‘Why export containers litter Lagos ports’

An exporter and Chief Executive Officer of Oklan Best Ltd, Mrs. Elizabeth Olanrewaju Nwankwo has attributed transaction delay and documentation lapse as the major reason many export containers litter the Lagos ports.

According to Mrs. Nwankwo, while speaking with the Nigerian Tribune exclusively, “Exportation at times could be complicated, most particularly when the exporter and the consignee (person requesting for the products abroad) are yet to finalise their financial transaction. For product like cashew, the exporter wants to get his money from the consignee abroad before the container leaves the port.

“Most times, the arrangement is always done on a Free On Board (FOB) basis. The consignee wants to see the products at the port before payment is made to the exporter. The exporter on the other hand brings the container laden with the products to the ports, and wants to get his money before the product is loaded on a ship. Once the container is loaded on a ship and the exporter has not received his money from the consignee, it is always difficult for the exporter to get his money.”

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When asked how the consignee sights the products since he or she is based abroad, the Oklan Best Boss explained that, “Most of the consignees abroad have coverts who work for them here in Lagos. Coverts are inspection agents recognized globally. The coverts sight the product and give feedback to the consignee before payment is made to the exporter. If the exporter is in somewhere like Ogbomosho in Oyo State, the covert will not go to Ogbomosho to sight the product. The covert will demand that the products be brought to the port for inspection. After sighting the products, the covert signs some papers confirming that the products are of good quality and are already at the port. It is after this that the covert will now tell the consignee, who is not in Nigeria, that payment can be made to the exporter.

“Don’t forget that the products were only brought into the ports in containers for inspection by the covert. The products have not yet being scheduled to any shipping line. Most of the port operators only want exporters to bring their containers to the port when there is a schedule with a shipping line. The grace period for export containers are always seven days before they are loaded on a ship. But there are situations where the exporter is yet to get payment from the consignee, so to schedule the products laden in containers to a shipping line becomes difficult.

“So while the exporter waits for the consignee to pay, or even shop for alternative consignee that will pay for the products, the containers wait there in the port, and at times, it could run into weeks and months.

“Another issue that delays export containers has to do with documentation process. Many of the shipping lines have their schedule, and they expect documentation to be concluded within the grace period for their vessels to depart with the containers. If there is an issue with documentation, the container cannot go on the scheduled date, so it overstays in the ports.”