The Acting Executive Secretary of Nigerian Shippers’ Council (NSC) Mr Hassan Bello, has said that Nigeria would benefit more if its goods were shipped on Cost, Insurance and Freight (CIF) basis rather than on Free on Board basis (FOB).
Bello told newsmen that the suggestion had been made to the Federal Government when it constituted a port reform committee.
He said that the idea of shipping goods on FOB basis meant that the buyer would nominate the ship to carry the cargo to destination.
The Acting Executive Secretary of Nigerian Shippers’ Council (NSC) Mr Hassan Bello, has said that Nigeria would benefit more if its goods were shipped on Cost, Insurance and Freight (CIF) basis rather than on Free on Board basis (FOB).
Bello told newsmen that the suggestion had been made to the Federal Government when it constituted a port reform committee.
He said that the idea of shipping goods on FOB basis meant that the buyer would nominate the ship to carry the cargo to destination.
He stressed that such practice was detrimental to the Nigerian economy.
Bello said: “Eighty per cent of oil–producing countries carry their wet cargo on CIF basis. If it is by CIF, it means Nigerians will provide the ships that will carry the cargo.’’
The NSC boss said that carriage of goods on CIF basis also meant a lot of growth for financial and insurance industries.
He also said that with CIF in place, Nigerian shippers would have the opportunity to own modern ships.
“Indigenous shipping companies have been swimming against the tide because of competition.
“There are seasoned captains capable of carrying Nigeria’s crude.
“Government will have to bring to bear the political will and sagacity to empower indigenous Nigerians to own ships,’’ Bello told NAN.
The acting executive secretary also said the council had established the Shippers’ Complaints Unit which had been extremely effective in addressing complaints within 24 hours.
Bello said that in 2011 and 2012, 200 complaints were treated with 80 per cent of them resolved and N200 million refunds made to shippers on demurrage and container deposit returns.
He added that the council would further strengthen the unit to address complaints of shippers promptly.
He noted that the Federal Government was conscious of the role of the maritime sector in the economy.
Bello said that operators would see tremendous reforms in the maritime sector which would impact on the economy positively.
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