An executive member of Nigerian Licensed Customs Agents (ANLCA), John Anya, has observed that illegal extortion by multiple government agencies with overlapping functions and poor implementation of port reforms agenda, accounts for over 80 per cent of the rising cost of doing business in Nigerian ports.

The observation was made on Wednesday in Port Harcourt during an interview with The Tide.

According to him, the developments have compelled importers to divert imported cargoes meant for Nigeria, to neighbouring countries ports, thereby encouraging smuggling through the land borders and denying the government of revenues that should accrue to it.

He said that in the course of trying to protect their individual interests, the said agencies  delay cargo clearance, causing them to attract extra charges on the freight, in form of demurrage saying that government agencies that have no relevance in port operations, strive to establish their presence in the ports, for the financial benefits that can be extorted from importers and heir agents.

“Nigerian ports today are serving as ‘settlement centres’ for all the security agencies who strive to be in the port, because they want tips, and that is why we have animal, plant and fish quarantine, which are supposed to be under one umbrella. Some agencies after examination, ask consignees to reposition their containers for fresh examination, which runs on for days and attract storage charges,” Anya lamented.

Also a maritime expert, Mr Punua Kemi who spoke to The Tide, disclosed that the cost of transportation of goods from the ports to importers warehouses had gone up from N40,000 to N100,000 to cover for the lost days it takes trucks to return empty to the terminal due to traffic gridlocks and lack of holding bays, for shipping companies. The extra N60,000 is transferred to the consuming public as added cost of goods.

The demurrage factor that is paid to the shipping companies and terminal operators for late returning of empty containers and long cargo dwell-time has added monetary value and when this is added, it shoots up the cost of goods in the market,” he noted.

He regretted that Nigerian ports are no longer user friendly, and as a result, more importers cannel their cargoes through the ports of neighbouring countires, where it is cheaper and faster for them to take their goods, irrespective of goods from boarder to importers warehouse.