The Cargo Defence Fund has raised an alarm over the increasing indebtedness of Nigerian exporters; mostly those into small and medium export, a development it said might affect the Federal Government’s effort of boosting exportation.
The fund is a project of the Nigerian Shippers’ Council which is the Federal Government parastatal charged with the responsibility of protecting the interests of importers and exporters. The fund also seeks to assist Nigerian shippers in the pursuit of their claims recoveries and legal remedies.
The Cargo Defence Fund has raised an alarm over the increasing indebtedness of Nigerian exporters; mostly those into small and medium export, a development it said might affect the Federal Government’s effort of boosting exportation.
The fund is a project of the Nigerian Shippers’ Council which is the Federal Government parastatal charged with the responsibility of protecting the interests of importers and exporters. The fund also seeks to assist Nigerian shippers in the pursuit of their claims recoveries and legal remedies.
Briefing journalist recently in Lagos, Secretary of Cargo Defence Fund, Ms Azuka Ogo expressed fear that if something is not done urgently to check the increasing level of indebtedness of the European companies from Germany, Poland Spain and the Netherlands to Nigerian exporters, many of them might go out business in a very short time.
Azuka said: ’’As I speak to you, the cargo defence fund is handling a total of 27 charcoal cases on behalf of Nigerian exporters. The trends in these cases are the same. Nigerian businessman or newly retired public servants attend one of the several seminars on export opportunities organized by some private interests. At the seminar they are fed with mouth- watering stories of how they make several thousands of naira in the procurement of the commodity and exports on the basis of what in the financial circle is termed an ‘open account’. Soon, upon receipt of the cargo, the foreign buyer reneges on the contract terms of payment and throws the Nigerian exporters into a quandary ‘’, she lamented.
She explained that open account payment is an insecure mode of payment when it comes to international trade, adding that secure terms of payment include letter of credit which is a system that assures the exporter through the bank of the buyer when comply with the terms of contract.
The secretary said that there have been too much of cases of loss from Nigerian exporters as a result of cheating which the foreigners’ claim that the product has depreciate in quality.
Mrs Azuka however urged exporters of other commodities to check properly before going into business with their foreign counterpart.
‘’Having patiently observed this trend and commenced prompt actions to recover from the foreign debtors to our nationals, we deem it our patriotic duty and mandate to alert other prospective exporters on this obvious challenges and to advise and caution in this and other areas of export business’’.
‘’We are particularly worried that some of our foreign debtors, while unwilling to pay what they currently owe are soliciting businesses from other unsuspecting Nigerian exporters and using completely new business identities’’.
According to her the total amount owed to Nigerian charcoal exporters stands at447, 576 Euro and N3, 400, 000.00 which exclude interests and damages.
‘’Having now received the goods and resold for their own financial benefits in their own countries, these foreign buyers are now giving all manner of excuses for failure to pay for the Nigerian exports. The outstanding claims owed to Nigerian charcoal exporters today stands at 447,576 Euro and N3,400,000.00 excluding interest and damages’’, she added.
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