Isaac Anumihe
On Thursday May 18, 2017, the then Acting President, Professor Yemi Osinbajo, signed an executive order on transparency and trade facilitation in Nigeria.
The Executive Order (E001) was issued by the Presidential Enabling Business Environment Council (PEBEC) under the Office of the Vice President.
The order contained some measures to improve World Bank ratings on the Ease of Doing
Business (EODB) which was at its lowest ebb then.
The World Bank had rated Nigeria 120 out of 190 economies in 2008 reaching an all-time high of 170 in 2014 but nosedived again to 145 in 2017, thus prompting Osinbajo to issue the executive order.
The PEBEC recommended to the Vice President the need to slash the number of Federal Government agencies operating in Nigerian ports with duplicitous functions.
They include Standard Organisation of Nigeria (SON), National Agency for Food, Drugs Administration and Control (NAFDAC), Police, Port Health, Nigeria Customs Service (NCS), Nigeria Immigration Service (NIS), Nigerian Ports Authority (NPA), Nigerian Shippers Council (NSC), Nigeria Intelligence Service (NIS), Nigerian Agricultural Quarantine Service (NAQS), National Drug Law Enforcement Agency (NDLEA), Department of Security Service (DSS).
After a careful examination, Osinbajo, last month, excluded NAQS, DSS and NDLEA from operating in the ports.
The directive was followed by another order which made it compulsory for all the operators to resume a 24-hour operation in the ports. However, this has remained a tall order because no operator has implemented it.
The operators listed dilapidated roads to the ports; irregular electricity supply, corruption, insecurity, lack of scanners at the ports and shallow draft in the eastern ports as their key challenges.
A don at the Lagos Business School, Dr Frank Ojadi, however lamented that what is happening now is a reversal of the executive order.
He said that the terminal operators are willing to observe the 24-hour operation but a lot of infrastructure such as good roads, electricity and security are lacking in the ports.
“The 24 hours, with respect to the terminal operators, are able to observe the order and they are willing but with respect to government agencies, they have not met that 24 hours clearance of goods. Essentially, what it means is that it is not working because it requires all the key stakeholders to take active part. Let’s get it clear on one thing, I don’t think there will be any trucker that will get into the ports to move trailer out of the ports and go into Lagos streets by 2 am because of poor security. That is why that thing (executive order) will not work well. Clearly, the order still requires a lot more co-ordination for it to be effective but I know the terminal operators, particularly, the APMT and Tin Can are ready to carry out the 24 hours operation.
“With respect to the reduction of the number of government agencies, you will notice that they are all coming back. NAFDAC has gone back and SON has also gone back. So, clearly, what I am seeing is a reversal of the executive order on the ease of doing business with respect to reducing the number of government agencies in the ports. They will always tell you that they are checking the influx of tramadol into the country. But the fact remains that even the customs are equipped to check those things. Clearly, rather than seeing a reduction of the government agencies, we are seeing a reversal. This is what I call a policy somersault” he said.
In his own view, the Vice President of Association of Nigerian Licensed Customs Agents (ANLCA), Dr Kayode Farinto, remarked that the executive order is working theoretically but in practice, it is zero.
“The executive order on ease of doing business is not working because of two reasons.
“The Ministries, Departments and Agencies (MDAs) are doing what I will call a territorial protectionism. You know that the ease of doing business is affecting them one way or the other. So, they are protecting their territory be it customs, be it SON and all of them. It is a fact that NPA has been given the power to drive the executive order, it was not given the power to sanction erring operators. That is why they have not respected that order. The executive order on ease of doing business is working theoretically but practically it is zero.
“The government itself is not consistent. There is no consistent policy and it does not show that the government is even serious with the ease of doing business. All of a sudden you have ordered NAFDAC and SON to go back to the ports coupled with the fact that all the indices of making the executive order work are not there. The roads are not there. There is epileptic power supply to the ports. There is no good illumination to the ports. The importers bringing in the goods must be given incentives for them to see the reason they should patronise our ports. You cannot do the ease of doing business if you cannot call the stakeholders to a meeting. Corruption is embedded in the system. Government has given customs target and they want to meet that target by hook or crook. They coax people and arm-twist importers. So, the government has to wake up and be sincere if the ease of doing business must work” he submitted.
Recall that the ease of doing business index ranks countries against each other based on how the regulatory environment is conducive to business operation, stronger protections of property rights. Economies with a high rank (1 to 20) have simpler and friendlier regulations for businesses.