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Farinto Identifies Barriers To Intra-African Trade

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Former Acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Kayode Farinto, has identified concealment of information as one of the stumbling blocks to the successful implementation of the Africa Continental Free Trade Area (AfCFTA) in Nigeria.
Farinto stated this in a paper titled, “AfCFTA: Dismantling Trade Barriers, Navigating Regional Trade”, which he delivered at the 2024 MARAN Annual Maritime Lecture, MAMAL, held in Lagos on Thursday, said pretending that all was well when it was not true would be the greatest undoing to Nigeria as country in maximizing the benefits inherent in the continent-wide trade.
According to him, “Nobody expected a hitch-free take off but we should stop pretending and deceiving all Nigerians as if all is well. We are all aware of the controversy surrounding the first shipment under AfCFTA where, according to Mr. Segun Olutayo, leaders of the AfCFTA Coordination Office in Nigeria endeavoured to window-dress this controversy by saying that receiving Certificate of Origin under AfCFTA is only a preliminary step akin to a starting point and does not necessarily indicate that a shipment has been made.
“It’s high time we stopped this our attitude where we conceal and distort real information to confuse and convince Nigerians that all is well when we know that with speaking out, people can profer solutions to whatever problem that arises.
“Giving out accurate information is one of the factors that can make AfCFTA a success (through information management).
“Concealing information from the public is not part of good information management and it runs negatively against the Freedom of Information Act. There’s nothing wrong with confirming to stakeholders when issues go wrong. All that is needed is allay their fears that whatsoever that is wrong can be corrected”.
He stated that if the Africa Continental Free Trade Area must succeed, the Nigeria Customs Service (NCS) must play a pivotal role in this, adding that one of the things that must be done was to ensure that trade was facilitated.
He said, “I watched with keen interest, Nigeria’s participation in the Biachara Africa 2024 Summit in Kigali where Nigeria businesses showcased their offering and was also delighted to hear a commital statement from the Comptroller General of Customs of the NCS, promising to ensure that trade facilitation becomes the focal point of the Service going forward, which has obviously been downplayed before now.
“It is not out of place for NCS to roll out her Standard Operating Procedure, SOP for AfCFTA.

“However, I am glad to inform this gathering that the NCS, for once, seems serious about facilitating good trade. I rely on a recent circular released to her officers to ensure that issues of alerts are not only streamlined but its incessant be addressed where every Deputy Comptrollers in charge of revenue has been given a marching order to ensure compliance by their officers.

“What is only needed to be added is sanctions for non-conformists. If this is achieved, the major monster that can kill the Africa Continental Free Trade Area agreement has been successfully eliminated”.

Insisting that the Nigeria’s maritime sector had not fared well in logistics management, he blamed it on the nation’s inability to embrace multi-modal transport system, noting that Nigeria’s reliance on road sector alone was a stumbling block and a barrier to free flow of trade.

“The Ministry of Marine and Blue Economy needs to liaise with the Ministry of Trade either on a Private Party Agreement (PPA) or taking it as her core responsibility to ensure that our over reliance on road is stopped.

“There is need for rail connectivity between the hinterland and our ports. Barge operation should be employed to reduce the congestion and traffic on road and to save time for the success of the Africa Continental Free Trade Area Agreement”, he said.

Noting that non-tariff barriers including technical barriers were very many in Nigeria, Farinto said virtually all federal government regulatory agencies had one fine or levy which he said was killing trade.

“Take for example, a regulated item by either SON or NAFDAC must pay many levies or taxes such as import permit, MANCAP, money for examination to be conducted, fees to be paid before labelling rights are granted”, Farinto said.

Earlier in his welcome address, the President of the Maritime Reporters’ Association of Nigeria (MARAN), Mr. Godfrey Bivbere, who acknowledged that AfCFTA represented a groundbreaking initiative by the African Union, designed to create a single market for goods and services, promote free movement across borders and unlock the immense economic potential of the continent, however, identified barriers such as inadequate infrastructure, regulatory bottlenecks and operational inefficiencies as hampering the seamless flow of goods across the continent.

He, therefore, said for Nigeria to maximize the benefits of AfCFTA, it must address critical requirements including: Improved Trade Infrastructure -Enhanced Roads, Transit Trailer Parks, and functional scanning facilities at ports; Efficient Procedures – Compliance with Rules of Origin (RoO) and streamlined export processes as well as Capacity Building – Training Customs officers and other stakeholders to align with AfCFTA protocols.

Others, according to him, include investment in maritime assets: “with intra-African freight expected to increase by 28% and maritime demand by 62%, we need significant investments, including the addition of 100 vessels to facilitate transport as well as Leveraging Technology and Innovation to Facilitate Trade.

“As laudable as AfCFTA is, some persons in Nigeria are worried that our lack of infrastructure (mainly energy and road) and inconsistent policy will continue to affect our production level.

“They are concerned that as a result of our low production capacity, our initial gain of shipment outside the country may fizzle out when other African countries with better production environment begin the shipment of their goods, while Nigeria may end up becoming a dumping ground”.

By: Stories by Nkpemenyie Mcdominic, Lagos

 

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Maritime

MMS Customs Generates N144.2bn In 10 Months 

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The Murtala Muhammed Area Command of the Nigeria Customs  Service (NCS) under the leadership of Comptroller Michael Toyin Awe, has generated a total sum of N144,202, 566, 975.00k from customs duties and other charges, between January and October 2024.
Meanwhile, the revenue collected in the same period in 2023 stood at N74,286,707,443.00, showing a progressive difference of N69,915,859,531.00k, depicting 94 per cent increase.
The Customs Area Controller said the efforts to combat illicit trade has yielded impressive results, with total Duty Paid Value (DPV) of seized items amounting to N3,322,239,355.00 between July to October 2024.
The seized items, according to the report, contravened some of the provisions of the extant laws as enshrined in the Nigeria Customs Service Act 2023.
These items included 23 pieces of walkie talkies, 175 pieces of military helmets, 50 pieces of drones, 10 packs of Canadian cannabis sativa, 250 pieces of live turtles, 7 packages of 200mg & 225mg of tramadol hydrochloride, 1.5kg of pangolin scales, and 0.2kg of porcupine pins.
He attributed this achievement to enhanced trade facilitation, improved stakeholder compliance, effective law enforcement, strategic resource deployment, interagency collaboration, efficient cargo clearance and intelligent risk management strategies.
He said, in order to boost revenue collection, facilitate legitimate trade and curb smuggling, the Command has implemented initiatives such as streamlined clearance procedures, enhanced cargo inspection and examination, improved intelligence gathering and sharing, collaboration with other security agencies, and regular stakeholder engagements.

In order to move forward, he noted that the Command will enhance trade facilitation measures, strengthen anti-smuggling efforts, improve stakeholder engagement and leverage on technology for efficient operations.

Awe expressed appreciation to the Comptroller-General of Customs, Bashir Adewale Adeniyi, and his management team for their unwavering support in carrying out official tasks effectively.

In a similarly development, he commended officers and men of the command for their hard work and dedication towards achieving this great feat.

He also recognized the critical stakeholders, including importers, exporters and clearing agents, for their cooperation and compliance to extant laws.

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Maritime

FG To Revive Burutu Port Moves To Facilitate Solid Mineral Export

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The Federal Government, through the management of Nigerian Ports Authority (NPA), has assured of providing the technical guidance and allied support necessary for operationalisation of Burutu Port in Delta State.
Managing Director/CEO of the NPA, Dr. Abubakar Dantsoho, gave the assurance when he received the Chairman and Executives of Akewa Colmar Terminal Limited (ACTL), the concessionaire of Burutu Port last Thursday at the NPA headquarters in Lagos.
Speaking during the meeting, Dantsoho said, “to deepen our competitiveness, we must deepen our capacity to attract and retain huge investments in our Port infrastructure.
“I say this in view of the transformational developments being witnessed in the maritime countries along the coast of West and Central Africa.
“Whilst we are working assiduously to optimize the Warri channel, we cannot allow the potential of the navigable waters around the Delta Port clusters which can bolster Nigeria’s solid minerals export go to waste.
“We, therefore, set to progress this auspicious project to its next milestone once the report of the technical team is submitted in two weeks”.
Located at the coastal end of the River Niger with linkages to other ports along the Niger/Benue Rivers, Burutu Port was Commissioned in 1887 as the first modern Port in Africa, and was the main logistics port for British trade with Nigeria.
The Port became moribund after the civil war but was given a Master Concessionaire status by the NPA pursuant to approvals from the Infrastructure, Concession & Regulatory Commission (ICRC) and Federal Executive Council (FEC).

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Maritime

MOWCA Set To Actualise Effective Regional Maritime Funding 

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Rising from a three-day workshop in the Republic of Congo, the Maritime Organisation of West and Central Africa (MOWCA) has been mandated by member states and experts to commence a processs of sensitisation for uniform application of Regional Maritime Fund policy effective January 2026.
MOWCA’s Secretary General, Dr. Paul Adalikwu, was mandated to lead an awareness campaign to the 25 member countries throughout 2025, in order to ensure the full implementation of the Regional Maritime Fund (RMF) from January 1, 2026
Member countries recalled that the RMF mechanism, approved by the MOWCA General Assembly in 1999, aimed  to enhance maritime sector financing across the countries and facilitate the Maritime Administration’s ability to implement national policies and support regional projects on an 80-20 basis on $3 per metric tonne of cargo carried.
It is to be generated through a levy on shipowners operating in the West and Central African subregion as a self-financing model that allocates 80% of collected funds for the country of transaction and 20% for MOWCA
Speaking on the development, Dr. Adalikwu described sustainable maritime funding as a prerequisite to building a verile blue economy capable of supporting national development
According to the SG, not funding the maritime sector but expecting gains from it is like having a perfect automobile without fueling but wishing it takes you to your destination
He added that the gap for the many years  MOWCA countries didn’t do funding according to the extant rule caused a setback in maritime development, but expressed optimism in overcoming the challenges where there is cooperation and support.

Adalikwu listed derivable gains from the funding, when implemented, to include improvement in maritime infrastructure; rapid development of maritime expertise through training and retraining; proper harnessing of marine endowments for environmentally friendly and sustainable economic activities; evolving a development of blue economy across member countries in line with international best practice.

The MOWCA SG lauded member states that have been contributing to the financial sustenance of the organisation and urged others to emulate them.

He added that African countries with marine endowments and dry ports capabilities needed to give priority attention to multimodal transportation for ease of connectivity and movement of goods and services.

He stated that the MOWCA Secretariat is willing to support in technical collaboration and easy access to experts within the region for transfer of knowledge and training.

“The maritime industry is the driving force of global commerce and should not be given a backstage position during national budgeting by countries endowed as coastal states.

“It’s time African countries build capacities, acquire technology and ensure transfer of knowledge from the old to younger generation of maritime professionals and experts.

“As various member states push for their tailor made cabotage regime, I believe we can create a regional cabotage where businesses  citizens of MOWCA member countries enjoy priority opportunities ahead of foreigners as a way of creating a flourishing blue economy”, he said.

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