New Import Policy Raises Fear For Cargo Diversion

There are strong indications that cargoes and imports meant for
Nigerian seaports may be diverted to neighbouring Benin Republic,
Ghana and Togo if the federal government go on to implement its new
import guidelines, our reporter learnt.

Recall that it has been reported that Nigeria was losing 60 per
cent of its imports to Benin Republic while the importers have
vowed to divert another 40 per cent if the new import guidelines
known as Palletisation policy is implemented.

Also, the mandatory enforcement of pallets on containerised
goods will attract the presence of the plant quarantine officers in
the port to regulate the Implementation of International Plant
Protection Convention (IPPC) and additional cost, which will
increase the process and cost to importer/licensed customs
agents.

In a telephone interview with LEADERSHIP, yesterday, the
President, Shippers Association Lagos State (SALS), Rev. Jonathan
Nicol said palletisation would increase cost of importing raw
materials into the country. He said instead of shippers to increase
the cost, they would rather divert to a more attractive and cost
efficient seaports in neighbouring countries.

He said: “Lots of cargoes would go to seaport of Cotonou because
of the palletisation policy. Having very difficult import
adjustment policy in Nigeria is what we don’t understand how and
why at this time. Importation of arm didn’t start today in this
country, it’s not new in Nigeria, so, for them to come with a
blanket palettisation scheme and knowing full well that not all
cargoes can be palletised.”

Nicol, who sympathized with local manufacturers, said the policy
will increase numbers of containers used for importation and
increase freight cost. “Shippers might go up to Cotonou to
discharge their goods and ferry it from Cotonou to Nigeria. Our
sympathy goes to the local manufacturing companies.

“Why government is trying to revamp the manufacturing sector
they are killing them through palletisation scheme. We are not
against it but there are some consignment that will not go well
with pallet and Shippers will go on paying more money for
containers therefore, we are making shipping lines and terminal
operators richer at the expense of manufacturers and that is the
tragedy,’’ he said.

Also speaking, a member of the Board of Trustees (BOT) of SALS,
Nicodemus Odolo said implementation of palletisation policy will
worsened already congested road to the nation’s seaport. Odolo
said, “We are having congestion now because of the problem with the
port access road. Now by the time they begin implementation of the
palletization policy, cargo will be doubled and where is the
space?

“The road to move cargo in and out is not there and the shipping
lines will increase their charges because presently a lot of ships
are still waiting to berth at the port because turnaround time is
still poor. So, it is going to be a very bad situation next year in
terms of congestion and cost for shippers. Government is oppressing
us and with this we may have to go and explore other countries
where we have better friendly policies to do business.

“Nigerian importers today are the ones developing Benin
Republics because of unfriendly policies of government,” he said.
“It simply means an increase in cargo. If you are bringing in one
container before, it will turn to two containers and that means the
freight and other clearing cost has to be double. So that is the
effect on the shippers. It is not for our good. So we are not in
support of it. We have been bringing cargoes that are palletized
but not all cargoes are needed to be palletized,” Odolo added.

President, National Council of Managing Directors of Licensed
Customs Agents (NCMDLCA), Lucky Amiwero described the policy as
faulty as it takes Nigeria backward, arguing that there is nowhere
in the world with such practice.

Amiwero said the implication will mean more cost of doing
business at the ports for importers. He added that pallets will
create extra cost for shippers who do not need them, adding that it
will delay and discourage shipment into Nigerian Ports.

There are strong indications that cargoes and imports meant for
Nigerian seaports may be diverted to neighbouring Benin Republic,
Ghana and Togo if the federal government go on to implement its new
import guidelines, our reporter learnt.

Recall that it has been reported that Nigeria was losing 60 per
cent of its imports to Benin Republic while the importers have
vowed to divert another 40 per cent if the new import guidelines
known as Palletisation policy is implemented.

Also, the mandatory enforcement of pallets on containerised
goods will attract the presence of the plant quarantine officers in
the port to regulate the Implementation of International Plant
Protection Convention (IPPC) and additional cost, which will
increase the process and cost to importer/licensed customs
agents.

In a telephone interview with LEADERSHIP, yesterday, the
President, Shippers Association Lagos State (SALS), Rev. Jonathan
Nicol said palletisation would increase cost of importing raw
materials into the country. He said instead of shippers to increase
the cost, they would rather divert to a more attractive and cost
efficient seaports in neighbouring countries.

He said: “Lots of cargoes would go to seaport of Cotonou because
of the palletisation policy. Having very difficult import
adjustment policy in Nigeria is what we don’t understand how and
why at this time. Importation of arm didn’t start today in this
country, it’s not new in Nigeria, so, for them to come with a
blanket palettisation scheme and knowing full well that not all
cargoes can be palletised.”

Nicol, who sympathized with local manufacturers, said the policy
will increase numbers of containers used for importation and
increase freight cost. “Shippers might go up to Cotonou to
discharge their goods and ferry it from Cotonou to Nigeria. Our
sympathy goes to the local manufacturing companies.

“Why government is trying to revamp the manufacturing sector
they are killing them through palletisation scheme. We are not
against it but there are some consignment that will not go well
with pallet and Shippers will go on paying more money for
containers therefore, we are making shipping lines and terminal
operators richer at the expense of manufacturers and that is the
tragedy,’’ he said.

Also speaking, a member of the Board of Trustees (BOT) of SALS,
Nicodemus Odolo said implementation of palletisation policy will
worsened already congested road to the nation’s seaport. Odolo
said, “We are having congestion now because of the problem with the
port access road. Now by the time they begin implementation of the
palletization policy, cargo will be doubled and where is the
space?

“The road to move cargo in and out is not there and the shipping
lines will increase their charges because presently a lot of ships
are still waiting to berth at the port because turnaround time is
still poor. So, it is going to be a very bad situation next year in
terms of congestion and cost for shippers. Government is oppressing
us and with this we may have to go and explore other countries
where we have better friendly policies to do business.

“Nigerian importers today are the ones developing Benin
Republics because of unfriendly policies of government,” he said.
“It simply means an increase in cargo. If you are bringing in one
container before, it will turn to two containers and that means the
freight and other clearing cost has to be double. So that is the
effect on the shippers. It is not for our good. So we are not in
support of it. We have been bringing cargoes that are palletized
but not all cargoes are needed to be palletized,” Odolo added.

President, National Council of Managing Directors of Licensed
Customs Agents (NCMDLCA), Lucky Amiwero described the policy as
faulty as it takes Nigeria backward, arguing that there is nowhere
in the world with such practice.

Amiwero said the implication will mean more cost of doing
business at the ports for importers. He added that pallets will
create extra cost for shippers who do not need them, adding that it
will delay and discourage shipment into Nigerian Ports.