In this interview with LEADERSHIP, the chairman, House Committee on Ports and Harbour, Hon Garba Datti Mohammad is optimistic that efforts by the Nigerian Shippers’ Council (NSC) and Nigerian Ports Authority (NPA) will soon culminate in the reduction of high cost of doing business in Nigerian ports. He also spoke on the imposition of surcharge by international shipping agencies among others.
Foreign shipping companies slammed what is called peak season surcharge on Nigeria- bound cargoes recently, although, one of them, Maersk Line has reversed its own.The Nigerian Shippers Council and other stakeholders have rejected the surcharge, what step is you’re your committee taking to ensure this surcharges doesn’t stand?
We just wake up and found out that foreign shipping lines had introduced and imposed peak seasons surcharge on Nigeria-bound cargoes. The surcharge is so outrageous that it is about more than 400 percent higher than what it was. It was an increase from about $200 per container to $1,500 per container. What is the implication of this? It means surcharge will invariably affect the economy of Nigeria.
It is an act of sabotage by this foreign shipping companies because they cannot just wake up and unilaterally impose a surcharge without recourse to the regulatory agency of government in Nigeria, that is, the Nigerian Shippers’ Council.
There was a meeting by stakeholders recently: Manufacturers Association Of Nigerian (MAN), Lagos Chamber Of Commerce (LCCI) and the Nigerian Shippers’ Council and all of them rejected this new imposed tax. So, we as parliament have received some petitions in respect of this imposition of surcharge. We are reaching out already to all the shipping lines and once the House reconvene, we will invite them. Although they are foreign companies, they operate within the Nigerian territory. We have our own laws and apart from that, all of them have offices in Nigeria. We are also aware of an agreement that was reached in 2010 and 2012 and was signed between European community shipowner’s association and Union Of Africa Shippers Council that any form of imposition of tax or surcharge must be mutually agreed by all parties.
This will undermine the economy of Nigeria greatly, it will increase inflation, it will lead to job lost and even the revenue generated for government will go down.
Stakeholders have queried Nigeria’s lack of ocean-going vessels for the continuous surcharge. What are your plans to ensure that the committee set up by the Minister of Transportation to set up national carrier become a success?
Yes, it will be nice and it will even be better for us if we have our own national shipping line. We tried it in the past with the Nigerian National Shipping Lines. It collapsed like other companies in Nigeria that have gone down. I think the only thing the government can do is to encourage indigenous shipping companies to spring up and for those that are already in the market, there should be a palliative or a fund that will help in reviving the sector, it should be private-sector driven.
What legislative procedures are you putting in place to forestall further surcharge from various shipping firms
Like I told you earlier, all these international companies operating in Nigeria, most of them before coming here had already entered into treaties with Nigeria. Countries have conventions and treaties all over the world. Once the treaty is signed by all country and is domesticated by the National Assembly, it will become bidding on all member countries.
So as legislators, we have our own laws, if these treaties were not domesticated, we try and domesticate them. That’s why we always encourage that whenever there will be any protocol or any treaty to be signed, the National Assembly should be carried along.
How do you intend to ensure that the National Transport Commission (NTC) bill that was rejected by the president in the last assembly is assented to by the president?
In the 8th National Assembly, National Transport Commission (NTC) bill was passed by both chambers and had been transmitted to Mr President for his assets which he declined. I think it has been reintroduced now to the Senate. It has already passed the second reading. We are waiting in the House of Representatives for concurrence. When it is transmitted to us, we will now look at the Concurrence if there is adjustment, then we will call for conference between the two Chambers and agreed on a single clean bill and now forward to Mr President.
Nigerian ports is arguably the costliest in west and Central Africa, how will your committee intend to come to the aide of port users by reducing the cost of doing business at the port?
I think this government is doing a lot in that regard by putting so many things in place to make sure that all these charges are reduced so that we can encourage people to come and invest in this country. Cost of doing business in Nigeria will go down. The Nigerian Shippers Council(NSC) and the Nigerian Ports Authority (NPA) will make sure that the cost of doing business at the nation’s ports is reduced drastically.
Some stakeholders have pushed for automation at the nation’s ports, how do you think we can achieve this in order to reduce port congestion?
We have a mandate to convene meetings of all stakeholders on this issue of automation.We were in Lagos recently and visited all the terminal operators.We have seen where the problems are and are in contact with the Committee Of Customs on the need to have automation at the ports. The government has approved through the Nigeria Customs Service to buy scanners for TinCan Island, Apapa and Onne ports because what is causing these delays are physical inspection of containers. But when you have scanners, it will be faster.
Another important issue is the establishment of Inland Container Depots (ICDs). We already have ICDs in Kaduna, Ibadan and another one coming up in Kano, Jos and many parts of the country. I am sure that by the time most of these ICDs come into full operation, it will ease the congestion at the ports because instead of you going to the ports to clear your goods, you will go to ICD.
What has your committee been doing since you came on board?
We just came in about a year ago but we have been working closely with agencies of government. In whatever decision they want to take, we always ask them to liaise with us to work harmoniously. We are over sighting them but on key issues, they liaise with us and tell us the key issues they want to take and we make our inputs. For instance, on the issue of attracting ships to the eastern ports, we suggested to the agencies of government on giving the importers some incentives and they now agreed by reducing some of the charges. That is part of the things we do.
Apart from that, we also work as arbiter. In a dispute between the NPA and BUA Group, we were able to settle the matter amicably out of court.
– Leadership