Council advocates allocation of forex to shippers to improve business port - Harbours

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Council advocates allocation of forex to shippers to improve business port


National Council of Managing Directors of Licensed Customs Agents, NCMDLCA, has called on the Federal Government to allocate forex to shippers to enable them embark on their import business, even as it blamed the government for the sharp drop in the level of imports into Nigeria in recent times.
Lucky Amiwero, National President of NCMDLCA

The Council that in as much as government through the Central Bank of Nigeria, CBN, is trying to shore up Nigeria’s foreign external reserves through conservation of forex, it would still need to make it easy for importers to access forex for the importation of essential goods and raw materials required by manufacturers for production.
The National President of the NCMDLCA, Lucky Amiwero, said that government was responsible for the anomaly through the fiscal and monetary policies of the Federal Ministry of Finance and the CBN which have made tariff on goods including rice prohibitive and which has made it impossible for importers to have access to foreign exchange a t the official rate for importation of goods.
Delivering a paper in Lagos on “Concept of Concession and Component of Port Regulation” at a three day seminar he organized for journalists of the newly formed Federated Maritime Media Chapel, FMMC, of the Nigerian Union of Journalists, NUJ, he said government must take measures to make forex available to shippers to boost importation.
According to him, 70 per cent of the traffic that is expected to be coming into Nigeria is being lost because of cash crunch , high cost of funds and the frequent fluctuating nature of the naira in relation to other major currencies regardless of the fact that the local currency has started to gain some ground over the dollar among other currencies.
Amiwero explained that even with the small gains the naira has been making over the dollar , with one dollar exchanging for about N380 at the parallel market , it is still difficult for any importer to purchase FOREX at that rate , import goods with the money and be able to make any tangible profit.
The NMDLCA National President stated that it was an irony that government expected the seaport concessionaires to pay it royalties which is based on the level of throughput that they receive in their terminals , but has not enunciated policies that would make it easy for cargoes to come into the country, and thus facilitate payment of government dues by the terminal operators..
He stated that the ban placed on the importation of rice through the border posts by the Federal Government late last year would have been an advantage for the seaports, but pointed out that this has not been so due to the very high tariff of 60 per cent imposed on the importation of the product and for the fact that it is one of the 41 items on which importers cannot access FOREX through the official market..
Amiwero said that due to the problem of very low traffic at the seaports in recent times , the concessionaires have been finding it very difficult to survive , a development he stated had made most of them to retrench their workforce and compromised their operations in so many ways.
He however said that the concessionaires current fate was due to the fact they were not proactive when they were signing the concession agreement , adding that they would have made government to introduce some clauses into the agreement which would have protected them against the problem of low traffic and government’s unfavourable policies.
He said due to the fact that the seaports have been dry for lack of cargoes, it has been impossible for the Nigerian Ports Authority , Nigerian Maritime Administration and Safety Agency(NIMASA) and the Nigerian Customs Service (NCS) , which government rely for revenue to meet targets and remit money to the coffers of the State.
However, he defines concession as temporary form of privatization explaining that concession agreement is a series of contract that defines the relationship between government and private sector regarding the right to exploit land and facilities as well as the obligation to construct port infrastructure and superstructure.
According to him, the four elements of concession include infrastructure and superstructure, , labour, traffic and tariff while the tool for implementing privatization are Lease, ,Concession, BOT Schemes , Contract Out/ Management Contract and full privatization.

He however said that there was a strong public interest in ensuring that Nigerian ports operate efficiently and safely, that fair services are provided so that ports can support and foster economic development locally and internationally.

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