The Nigeria Customs Service (NCS) has issued a two-week ultimatum for the clearance of over 500 overtime containers and vehicles languishing at various Lagos ports. Failure to comply will result in the auctioning of these goods, a move sanctioned by the NCS Act 2023 and a court order. This decisive action aims to decongest the ports, facilitate trade, and generate revenue for the federal government. The affected cargoes are located at Apapa, Kirikiri Lighter Terminal, Ports & Terminals Multiservice Limited, and Tincan Island Ports, highlighting the widespread nature of the port congestion issue. The NCS emphasizes that this action is in line with the legal framework and provides ample public notice, ensuring transparency and fairness in the process.
This initiative aligns with the broader objective of streamlining port operations and improving trade efficiency, a key priority for the current administration. The formation of a dedicated committee to oversee the disposal of overtime cargo underscores the seriousness with which the NCS is approaching this challenge. The committee’s mandate is to expedite the removal of these long-standing obstacles to efficient port operations and implement the new provisions of the Customs Act, which mandates public auction or tender for the disposal of such goods. This approach ensures competitive bidding and maximizes potential revenue generation. The impending auction serves as a strong deterrent against the accumulation of overtime cargoes in the future, encouraging importers and agents to adhere to stipulated timelines.
The accumulation of overtime cargo has been a persistent problem at Nigerian ports, hindering operational efficiency and representing a significant economic loss. Some containers have been abandoned for over a decade, occupying valuable space and impeding the smooth flow of goods. The clearance of these containers signifies a significant step towards optimizing port capacity and facilitating smoother trade operations. The new Customs Act empowers the NCS to proactively address this issue, providing a legal framework for the timely disposal of overtime cargo. The two-week ultimatum serves as a final opportunity for importers and agents to reclaim their goods before they are forfeited to the government.
Stakeholders in the maritime sector have expressed mixed reactions to the NCS’s announcement. While some commend the initiative as a necessary step to decongest the ports and enforce regulations, others have raised concerns about the adequacy of the two-week grace period, particularly given the prevailing economic challenges. The fluctuating exchange rate is cited as a major contributing factor to the accumulation of overtime cargo, making it difficult for some importers to meet the financial obligations associated with clearing their goods. Suggestions have been made for the NCS to consider duty rebates or reductions to alleviate the financial burden on importers and further encourage compliance.
The Western Zone of the National Association of Government Approved Freight Forwarders (NAGAFF) has lauded the NCS for its proactive approach, viewing the two-week grace period as a gesture of goodwill. They acknowledge the legal basis for the forfeiture of overtime cargo and emphasize the importance of adhering to established regulations. This perspective highlights the need for importers and agents to take responsibility for timely clearance of their goods and avoid the consequences of non-compliance. The public auction process is seen as a transparent and fair mechanism for disposing of forfeited goods, ensuring that the government can recoup some of the lost revenue and free up valuable port space.
However, the Association of Registered Freight Forwarders of Nigeria (ARFFN) has expressed reservations about the adequacy of the two-week grace period, advocating for duty rebates or reductions to facilitate clearance. They argue that the prevailing economic climate, characterized by a fluctuating exchange rate, makes it difficult for some importers to raise the necessary funds within the stipulated timeframe. They propose that duty relief measures would be more effective in encouraging compliance and would provide much-needed financial support to struggling importers. This perspective highlights the need for a more nuanced approach that considers the economic realities faced by importers and strives to strike a balance between enforcement and facilitation. The debate underscores the complex interplay of factors contributing to port congestion and the need for collaborative solutions involving all stakeholders.
