Business
‘Nigerian Chandlers Lose N3bn Annually’
Secretary of Board of Trustees, Nigerian Licenced Ship Chandlers Association, Dr. Emeka Enebeli says the country is losing about three billion naira annually due to poor business.
Enebeli told newsmen last Thursday in Lagos that the situation arose because laws guiding the business were obsolete.
He said the Customs and Excise Management Act (CEMA) that regulated ship chandling had not been reviewed since 1968 to reflect modern realities.
Enebeli said that the men of the Nigeria Customs Service had the enforcement right and were trained on products that should be supplied to vessels.
The ship chandler also blamed the National Content Monitoring Board for lacking the dynamism of local chandling operations.
“These subsisting laws are obsolete, thereby forcing the profession into a prostrate state.
“These laws are supposed to regulate and compel all practitioners on issues regarding ship chandling activities vis a vis creating jobs,’’ Enebeli was quoted as saying.
He said the number of security agencies at the ports had not helped matters, alleging that some security agents extort money from chandlers.
According to him, the trend has made the practice of the profession one of the most expensive in the world.
He alleged that terminal operators were also taxing them heavily by collecting as much as 20 per cent of the total costs of the goods supplied to ships.
“We have also been working under harsh financial conditions in spite of the huge revenue the sector can generate for the country,” he said.
According to Enebeli, conventional banks seem not to understand the dynamism of “this highly profitable business”, stressing that the business needed lot of funds because of the regular demands for supplies.
“For instance, a ship of 5,000 gross registered tonnage will require 50,000 dollars (about N7.5 million) monthly to take foods, pharmaceuticals, oil, lubricants and other things to face the rigours at sea.
“The funds that are supposed to be domiciled to assist ship chandling activities like the Cabotage Vessel Financing Fund (CVFF) and the National Content Fund are not expressly mentioned in the statutes,’’ Enebeli said.
He said that even the Cabotage operations that had registered 3,000 vessels under the arrangement had not had the participation of Nigerian chandlers.
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