Following reports of over several abandoned export containers at Lagos ports, stakeholders in the nation’s maritime industry have advocated for logistic reforms to address systemic challenges hindering export processes and jeopardizing Nigeria’s economic diversification efforts.
Shipping Position Daily recalls that the Nigerian Shippers Council (NSC) during a recent working visit to Lagos ports, observed that about 1,940 containers had been in Apapa port for about 10 days, as well as about 1,524 containers which had stayed between 11 days and 20 days.
Specifically, the Executive Secretary of NSC, Mr Pius Akutah, during his visit to APM Terminal in Apapa, expressed concern over the growing number of abandoned export containers due to non-compliance with regulatory guidelines. He noted that the Council will be taking immediate measures to remove long-standing export containers trapped in Lagos ports.
Speaking with Chief Executive Officer for Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf last week, he expressed dismay at the revelation that some investors were forced to abandon their export containers due to logistical constraints, emphasizing the critical role of exports in diversifying Nigeria’s economy and reducing dependency on oil revenues.
Dr Yusuf highlighted the detrimental impact of these logistical hurdles on exporters, noting instances where cargo was split between the port and external locations, jeopardizing export contracts and diminishing Nigeria’s competitiveness in the global market.
The CCPE Chief Executive called for a comprehensive audit and diagnosis of the export process to identify and address bottlenecks effectively. He cited reports of logistical challenges created by the Nigerian Ports Authority (NPA), including issues with call-up systems and pre-gates, which disrupt the timely movement of export cargo.
While emphasizing the urgency of addressing logistic issues, he stressed the importance of every dollar earned through exports in supporting the economy. He urged policymakers to prioritize reforms that streamline export logistics and facilitate smoother cargo movement to meet export deadlines and sustain investor confidence.
Yusuf also stressed the need to overcome barriers hindering export activities, urging concerted efforts to enhance Nigeria’s export competitiveness and capitalize on the potential of non-oil sectors to drive economic growth and foreign exchange earnings.
In his words: “At a time when we badly need the foreign exchange, I think this is perhaps a very disturbing news or revelation because if there is any sector that we need to encourage and give all the support at a time like this is exports. We have said repeatedly that we are too dependent on oil experts and that it was necessary to diversify and encourage non-oil exports.
“So if these investors have put in so much effort to get their containers to either the terminal on the port and out of some constraints are forced to abandon it, then it’s a major cause for concern and I think what needs to happen is to do a proper audit of the process, to do proper diagnostics to know exactly where the bottlenecks are coming from. Over time I’ve had stories about bottlenecks being created by NPA, such as all these call-up systems, pre gates and the likes where you move export cargo from one location to pre-gate and all those processes and the vessels will not wait for you. They are scheduled and once it is time they move.
“The logistic issues with respect to export needs to be addressed, and it needs to be addressed very urgently because we need every dollar that you can get for this economy. It’s not a good commentary at all to learn that exporters are facing this challenge and it’s mainly as a result of all these logistics, such as Call ups, access to the ports and all of that, by the time those things are disrupted, people cannot meet the deadline. Then you have a termination for the contract that you have signed as an exporter. That’s why many other countries are doing better than us in terms of non-all export. So we need to break all those barriers that are causing all these problems” Muda said.
Also speaking on the challenges of the export industry, member of Board of Trustees of Shippers Association of Lagos State (SALS), Rev Nicodemus Odolo expressed concerns over the abandonment of over 600 containers at Lagos ports, attributing the issue to inefficient regulatory practices and outdated procedures that hinder timely exports.
According to Odolo, the considerable delay in processing exports is costing the country significantly, both in potential revenue and cost of goods, which often expire before their documentation is cleared. He criticized the current system, describing it as overcomplicated and sluggish, especially when compared to standards in developed countries where export transactions are completed within minutes.
The trade expert also pointed out the paradox of technological implementation in Nigeria’s export sector. He suggested that reducing human intervention in the processing chain could decrease corruption and inefficiency.
Furthermore, Odolo addressed the role of shipping lines in the logistical nightmare, proposing that companies responsible for bringing containers into the country should also be tasked with their removal, whether filled for export or empty. To combat this, he recommended imposing demurrage charges on shipping lines that allow their containers to occupy land space for extended periods without proper turnover.
Highlighting the need for regulatory oversight, Odolo called on agencies to monitor why exports are abandoned and to streamline procedures to facilitate smoother operations at the ports. He urged for a more straightforward system that minimizes the current redundancies and complexities plaguing the export process in Nigeria.
“Our regulatory authorities don’t know what they are doing. You can imagine what the worth of 600 containers will be in Naira or Dollar. The abandonment of the cargo will be as a result of bottlenecks. And difficulties they have encountered during the course of exporting. Maybe before they finish their documentation to export the container, the time span of the produce or the products has expired. So they have to abandon it.
“So, invariably in our export business and also import business, there are too many bottlenecks, too much documentation. We have to make this simple. In developed countries, under minutes, under an hour, you have finished your transactions. But Nigeria, it takes days, weeks, months. That is because of the wastage. And we are copying the developed world; we are into the computer age, where technology has been in use. But here, technology is bringing delay. What is delay? Why is technology bringing delay? Because there are still human interactions. When you allow human interaction in your system, you are not going to be able to do anything. So, there are going to be more problems.
“Of a truth, we still have some people who want to do business behind the back door, but if our system is right, those who are doing business behind the back door will have no way because the window will not open for them. If they don’t meet the requirement, then they will not be allowed into the ports. Regulatory agencies should monitor all these processes” Odolo said.
