• New Rates Effective October
In what seems like a direct response to cries from industry stakeholders on the high cost of doing business in Nigeria, the Nigerian Shippers’ Council in collaboration with the Nigerian Maritime Administration and Safety Agency (NIMASA) have introduced a reviewed benchmarked freight rate for import and export in Nigeria.
• New Rates Effective October
In what seems like a direct response to cries from industry stakeholders on the high cost of doing business in Nigeria, the Nigerian Shippers’ Council in collaboration with the Nigerian Maritime Administration and Safety Agency (NIMASA) have introduced a reviewed benchmarked freight rate for import and export in Nigeria.
At a sensitization meeting between the council and shipping companies in Lagos yesterday, the Director of Commercial Shipping Services of the Council, Mrs. Dabney Shal-holmer said that the new rates will ensure that trading in Nigeria becomes cheaper.
Making a presentation on the provisions of the reviewed 3% rates that will be collected by NIMASA from shipping lines, Shal-holmer explained that the document has been submitted to the Federal Government and that it is already harmonized in the Nigerian Trade Hub of the Nigeria Customs Service.
Explaining the review of the NIMASA 3% levy, she said: "There are certain trades that were being over -charged and some were being under charged, in our classification we have separated them so that high premium cargoes do not benefit extremely while low premium will suffer".
"What we import into the country mainly is not premium cargo, so if you peg it high, you are making it difficult for the trader who is importing to even sell and break even" , she said, even as she added that, "market price of products will be grossly affected, so it is not just the trader that will benefit, it is the Nigerian economy that will benefit".
She further explained that there was a trade-off between both the council and the NIMASA as the new classification will affect the revenue that should accrue naturally to NIMASA.
Shedding light on the adjustment, she disclosed that: "The NIMASA 3% collection, shipping company earning are going to be jolted a little, for the time being and a very short period, revenue in NIMASA will certainly drop by a very little percentage, but we will be gaining because what it will now mean is that we can trade cheaper, and an economy that trade cheaper is an economy on its way to prosperity".
Implementation of the reviewed rates according to her will begin by 1st of October, 2013.
However, while reacting at the meeting, some of the shipping companies lamented that the rates ought to have been reduced from what it has been since 2008.
Managing Director of Grimaldi Shipping, Mr. Askani Russo particularly picked holes in the reviewed rates, saying that it should have been reduced by 10% in order to further reduce the cost of doing business in Nigeria.
He also said that there should be a simplification of terms and need for clarity on payments to NIMASA.
On his part, Mr. Jamiu Odushola of Sharaff Shipping pointed out that the reviewed rates had specified amountsto be paid for empty containers for export, according to him, this provision should be totally expunged.
The stakeholders however reached a consensus that the rates will be reviewed by March 2014 and that subsequently, it will be subject to reviews annually.
Discussion about this post