Executive Secretary of the Nigerian Shippers’ Council, (NSC) Mr. Hassan Bello has said that loss of comparative advantage in the cargo clearance chain in the sub-region was what informed the decision of the Federal Government to regulate the Nigerian maritime industry.
Speaking in Lagos recently, Bello noted that Nigeria as a maritime nation has lost the comparative advantage in terms of cost and other indices to ports of neighbouring countries, especially in the area of clearance of goods from the ports.
Executive Secretary of the Nigerian Shippers’ Council, (NSC) Mr. Hassan Bello has said that loss of comparative advantage in the cargo clearance chain in the sub-region was what informed the decision of the Federal Government to regulate the Nigerian maritime industry.
Speaking in Lagos recently, Bello noted that Nigeria as a maritime nation has lost the comparative advantage in terms of cost and other indices to ports of neighbouring countries, especially in the area of clearance of goods from the ports.
He opined that through regulation, the lost comparative advantage could be regained if both the regulator and the regulated assist each other in the process.
He disclosed that loss of the comparative advantage by Nigeria to other countries in the sub-region was also responsible for the continued patronage of other ports by Nigerian importers.
Speaking at the members’ Evening of the Nigerian Chamber of Shipping (NCS)) Bello also noted that the absence of an economic regulator has made it difficult for Nigerians to reap the full benefits of the port reform programme of government.
He said that: “After the implementation of the Federal Government’s port reform programme which led to the concession of port terminals to private operators, the Government noticed a disturbing vacuum in the sector, namely, absence of an Economic Regulator that will act as a referee in the industry.
“This vacuum has made it difficult for the nation to enjoy the gains of the programme
“The inefficiency in the procedures and operations of agencies and service providers and even users is adversely affecting and undermining Nigeria’s competitive advantage in international trade”.
The Council boss explained that effective regulation requires much more than just competent economic and financial analysis, but must also manage often complex interaction with the regulated firms, consumers, politicians, courts, the media, and a range of other interests.
Bello said that much was being expected from the Council, adding that the overall benefit of a regulated port industry will lead to improved revenue generation, improved infrastructural development, creation of efficient market, reduction of cost of doing business and improvement of the nation’s Global Competitive Index and consequent attraction of Foreign Direct Investment (FDI).
He was also of the opinion that improved delivery of marine and terminal handling services will in turn lead to reduced turn-around- time of vessels and reduced cost of vessel operations.
A regulated port industry, according to Bello, will also lead to the enthronement of clearer Standard Operating Procedure (SOP) derived from International Conventions and Practices.
“The global competitiveness of Nigerian ports has a major role to play in the attraction of Foreign Direct Investment
“Port Reform no doubt has brought in tremendous benefits to the national economy.
“However, there is still the need to harness other potential areas of the port sector with a view to bringing down the cost of doing business and enthrone efficiency”, he said.
Discussion about this post