Nigerian ports and the National Single Window gimmick

ON June 17, 2020, at an investigative hearing on the incessant influx of fake, substandard and counterfeit products organized by the House of Representatives Joint Committee on Commerce, Industry, Information, National Orientation, Ethics and Values, the Minister of Industry, Trade and Investment, Adeniyi Adebayo, stated that plans were underway to operationalise the National Single Window (NSW) project as well as deploy scanners at the nation’s seaports before year-end.

The Minister added that there was an implementation committee at work, of which he was a member, to ensure the single window and scanners were deployed appropriately.

“This will significantly improve cargo turnaround time at our ports, promote efficiency and transparency, thereby removing the corruption opportunities that fuel the entry of substandard goods into the country, and enhance Nigerian ports’ competitiveness in the West African region,” the Minister of Industry, Trade and Investment, Adeniyi Adebayo had stated.

The utterances of the Minister of Industry, Trade and Investment was coming after an earlier assurance by the Minister of Transportation, Rotimi Amaechi in 2018, that a National Single Window platform to be managed by the Nigerian Ports Authority (NPA) and funded from the one per cent Comprehensive Import Supervision Scheme (CISS) would soon be set up.

However, a few weeks to the end of the year 2020, the nation’s ports are still locked in a congestion crisis caused by the various manual processes involved in the cargo clearance chain at her ports.

What is Single Window

The Single Window concept enables all stakeholders involved in the business processes to input the data and information used by other stakeholders only once by using a single point of data entry and storage. Implementation of a National Single Window as a single-entry point has the potential to harmonize and standardize the information exchange between commercial and administrative stakeholders and to provide fast, reliable, paperless, and efficient transactions.

The most commonly accepted definition of a Single Window is the one provided by the United Nations Economic Commission for Europe (UNECE) Recommendation number 33: “A facility that allows parties involved in trade and transport to lodge standardized information and documents with a single-entry point to fulfill all import, export, and transit-related regulatory requirements”

Manual Customs Processes

The Nigeria Customs Service (NCS) is currently hampered by a manual process regime which includes a physical examination process on every cargo that arrives at Nigerian ports. According to findings, almost all of the cargoes received at the nation’s seaports are subjected to 100 per cent physical examination.

In the words of a clearing agent, Mr. Phil Amadi, “The 100 per cent examination of cargoes currently being carried out by the Customs certainly slows down the cargo delivery process, and increases the cost of doing business at our ports.

“It is important for the Federal Government to, as a matter of urgency, work on automating Customs processes at our ports, and installing functional scanners to reduce manual clearing processes. Automation and scanning will reduce human contacts at the port and cut down on the use of discretionary powers by government officials. This will in turn reduce the cost of doing business at the port and boost government revenue.

“The major reason behind the high cost of doing business at the ports is because of human contact. Human contact breeds corruption. When somebody in uniform stops my cargo from exiting the ports after such cargo has been examined by the relevant teams of government agencies, as a Nigerian, I already know why my cargo is being stopped. Ordinarily, the cargo in the first place is not supposed to be inspected by anybody physically, but that is what we face in the ports due to lack of scanners.

“After physical examination and the cargo is cleared to exit, along the way, another group of government officials just come from nowhere and start asking questions. For many cargo owners, to just leave the port vicinity is the first thing on their minds, and many will pay to do this. Thus, when too many officials come asking questions, the tendency to part with something becomes pertinent or else, these people won’t let the cargo owner take his cargo out of the port.

“Aside from the government officials inside the ports, others are waiting for you on the highways outside the ports. We encounter officials of the Standard Organisation of Nigeria (SON), Customs and others on the various highways outside the ports. These government officials will stop you to ask the same questions in the same manner that has been done inside the ports.”

Automation

In the area of automation, many government agencies have embraced this in their port processes. From the Nigerian Ports Authority (NPA), Nigeria Customs Service (NCS), Nigerian Maritime Administration and Safety Agency (NIMASA), Nigerian Shippers Council (NSC), SON, amongst others, port processes are now online. However, integration of all these processes is still a tall dream.

Speaking at a recent event on the need to integrate all online processes of government agencies, the Executive Secretary/CEO of the NSC, Mr. Hassan Bello agreed that there is definitely some level of improvement on automation, but would wish that the standard as obtained in advanced ports comes to play in the Nigerian maritime environment.

Bello called for the adoption of virtual ports operation as imperative in fast-tracking development in the maritime sector, adding that the present system in the ports industry was too cumbersome. He called for integration of all stakeholders online platforms in the sector, including the Customs Service, NPA, NSC, importers, terminal operators, and freight forwarders to achieve a 24 hour ports service.

Glimmer of hope

With the ratification of the Nigeria Customs Service modernization project at the cost of $3.1 billion by the Federal Government, there seems to be a glimmer of hope for Nigerian ports users in the area of cargo examination and inspection processes. The modernization project which is a Public-Private-Partnership expected to last for 20-years, was awarded to Messrs E. Customs HC Project Limited as a concessionaire.

Speaking on the development, President of the National Association of Government Approved Freight Forwarders (NAGAFF), Mr. Increase Uche explained that until the Customs modernisation project corrects the many shortcomings of the NCS, Nigerians can only hope for the best.

“Until we see the modalities and how they intend to package it, that is when we can be sure that the NCS has come off age. For a very long time now, we have been hearing of Customs migration from one system to another. Currently, the NCS is on NICIS 2, but all these migrations from one system to the other have not really reflected on what the importing public wants to see. Port users have not seen much difference from what has been going on in the past.

“Let’s wait for the implementation of the $3.1 billion modernization project before we start celebrating. If the modernization project brings about the much needed change, then it should be celebration time for port users. For now, the Customs have not yet fallen in line with global best practices.

“Right now, the primary role of Customs all over the world is not revenue generation but trade facilitation, and in facilitating trade, there are many rules that must be adhered to; first is simplification of procedure for cargo clearance and documentation.

“Another factor to be considered when facilitating trade is unbundling of the law. There is no need for rigidity when implementing rules, even though there is need for implementation and enforcement of the law.

“As long as Customs will continue to dwell on revenue generation over trade facilitation, then we are not getting it right. Trade facilitation will end up generating more revenue for Customs, but what do you see at the ports today? You see Customs placing restrictions on trade goods. Most times, you will see Customs issuing policies that impede the free flow of cargo clearance.

“You see Customs setting up ad-hoc committees and units that will be chasing cargoes all over the port area. This trend is no longer fashionable or in line with global best practices. Customs no longer operate this way globally, we have been telling them.

“Don’t forget that the African Continental Free Trade Area (AfCFTA) will soon commence in January of 2021. This will bring direct collaboration between our Customs and that of other countries in the area of cooperation, synergy and uniformity. It is therefore imperative that Customs start thinking in this direction.”

YOU SHOULD NOT MISS THESE HEADLINES FROM NIGERIAN TRIBUNE

ICYMI: Nigeria Back Into Recession, Worst Since 1987

Nigeria is back into a recession. This time, it is the worst the country has experienced since 1987…

ICYMI: Why We Can’t Call Off Strike Now –ASUU 

It is still uncertain whether the ongoing strike by the Academic Staff Union of Universities (ASUU) will end soon as the president of the union, Professor ‘Biodun Ogunyemi has said there are certain steps to be taken to reach a final conclusion on the issue…