•Policy won’t incur additional charges for shippers, NSC assures MAN
By Steve Agbota, [email protected] 08033302331
The decision by the Federal Government to reintroduce Cargo Tracking Notes will address the issues of crude oil theft, check insecurity fuelled by sophisticated arms smuggled into the country through nation’s seaports, according to the Nigerian Shippers’ Council (NSC).
The CTN was previously introduced at the nation’s ports but it was greeted with so many challenges and was subsequently suspended in 2012.
But following the proliferation of small arms into the country, now fueling insecurity and loss of revenue at the nation’s ports, the Federal Executive Council recently approved the installation of Cargo Tracking Notes for in ports nationwide.
Daily Sun learnt that many African countries having CTN in use because it is the initiation of Union of African Shippers Council (UASC). Cameroun, Niger that are even landlocked and many other countries have Cargo Tracking Note. So, there is need for you to know what is coming to your country.
Following the approval of the reintroduction of the scheme, the Manufacturers Association of Nigeria (MAN) expressed their concerns that the technology should not incur additional charges for Nigerian shippers because the ports are already overburdened and overtaxed with multiple charges.
To address MAN’s concerns, the Nigerian Shippers’ Council cleared the air and said that the reintroduction of the CNT would not incur additional charges for shippers but would tackle several challenges such as theft of crude oil, proliferation of small arms, the under-declaration, concealment and wrong classification of important cargo and provide transparency in cargo invoicing when the technology is implemented.
The Executive Secretary, NSC, Emmanuel Jime who spoke when some executive members of MAN led by Mr. John Aluya, former Vice President of MAN, paid him a courtesy visit in Lagos, assured MAN that the cost would be in shipping charges.
Jime said the Cargo Tracking Note has ability to address the theft of the nation’s crude and curb other insecurity challenges posed by illegal importation of armaments.
“In the past, Cargo Tracking Note did not operate as well as wet cargo. The approval the FEC has given to Shippers’ Council include the monitoring of transport of the nation’s crude. The implementation being is that Shippers Council is now going to establish a mechanism that will assist the nation to trace crude theft and address it,” he said.
On the additional cost implications, he added: “The understanding we have at NSC is that this cost will not be borne by the Nigerian shippers. The cost implication has been located in a way that doesn’t do much damage to the economy. “However, manufacturers are within their rights to seek clarification and be informed on what is to be expected as far as International Cargo Tracking Notes (CTN) is concerned.” “The cost will be very minimal and let’s keep in mind that this cost has always been a shipping charge. It isn’t something that is really new. Nevertheless, we have to look at the real impact this will have on the Nigerian economy,” he explained.
However, he argued that the gains from CTN far outweighs the fiscal burden. He stressed that CTN will curb the proliferation of small arms in the country, especially for those conveyed via the ports.
“It makes more sense that with CTN we can secure ourselves because no one wants to do business in an environment devoid of security. On the issue of crude theft which is a huge challenge to the nation’s resources, CTN will also stop that. “One can argue that the amount of crude that has been stolen from Nigeria is enough to establish the kind infrastructural developments we want for the nation. The problem of undervaluation of goods is something that can also be curbed by CTN. These are some of the balancing factors that CTN is going to bring. With these immense benefits that will come to the nation’s economy from ICTN, you will agree that there are more reasons to introduce CTN than not to,” he said.
Jime also reassured MAN that the NSC would address the complaints and concerns raised about the reintroduction of the CTN as a major stakeholder in decision-making. “Director, you are absolutely correct, in the past the implementation of the CTN was met with a lot of misunderstanding.This is because the way the policy was conceived was not the way it was implemented and so the reason to express caution in the willingness for its introduction.
Speaking earlier, a former Vice President, MAN, Lagos Zone, Chief John Aluya, noted that the manufacturers’ ultimate aim was to make sure Nigeria become the hub of the West African sub-region, saying that if costs still grow up, Nigeria would be driving the landlocked country from using the nation’s port.
“We are here because of the reintroduction of the Cargo Tracking Note. Every issue of this nature has its own cost and we want to make sure that the port as we see that is already overtaxed, does not incur more cost.
“The executive secretary has made it easier for us that things will not happen without the manufacturers knowing and everything will be done with manufacturer’s contributions and impute, so our fears have been allayed.
“As a nation, Nigeria is supposed to be the hub of West Africa shippers but because of our multiplicity of charges we have become so uncompetitive. This has made the landlocked countries to use a small country like Benin Republic to bring in their goods instead of Nigeria because of too many charges.
“We must not add to the already overburdened cost of doing business at the Nigerian ports. We don’t pay these additional costs directly. It is the final consumer that pays because it would reflect on the final prices of our products,” he said.
He said reducing cost of doing business would enable Nigerian ports to be attractive to sailors and shippers.
Meanwhile, Director, Corporate Services Division, MAN, Mr. Ambrose Oruche, reaffirmed that the association was ready to bear the burden of the cost of the CTN.
Speaking further, he pointed out that in 2012 when it was first implemented, the consultant shifted the burden on manufacturers and they raised an alarm that made the Federal Government stop the implementation.
“During our various meetings, it was agreed that the CTN is impeded in freight charges and will not be for importers and exporters and export was excluded from the CTN. Nigeria is overburdened with high cost of doing business at the port, we need to reduce charges so that our port will be more competitive,” he said.