Daily Independent (Lagos)

Nigeria: Port Congestion - Why Yar'Adua's Ultimatum May Fail

Emma Chukwuanukwu And Andrew Airahuobhor

12 January 2009


The directive by President Umaru Yar'Adua to decongest Nigerian seaports within 60 days may have run into a hitch as monumental corruption and multiple demands by government agencies in the ports have compounded the problem, resulting in higher prices of imported goods and services across the country.

The president issued the ultimatum last week after the expiration of an earlier two weeks ultimatum by the minister of transportation, Ibrahim Bio. The minister's directive failed to achieve any result.

There are fears that if the above fundamental issues are not addressed, the congestion would continue, because, Terminal operators and officials of government agencies, allegedly benefit from the congestion.

At the stakeholders' forum on port congestion, held last Tuesday, January 6, 2009, at the Sheraton Hotel and Towers, Ikeja, Lagos, a decisions were taken to, among others, set up a Task Force to conduct 100 per cent physical examination of containers that have no Form M, Risk Assessment Report and observed concealment, untrue and false declarations, assess and value them in terms of quantity, value and rating, issue Demand Notes and collect appropriate custom duty to enable the prompt release of the goods.

The Task Force when constituted is expected to commence operation not later than January 12. It is expected to conclude its assignment within sixty (60) calendar days effective from the commencement date. Consignees were invited to come forward and clear such goods.

The stakeholders' forum was attended by the Minister of Transport, Ibrahim Isa Bio, Minister of Finance, Mansur Mukhtar, the Comptroller General of Customs, the Managing Director, Nigerian Ports Authority, (NPA), Director General, Nigerian Maritime Administration and Safety Agency (NIMASA), the Executive Secretary, Nigerian Shippers Council, Terminal Operators, Licensed Customs Agents, Council for the Regulation of Freight Forwarding in Nigeria, managements of relevant parastatals of the Federal Ministries of Transport and Finance, transporters and other relevant stakeholders in the port industry.

According to Lucky Amiwero, president of the Institute of Transport Administration (IOTA), achieving decongestion within the 60 day period depends on the seriousness of government, saying that a lot of issues have to be addressed. Amiwero lamented that port congestion occured in 2001, 2004 and the latest which started in 2008, all for the same reasons of corruption.

The IOTA boss pointed out that Terminal operators and government agencies benefit from the congestion.

"Terminal operators benefit because they will charge demurrage. Customs benefit because, at the end of the day, they will auction containers. They want to auction what people have spent millions to import. What is auction committee? When you have not been able to put your house in order, the port is congested and you want to sell people's containers."

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