Barge Operations Should not be About Revenue Generation—-Customs

By DAPO OLAWUNI

The Nigeria Customs Service has cautioned all port operators in charge of barge operations in Nigeria against the trend of prioritizing revenue generation rather than trade facilitation.

Customs Area Controller, Tin Can Island Port Command, Compt Dera Nnadi stated this on Thursday while delivering a paper on “The Role of Nigeria Customs Service in the Evacuation of Cargo from Seaports to the Hinterlands ” at a one-day stakeholders summit organised by the Nigerian Shippers Council in Apapa, Lagos.

Statutorily, the Federal Government agencies regulating barging activities at the ports include; Nigerian Ports Authority (NPA) National Inland Waterways Authority (NIWA) and the Nigerian Maritime Administration and Safety Agency (NIMASA)

Compt Nnadi argued that when the memo for the use of waterways evacuation of cargoes was conceived and written, it was with a mindset of easing the traffic gridlock which had bedevilled the port access roads.

However, few years down the line, DAILY TREND learnt that among other requirements, the NPA alone has put in place, a bond requirement of N50 million for barges operating within Lagos Pilotage District; N150million for those operating across the port, and N250 million for those operating across the borders.

NIMASA on its part requires barge operators to collect Debit note from the desk officer in charge of Debit Note for N110,000.00 for a form B1, while N100,000.00 is charged as registration fee.

According to the Barge Operators Association of Nigeria (BOAN) barge operators charge importers N300,000 to N400,000 to move a container from the port to its destination, while paying over N150,000 charges to terminal operators, out of the amount the importer pays to transport his goods.

Speaking at the Shippers Council function however, Compt Dera Nnadi said “When we initially wrote the memo regarding the evacuation of cargo through the waterways, the idea was to evacuate cargo and ease port congestion due to closed access roads. However, converting this process into a revenue-making activity is detrimental to trade facilitation.

“I believe we should focus less on revenue-making and more on regulation to facilitate cargo evacuation” he said

The Shippers Council stakeholders summit which brought together various regulatory bodies, customs officials, and maritime operators, revolved around the challenges and opportunities in cargo handling, infrastructure, and the overall logistics ecosystem.

Compt Nnadi in his presentation raised concerns on persistent coordination challenges between the Nigerian Railway Corporation and bonded terminals, particularly regarding cargo handling equipment.
“Coordination with customs is crucial, which is why we have tools like; Advanced Rulings, Pre-arrival Assessment Reports, and opportunities for pre-release of cargo.”

He further appealed to importers to take advantage of these opportunities to clear their cargo even before arrival, thereby reducing delays.

The customs boss also stressed the need for improved supply chain integrity, urging stakeholders to optimize documentation, compliance, and coordination among logistic providers. “Once we optimize our integrity, particularly regarding documentation, compliance, and coordination, the stories about delays in our ports will become a thing of the past,” he asserted.

On port infrastructure and utilization, he commended the recent efforts to clear the congested port access roads from Mile-2 to Tin Can Port, a problem that had persisted for over 13 years.

The achievement according to Nandi can be attributed to discipline rather than any extraordinary measures. He said that despite this success, the underutilization of port infrastructure remains a concern.
“I am happy that the new managing director of NPA has paid unscheduled visits to the ports to see the extent of the port infrastructure

“In some ports, infrastructure remains underutilized, which affects revenue collection. The government should reinvest a portion of the revenue collected through the ports back into port infrastructure to assist those of us working there and motivate us to collect more,” the official suggested.

On the issue of storage space and the management of empty containers, Compt Nnadi called on terminal operators and shipping lines to make concerted efforts to evacuate empty containers that occupy valuable space.

“If not evacuated, these containers may need to be revisited for duty assessment,” he warned, highlighting the potential financial implications of inaction.

Security and 24-Hour Operations

Security along the Port Corridor has improved, especially with the automation of port access, which reduces unauthorized entry.

Compt Dera Nnadi encouraged stakeholders to have confidence in importing cargo around the clock, provided the Port Corridor continues to see enhancements in lighting and security.

He praised the efforts of the Minister of Transport, the Nigerian Ports Authority, the Ministry of Works, and the Nigerian Customs Service in improving these conditions.

He called for a shift in mindset towards continuous port operations, akin to those at airports.

He noted, “The proof of this approach is in the improved services that can be achieved when we all do what is expected of us,” urging stakeholders to adopt a 24-hour work mentality to enhance port efficiency.