· Bad reputation makes exporters, manufacturers to export from other countries —LCCI
· Exporters now prefer to export from Ghana, Togo — MAN
Citing excruciating export conditions at the Nigerian ports, Nigerian exporters have started relocating to ports of neigbouring countries.
Investigations by Shipping Position Daily revealed that a large number of exporters of perishable goods have now found succor in neigbouring countries of Benin Republic, Ghana and Togo from where they export to Europe and other countries.
The exporters lamented lack of access to foreign exchange, stifling port operations and the bad reputation of Nigeria in ease of doing business among others, as reasons behind the move to neigbouring countries.
Shipping Position Daily recalls that the Lagos Chamber of Commerce and Industry (LCCI) had recently called on the Central Bank of Nigeria (CBN) to review its policy on repatriation of export proceeds, while stating that some exporters have started exporting from neighbouring countries, such as the Republic of Benin.
However, buttressing the LCCI position, its Director General; Dr Muda Yusuf said that Nigeria has bad reputation which necessitates serious scrutiny of goods coming from Nigeria. This he said was one of the reasons that has made so many exporters to shun the Nigeria ports for neigbouring ports.
He further added that Nigeria exporters find it easier to export from Ghana and Togo because of the foreign exchange policy of the country, even as he said further that exporters do not have free access to dollar in Nigeria as compared to other neigbouring countries.
According to him, the inability of exporters to repatriate export proceeds within 90 days for oil and gas and 180 days for non-oil exports has led some exporters to find alternative means of sourcing for foreign exchange, thereby leading them to export from neigbouring countries. He lamented that the move is harming the Nigeria economy as the country is losing a huge amount of revenue through this means.
The LCCI DG, also noted that the port environment has made it difficult for exporters to export through the country, while calling for the improvement of the port environment.
He explained that: “Benin Republic is very close to us and even Ghana. When exporters see that it is getting too difficult to export from the country, they may decide to go to a neigbouring country and I know that some have gone to export through that place; either Benin Republic or even Ghana or Togo for a number of reasons.
“One, the environment at the port is not conducive for export, secondly, because of the foreign exchange policy, because if they get their dollar, they don’t have free access to the dollar. They (CBN)will exchange it for them at a rate that is less than market rate. Some of them have complained about that. Thirdly, we have seen people who export from neighbouring countries because of the reputation of Nigeria. When they hear that a product is coming from Nigeria, there will be a kind of scrutiny that they will subject it to
“We need to improve the environment around our ports and make it easy for people to export, otherwise, we’ll be losing business to the neighbouring countries, because naturally we’re supposed to be the hub for the West and Central Africa region. We’re supposed to be the Maritime hub
“They don’t reckon with export as serious business in some terminals. The point there is that we need to do a lot more work to make it conducive for exporters to export through Nigerian ports, right now it’s very difficult”, he said.
Our correspondent who visited the Seme border last week confirmed that Nigerian manufacturers and exporters now chose to export from Benin Republic as truckload of export from Nigeria were seen waiting to cross the border.
Our correspondent sighted several trucks loaded with different goods waiting to cross to Cotonou in Benin Republic from Seme border.
One of the drivers of the trucks waiting to cross the border informed our correspondent that the goods were not meant for consumption in Benin Republic, but stated that the country will only serve as a transit point for export.
However, when contacted, the Public Relations Officer of the Nigeria Customs Service at Seme border; Husseini Abdullahi confirmed that Nigerian now move their exports through Seme.
He told our correspondent that products such as cement, ginger, zobo and foot wears were the major items being exported across the border.
The Customs spokesperson disclosed that, as at March this year, the command recorded 348,827,777 metric tonnes of exported goods with Free on Board Value of N4.2 billion
He said, “Most of the items that pass through the Seme border here are Dangote cement, Ginger, Zobo, Slippers. Most of them are going through all these West African countries. As at the last time we had a Press Conference that was 30th of March precisely, we recorded 348,827,777 metric tonnes volume of exported goods with Free on Board Value of N4,277,047,153.94k
Confirming also that Nigeria manufacturers now prefer to export through neigbouring countries, the Vice President of the Manufacturers Association of Nigeria (MAN), Mr. John Aluya informed that manufacturers do that, due to the administration of the Nigerian ports, while describing the country as being doomed due to the many bottlenecks involved in exporting of goods .
“The administration of our ports should wake up to its responsibility, because manufacturers now prefer to export from another country, it means your country is doomed, so if that is the case, then we need a proper reform that will make the ease of doing business at the port very accessible and at no extra cost, because people run to other ports because of the road blocks created by those who are operating the system. So, those things have to be looked at and make sure that they are removed, so that the port can operate efficiently and manufacturers can export with ease”, he said.
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