A public hearing on the International Cargo Tracking Note (ICTN) is scheduled to take place today, October 28, 2024 at the National Assembly in Abuja.
The hearing comes in the wake of renewed interest and investigation by the House of Representatives into the non-implementation of the ICTN scheme, which was designed to bolster the security of international shipping and mitigate the risks associated with dangerous cargo movements.
The public hearing was confirmed to our correspondent by Mr. Rotimi Anifowoshe, Director of Research and Strategic Planning at the Nigeria Shippers’ Council.
Anifowoshe, when questioned about the reason behind the delay of the cargo tracking note, explained that the Council is not to blame for the setbacks. This is even as he informed that a public hearing will occur today (Monday).
Recall that the ICTN was introduced in 2010 but faced immediate challenges, leading to its suspension in 2011 and reintroduced again in 2016. This background has fueled the current inquiry by lawmakers who aim to understand the factors impeding its effective rollout in Nigeria. The House of Representatives resolved to investigate these circumstances about two months ago, responding to a motion moved by Hon. Ahmad Muhammad.
During his presentation, Hon. Muhammad highlighted the strategic importance of Nigerian ports, which handle nearly 60 percent of cargo in the Gulf of Guinea, making them pivotal points for trade in West and Central Africa.
He expressed grave concerns about the rise of undocumented cargoes in Nigerian seaports, which poses significant security risks and undermines operational efficiency. The lack of reliable cargo data has led to substantial revenue losses, complicating the nation’s trade landscape.
The ICTN scheme, initially developed by the Union of African Shippers Councils (UASC) in 1998, aims to enhance the safety and security of supply chains, track the origin and destination of cargo, and generate trustworthy data regarding imports and exports. Hon. Muhammad emphasized that ICTN technology centralizes tamper-proof information, enhances monitoring capabilities, and curbs illegal activities such as smuggling and counterfeiting. This aligns with the recommendations set forth by the World Trade Organization (WTO) and World Customs Organization (WCO) on trade facilitation and security.
Despite the potential benefits of the ICTN scheme, its full implementation has been thwarted by alleged irregularities, as pointed out by Hon. Muhammad. He noted that the presence of the Nigeria Shippers Council as the implementing authority has not been sufficient to guarantee transparency and efficiency in the process. Consequently, the ongoing non-implementation has exacerbated cargo-related security challenges, resulting in smuggling and illicit trade, which cost the country billions of Naira in lost revenue due to the absence of accurate data.
Adding to the controversy, prominent human rights lawyer Femi Falana (SAN) revealed in August a massive corruption scandal involving high-ranking Nigerian officials who allegedly commandeered the ICTN scheme’s contract. This corruption has reportedly deprived the nation of over $500 million in potential revenue. Falana stated that despite President Muhammadu Buhari’s 2022 Executive Order that authorized a specific company to operate the ICTN, five other companies backed by government officials effectively undermined this directive, further complicating the situation.
This issue is not new; the ICTN scheme has previously been mired in controversy, including a 2011 incident when former Minister of Finance; Ngozi Okonjo-Iweala terminated the contract due to allegations of non-remittance of fees to the national treasury.
In response to inquiries regarding the delay in implementing the ICTN scheme, Mr Anifowoshe confirmed that the upcoming public hearing on the ICTN will address these issues and provide stakeholders an opportunity to express their views on the matter.
