Business

Nigerian Shippers won’t bear cost of CTN, NSC assures manufacturers

Amid concerns about the negative cost implication of the reintroduction of the Cargo Tracking Note (CTN), the Nigerian Shippers’ Council (NSC) has assured the Manufacturers’ Association of Nigeria (MAN) that Nigerian shippers will not bear the burden of costs.

This assurance was given recently by the NSC Executive Secretary/Chief Executive Officer, Mr Emmanuel Jime, when he met in his office with some delegates from MAN, led by its former Vice President, Mr John Aluya, and the Director of Corporate Affairs, Mr. Ambrose Oruche, who represented the Director-General.

Allaying the association’s fears, Jime stated that the reintroduction of the CTN was “not fundamentally different from the previous operations of the system,” adding that “the cost-implication this time has been located in a way that does not do dramatic damage as far as the economy is concerned.”

According to him, “The understanding we have at the Nigerian Shippers’ Council is that this cost will not be borne by the Nigerian shipper, and that, for me, is the key with which we need to appreciate this.

“In the course of implementation, as nothing is perfect, especially when you are just starting, I believe we will see areas where there will be need for some twerking, and if that happens, we will be more than happy to address as the situations arrive. In the moment, I think the benefits far outweigh whatever disadvantages there may be.”

Listing the expected gains, Jimenoted that “This cost actually has always been in shipping charge, so it is not something really new.

“Beyond that, and most importantly, is to look at the real impact that this is going to have on the Nigerian economy, especially in the area of securing a nation; a lot more than we have done in the past.

“Part of the challenge we have had here is the proliferation of small arms around the country, some of which have actually found their way through the port, the reason being that we have not actually put a tool, like what we have now, that would enable us detect from the get-go of such consignments.

“If you put that side-by-side the minimal increase that this is going to bring, I think it will make more sense that we should be able to provide a secure environment that enables business to flourish. No one actually wants to do business in an environment of chaos, where there is insecurity. That is the balance we have to input in this discussion.

“Also, the ability to address the theft of crude, “which is also a huge challenge as far as the nation’s resources are concerned, is also a variable that we must put on the table.

“I don’t really have the data, but it is not rocket science that the amount of crude that is stolen is sufficient to cause the kind of development that will develop our nation. These are some of the balancing factors that this is going to bring.”

“The phenomenon of under-declaration, which also has a negative impact on the economy is another motivation for its reintroduction. All these derivable positives balance out some cost-derivatives and whatever minimal increase that we are going to have on the economy.”

Earlier, Oruche had told Jime that MAN remained opposed to the reintroduction of the CTN because of its earlier convictions that it would have negative affect on the economy, having already been embedded in the freight cost from the shipping lines. He explained that this position prompted its suspension in 2012.

He further stressed that if it was ever implemented before the suspension, it was not at any cost to shippers until this reintroduction.

“If the shipping lines have embedded this along other costs, they should continue to bear it.

“They (shipping lines) should not in any way transfer the cost of CTN to manufacturers or importers, because that will also have a negative impact on the economy. We are talking about the inflation rate; last month the rate increased, so, if you introduce more costs, what will happen to consumers?

“You and I will bear the brunt while foreigners are enjoying the money. So, that is why we are saying, let the charges remain as they are, even with the reintroduction of the CTN, or even reduce.”

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