Bonded Terminals in Nigeria: A Sector Plagued by Inadequate Facilities and Underutilization
The Nigerian bonded terminal sector, a crucial component of the nation’s import and export infrastructure, is facing significant challenges that hinder its optimal performance and contribution to the economy. These challenges primarily revolve around a lack of basic operational facilities and underutilization of existing capacity, issues that directly impact the efficiency and effectiveness of cargo handling and customs processing. Mr. Haruna Omolajomo, Secretary-General of the Association of Bonded Terminal Operators of Nigeria, has highlighted the severity of these issues, painting a concerning picture of a sector struggling to fulfill its potential.
One of the most pressing issues is the lack of essential facilities at a substantial number of bonded terminals across the country. Omolajomo estimates that approximately 30-40% of these terminals lack the basic infrastructure necessary for effective operations. This deficiency translates into operational inefficiencies, delays in cargo processing, and ultimately, increased costs for importers and exporters. The lack of proper facilities can also compromise security and safety protocols, potentially leading to damage or loss of goods. This situation undermines the very purpose of bonded terminals, which are designed to facilitate the smooth and secure movement of goods in and out of the country.
Further exacerbating the problem is the significant underutilization of existing capacity. According to Omolajomo, bonded terminals in Nigeria are operating at less than 10% of their capacity. This underutilization represents a substantial loss of potential revenue for terminal operators and the government, as well as a missed opportunity to enhance the overall efficiency of the nation’s trade and logistics infrastructure. The reasons for this underutilization are multifaceted, ranging from the lack of essential facilities to regulatory bottlenecks and limited access to funding.
Adding to the complexity of the situation is the prevalence of bonded warehouses being misclassified as bonded terminals. Omolajomo points out that many facilities operating under the designation of “bonded terminal” are, in reality, bonded warehouses, which lack the necessary infrastructure and operational capabilities of true bonded terminals. This misclassification creates confusion and ambiguity within the sector, further contributing to the inefficiencies and operational challenges faced by legitimate bonded terminals.
The recent directive by the Comptroller-General of Customs to ban bonded terminals from clearing imported pharmaceutical products has further complicated the operational landscape for these facilities. While this directive may be aimed at ensuring greater scrutiny and control over the importation of sensitive pharmaceutical goods, it also restricts the operational scope of bonded terminals and potentially adds to the existing challenges they face. Omolajomo clarifies that this directive is not entirely new, explaining that pharmaceutical products have been subject to stricter regulations and oversight for a considerable period.
The rationale behind the directive stems from the need for more thorough examination of pharmaceutical products to ensure quality and safety standards. Bonded terminals, unlike designated premier ports, may not always have the necessary agencies and resources in place to conduct comprehensive inspections of these sensitive goods. Therefore, the directive mandates that pharmaceutical products be cleared at premier posts where 100% examination can be conducted, safeguarding public health and preventing the entry of substandard or counterfeit medications into the country.
In conclusion, the Nigerian bonded terminal sector faces a confluence of challenges that hinder its growth and effectiveness. The lack of basic facilities, underutilization of capacity, misclassification of bonded warehouses as terminals, and regulatory restrictions, all contribute to a complex and challenging operational environment. Addressing these issues requires a multi-pronged approach involving investment in infrastructure, streamlined regulations, improved access to funding, and a clear distinction between bonded terminals and bonded warehouses. By tackling these challenges effectively, Nigeria can unlock the full potential of its bonded terminal sector and contribute to a more robust and efficient trade and logistics infrastructure.
