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Smuggling: FG Should Reduce Import Duty On Vehicles -STOAN

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The Seaport Terminal Operators Association of Nigeria (STOAN) has said that the Federal Government’s move to stop smuggling through the ban on importation of vehicles through the land borders should be complemented with a reduction in customs duty.
The spokesman of STOAN, Mr Bolaji Akinola, said this in an interview with newsmen in Lagos, yesterday.
The Tide reports that the Federal Government recently announced a ban on importation of vehicles through the land borders with effect from Jan. 1, 2017.
According to the STOAN spokesman, the move to stop smuggling of vehicles into the country through the ban will not yield the desired result if not complemented with a corresponding reduction in customs duty.
Akinola spoke against the backdrop of the new Vehicle Identification Number (VIN) scheme announced this week by the Federal Government.
“The rate of smuggling in Nigeria especially of vehicles is alarmingly high.
“This is essentially due to the high and prohibitive import duty on vehicle which is more than twice what obtains in other countries in the sub-region.
“While the VIN scheme sounds like a good idea, it may not do much to check smuggling.
“The main antidote to smuggling is the reduction of Customs duty on vehicles to bring it to the level obtainable in other West African countries, ‘’ the STOAN spokesman told newsmen.
He said that the duty should not be more than 10 per cent.
“Why exactly are people landing their vehicles in the ports of neighbouring countries and smuggled into Nigeria?
“It is to avoid the high Customs duties at the ports,’’ Akinola said.
He said it had become difficult to check smuggling through the land borders because of the preponderance of illegal entry routes into the country.
According to him, there are more than 1,600 illegal entry routes into Nigeria.
“The borders are porous. It will be difficult for any agency of government to effectively patrol and check the influx of goods and persons through those porous entry points.
“There is a need to mount barriers and build either strong high walls or electric fences at most of those entry points. Most importantly, government must deploy technology to secure our borders,’’ he told said.
Akinola said that the high rate of import duty on vehicle had shot up the prices of vehicles beyond the reach of many Nigerians as “the prices of vehicles have doubled over the past 18 months”.
“This is due to the high Customs duty, which is 35 per cent plus an additional surcharge of 35 per cent bringing the total government’s tariff to 70 per cent.
“This is way too high and when you place it side by side the high rate of foreign exchange, you see why Nigerians are paying more to acquire cars.
“The ban on importation through land borders is not enough to check smuggling and bring down the prices. Only a reduction of Customs duty will achieve that,” he said.
The STOAN spokesman also said that there were too many government agencies operating at the ports.
According to him, this (presence of many government agencies) is contributing to the high cost of doing business at the ports.
“The high cost of doing business at the port, which many allude to, is not because of high charges by operators but due to high Customs tariff and multiple checks by government agencies.
“Reduce Customs duty, reduce the huge crowd of government agencies operating at the ports and automate the Customs clearing process, which is way too manual and regressive.
“Someone described the Customs clearing process as archaic and way too expensive.
“There are multiple checks within and outside the ports, which must be tackled by government.
“A former Finance Minister, Dr Ngozi Okonjo-Iweala ejected many of the agencies a few years ago but they were all back in their multitude,” Akinola said.
He said that Nigerian ports had ample capacity to handle both imports and exports and to support the Federal Government’s revenue diversification drive.
“There is ample capacity at the ports. Most terminals are operating at less than half their capacities.
“Our ports were vibrant until the Jonathan administration enacted some policies that chased shippers away.
“This government will have its name in gold by reversing those ill-advised policies so as to bring back activities and jobs to the ports,” the STOAN spokesman said.

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Maritime

Shippers’ Council Registers 160 Port Operators

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The Nigerian Shippers Council (NSC) says it has registered 160 Port stakeholders into its Regulated Port Service Provider and Users platform since the initiative began in 2023.
Executive Secretary, NSC, Mr Pius Akutah, made the disclosure on the sideline of a sensitisation programme by the commission for port operators in Lagos, with the theme, “Regulated Port Service Provider and Users”.
Represented by the Director, Consumer Affairs, Chief Cajetan Agu, Akutah emphasised the significance of the programme for stakeholders.
He said the sensitisation programme was the second edition after its commencement during the last quarter of 2023.
The Secretary said the 160 registered port operators consist of agencies, terminal operators, shipping companies, individual port users as well as service providers.
“We invited the ports stakeholders for enlightening them on the processes for online registration of Regulated Port Service Provider and Users.
“We have demonstrated to them how to register and how to make payment and we were able to present before them the various categories of the registration.
“The rate of payment is also in the registration. The payment of each group depends on the operation. A shipper pays N30,000, terminal operators and shipping companies pay N300,000, truckers also pay N30,000, while some pay N50,000 and N100,000.
“The Council was able to intimate them on the benefits, because port users benefit more as we help to interface on reducing port charges from time to time”,  Akutah said.
He said  that there was a need to continue to work with port operators to stop delays and eliminate high costs to make the port efficient.
Also speaking, the Deputy Director, Stakeholders, Service, NSC, Mr Celestine Akujobi, said “the sensitisation exercise was important for the council to enable us bring all the port stakeholders together”.
According to him, this is to avoid challenges during the implementation of the council’s responsibilities.
“By the time we introduce sanctions on defaulters, no operators will complain that he or she is not aware of the registration.
“I’m happy with the turnout of this sensitisation. This shows that the operators are well informed of the statutory friction of the council as the port regulator.
“The final implementation will commence as soon as we discover that all the operators have keyed into the portal.
“We are engaging other ports across the country and we’re hopeful that before the last quater of 2024, the council will implement sanctions on defaulting operators”, Akujobi said.
Earlier, Vice Chairman, National Association of Government Approved Freight Forwards (NAGAFF), Dr Ifeanyi Emoh, said  port challenges were enormous, adding that they originated from some of the government agencies.

Emoh urged the council to look into regulating other government agencies, so that there could be a window through which they can collect port charges collectively instead of indiscriminately.

By: Chinedu Wosu

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Business

Chivita, Hollandia Reward Outstanding Trade Partners At Annual Conference

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Chivita| Hollandia (CHI Limited) leading fruit juice and value-added dairy manufacturer in Nigeria has rewarded its long standing distributors at the recently held 2024 Distributor Conference. The event with the theme, “Break Boundaries Exceed Expectations” served as a platform to recognise and reward the exceptional contribution of the distributors and wholesalers who play a critical role in Chivita|Hollandia (CHI Limited) success and business goals for the year.
The Distributor Conference was held in two sessions. While the morning session featured keynote addresses, industry insights and brand immersion experience, the evening session was a cultural display of elegance and funfair that culminated in the award presentation and recognition of the contribution the trade partners made to the company in the 2023 year under review.
A key highlight of the event was the award ceremony which acknowledged outstanding trade partners in various regions across the country. The awards recognized commitment, dedication, and outstanding performance in areas of sales growth, brand promotion, and market expansion.
Eelco Weber, Managing Director, Chivita|Hollandia (CHI Limited), stated that the company’s success story is incomplete without the strong partnerships it has built with trade partners. “Today, we celebrate not only the achievements, but the collaborative spirit that has made our growth possible” he said.
Bola Arotiowa, Chief Commercial Officer, Chivita|Hollandia (CHI Limited), in his statement revealed that, the event which was first of its kind will continue to be an annual meeting to enable the company work more closely with its distributors, share insights and action points, help the trade partners familiarize themselves with the company’s goals and objectives for each year, and serve as a driver for mutual success.
“Our distributors are the backbone of Chivita|Hollandia (CHI Limited). Their relentless efforts in distributing our products, promoting our brands, and expanding our reach across the nation is truly commendable. As the bridge between us and our valued consumers, it is very important to reward their hard work and dedication for being an essential part of the Chivita|Hollandia (CHI Limited) family. Together, we will continue to deliver great products to our conusmers which in turn will deliver value to them”, Mr. Arotiowa added.
Speaking at the conference, HajiyaBilikisuSaida, Chief Executive Officer of Smabirm Nigeria Limited, who won the Outstanding Distributor of the Year in North 1 region, and got a reward of two million Naira worth of Chivita|Hollandia (CHI Limited) products expressed delight at the company’s recognition, and stated that the awards served as a way to inspire distributors to do more and put in more effort, which in turn would help both the distributors and the company to grow.
Other outstanding performance distributors of the year rewarded with a two million Naira worth of Chivita|Hollandia (CHI Limited) stock include, Sunny Chuks Limited for East 1 region, MRS FA & Sons Limited for East 2 region, Hussakas Ventures for North 2 region, Rookee 1388 Ventures for Lagos 1 region, Pik N Pil Ventures for Lagos 2 region, FaithJoe Event Management Limited for West 1 region, and Progress Family Nigeria Enterprise for West 2 region.
The annual Distributors Conference aims to strengthen the bond between Chivita|Hollandia (CHI Limited) and its trade partners. This collaborative approach fosters mutual growth and ensures the continued success of the brands in the Nigerian market.
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Business

AXA Mansard Backs Female-Owned MSMEs With N1.4m Grant

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A global leader in insurance and asset management, AXA Mansard, has supported three female-owned MSMEs with business grants totaling 1.4 million to boost their operations.
This, the company said, is part of its commitment to women and the Medium, Small, and Medium-scale Enterprise (MSME) sector in the country.
The three businesses were successful at the International Women’s Day Pitch Competition, organised in partnership with SME 100 Africa in Lagos.
According to the Head of Marketing, AXA Mansard, Olusesan Ogunyooye, the competition, which is aimed at supporting female entrepreneurs in Nigeria, “is another way AXA is demonstrating its commitment to the causes of women and stimulating the MSME sector in Nigeria”.
The business pitch competition received numerous entries from women across different sectors, but after a rigorous selection process, shortlisted participants were selected to participate in the competition.
Ogunyooye said “the programme provided a unique opportunity for women from various works and socio-economic classes to showcase their innovative ideas and solutions in sectors such as food, tech, fashion, and fragrance, creating an atmosphere filled with excitement, enthusiasm, and a strong sense of community”.
He stressed the importance of investing in women, saying it is not just the right thing to do, but also aligns with AXA’s purpose of acting for human progress.
He explained that AXA believes the future of women should not be at risk, hence investing in their economic empowerment is a crucial part

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