want to data of the legitimately-cleared vehicles from the system. This is not true, because they can get their data from the Nigeria Customs Service. They said they want to have data and they are still slamming charges on the importer and it ranges from N4000, N6000, N8000 depending on the cubic capacity. VREG is a fraud by the Federal government to extort Nigerians.
Which is the update as regards the demurrage that have accrued, who pays?
The importer pays and the final consumer suffers it.
What about the mediation by the Nigerian Shippers’ Council being the economic regulator with the shipping companies and terminal operators?
The Nigerian Shippers’ Council actually tried its best to talk to some of the shipping companies to waive the demurrages. Some promised to do it while many did not do it. I give it to PTML. I think they gave about 75 percent waiver and that is the only terminal operator or shipping company that I can say categorically that have assisted the agents. This is a trying time for agents and importers and they considered that by waiving demurrage for us.
What is your reaction to the CRFFN elections that took place recently?
My reaction is that the election has come and gone. There are always stories as regards elections. Even in the last American Government elections, there were stories here and there. You cannot have perfection because human being is not perfect. Even when you make efforts to be perfect, there are still some people who will want to thwart your efforts to make it imperfect. The election has come and gone. Congratulations to those who were elected. Those that lost (unfortunately) should try some other time. That is life. In battles, you win some and lose some.
Your sister association NAGAFF now has eight members on the board. ANLCA struggled to have five. What do you make of this?
I did not make anything, because when we started this time around to participate in the election, some people wrote a petition to the Honorable Minister of Transportation stating that they should not consider it on the level of the associations and they are powerful members of ANLCA. So what I can say is that we have succeeded in un-doing ourselves. It is some elders of ANLCA who actually wrote petitions to the Minister, that they should not allow the issue of 6-6-1-1-1 to go. Nobody should complain because it is a self-inflicted injury.
You are the only member of ANLCA in the Western zone that was reelected into the Governing Council. Do you think this is a result of the crises rocking your association presently?
Well, you cannot separate that from it, because if we had our house intact, there will actually be a better outing. But because it was “to your tent oh Israel”, that is why we can see it like this. That I was elected is to the glory of God, because a lot of permutations and sidelining went on. The elections had to do with a lot of intrigues. But I give it to God and my group; ‘Kayfar group’ who were solidly behind me day and night despite the fact that they were induced at the point of voting with as high as N60,000 but they never bulged. They still voted for me because they believed in me. So I give it to God and to Kayfar group.
What is the update about the reconciliation going on in ANLCA?
For now, there is no update. It is still in the embryonic stage. When it materializes, we would call the press and everyone will know about it. But for now, we are still discussing. There is no doubt about that.
It’s been over a month since the NECOM has been ejected from your National Secretariat and up till now, we have not heard anything from you. We also heard that those that ejected you said that your tenure is over. What do you have to say about this?
We were not ejected. The secretariat was forcefully taken over with the aid of the Nigerian Police Force. That was why I said the Nigerian Police goofed. Wrong information was given to the Nigerian Police saying that there was going to be a breakdown of law and order. Because the NPF never wanted that, they swung into action, and the mistake is that they never called the second party to hear what the real problem is. That is the kind of orientation that we have in this society. This situation is like taking sides and it should not be seen in a sane society. That is why I am calling for the reorientation of our Police Force. Thank God the issue of alternative Dispute resolution is inculcated into the policy and operations of the Nigeria Police, but they still need to do more.
We were not ejected and our tenure has not expired. There was a constitutional amendment at Owerri in Imo state where it gave any tenure one term of five years. That means the terminal date for this NECOM is next year April 13 or 18. So our tenure is still running. What we notice is just an in-fighting by those that were expelled. The problem we have in this part of the world is Ego. Instead of them apologizing like some other people did and were absorbed back into the association. Some people believed that they have been in the association for the past 39 years and there had been no President they haven’t given problem compelling them to dance to their tune and demands. That is what led to where we are now. That is the problem that is manifesting, but whether anybody likes it or not, we have established the fact the Constitution of ANLCA is very sacrosanct. It is above everybody and nobody is above the constitution. Once you have subscribed to be a member of ANLCA then you must live by the regulations. What we noticed is just a minor issue. The secretariat will be opened soon.
So how have you been coping since the secretariat has been shut?
The good thing is that COVID 19 brought a lot of good things to the world. With the advent of COVID 19, you can do your meetings through Zoom and a lot of things without necessarily being physical. ANLCA has gone automated, so most of the things we do are being automated. We thank God for that. We also have a viable Secretary. As I talk to you, we receive and send letters, we have our meetings and many other things. So ANLCA is still functioning very well.
Read Also: Shipping Position Interaction with Kayode Farinto
You were in the last Governing Council of CRFFN, many people believed that not much was achieved. Where do you think the last Council missed it?
The Council has been hijacked by the Federal Government. It is the Council for the Regulation of Freight Forwarding in Nigeria; it is the freight forwarders’ Council, but it has been hijacked by the government. That is why we are saying now that this particular Council should be allowed by the government to run by itself. There shouldn’t be any interference. But we thank God that people like us are having the opportunity of coming back and I have said that it is not going to be rosy for everybody in the Council. We must do the right thing. The freight forwarders must be protected. Knowledge must be impacted and there must be capacity building for freight forwarders because this Council is for freight forwarders. Whether anybody likes it or not, we are going to the Council to face the business.
The freight forwarders going into the Council are just 15 while the government appointees are 17.
That is why I said it has been hijacked. If we want to discuss any policy issue and we subject it to voting, they already have an advantage over us. But whether we like it or not, when a system is running you cannot grudgingly walk away. If you do not like it, just be in that house and complain. The majority may have their way, but the minority will have their say. So the minority reports whether we like it or not will be accumulating and after a period of time, it will be like a bomb blast.
What difference do you seek to make in this Governing Council? What are you bringing to the table?
We must ensure that there is capacity building. I have mentioned it severally that our freight forwarders are only facing dry cargo. There are other cargoes that can be faced like wet cargoes and dangerous goods which are more lucrative. We are going to train agents on the clearance and handling of dangerous goods and wet cargoes. It shouldn’t be necessarily vehicles all the time. There are other cargoes that clearing agents can go into. We would also impact knowledge. When you have a consignment and you make your declaration, you already know if you’re at fault or not and not a Customs officer holding you to ransom. It is because there is no knowledge that is why we have most of these things. Although we have some of them who are continually training themselves. Rome was not built in a day. I also started from a zero level. It is a matter of determination. I want to implore the agent that they should make sure that have the zeal to learn.
With the new Governing Council, there are insinuations that you may want to be the next Chairman of the governing Council. We will like to hear from you.
I am an ambitious person, but I have not even thought of it. This is because if I want to be the Chairman of the Governing Council, I may be living in dreamland, because at the last meeting we had with the Honorable Minister of Transportation, he already said he has a Chairman. He said that he already has a Chairman. What that means is that whoever has an ambition should not waste his time. So I will be stupid to say I have the ambition to be the Chairman of the Council. I don’t have time for that. But when we go and sit in the council, you must protect the clearing agent and that is where we may have problems and crises. The real thing must be done. I don’t have ambition towards being the Chairman because the Minister told us categorically that he has a Chairman.
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