FG Should Frequently Review Trade Policies, Tariffs For Seaports

 By Winifred Ngozi Orji

Harboursandport.com: Lagos- November 11, 2024: The federal government has been advised to carry out frequent reviews of the nation’s trade policies and tariff systems in line with the prevailing economic realities and global best practices, especially at the seaports.

This was one of the submissions made by Professor Bamidele Badejo at the 19th edition of Transquest Anniversary/ Transport Development Symposuim and Award, themed: “Harnessing Nigeria’s Trade Tariff systems for economic growth/curbing the influx of fraudulent imports through the Nigerian ports” at Lagos Airport hotel, Ikeja Lagos, on Friday.

While delivering his lecture Prof. Badejo dissected the Nigerian port system, highlighting the fraudulent activities attributable to the human contact from various government agencies and non-state actors at the port.

He went further to explain the consequences of high tariff rates, stating if the charges are too high, they will at the end of the day make Nigerian imported goods very expensive.

“The result of all these charges at Nigerian seaports is that the importer transfers the additional costs to the prices of goods imported.

“So, there is a huge conflict between economists and other disciplines at ports. Economists argue that tariffs when imposed create market distortion that can actually harm domestic consumers overtime,” Badejo said.

According to him, the fraudulent imports at Nigerian ports are also effects of high tariff rates, unfriendly import policies, corruption across several port organizations and service providers. 

He recommended proactive disciplinary measures especially in the area of tax and custom duty avoidance or untrue declaration, adding that reviewing government policies from time to time would help curb or mitigate fraudulent imports. 

The guest speaker, however, encouraged the agencies of government at seaports to complement each other through cooperation, collaboration and coordination, especially in information sharing. 

The event was graced by notable persons and agencies like National Drug Law Enforcement Agency (NDLEA) Apapa and Tin Can Island Customs Commands, Igbusi Men Socialite Group, Tigbo Esteemed Lion Club, among others. 

In his welcome address, Felix Kumuyi appreciated all guests, who even with their busy schedules still made out time to grace the event. 

Kumuyi said that “it’s unfortunate that the level of participation and seriousness this kind of workshops should attract, especially from our government agencies, has not been forthcoming, other than politically motivated, organizational talk shops.

He said that, this year’s theme was carefully chosen in the face of accusations and counter accusations relating to tax and over taxing of imports.

Kumuyi asked a question, “can we achieve a harmonious trade tariff system or tax regime that is proportionate and in tandem with the prevailing realities?

He stated further that tariffs are trade barriers that raise prices, reduce available quantities of goods and services for businesses and consumers, and create economic burden on foreign exporters.

Kumuyi said there should be a harmonious mechanism that the government and various industry players should adapt to irrespective of the excuses of dollar to naira exchange rates which have kept the tariff system in perpetual fluctuation in the past years.