July 25, (THEWILL) – For the ports economic regulator, it is indeed a new dawn. The local slogan is: “government come, government go” in what describes change in every bureaucratic setting of the public service. Over a month ago, Barr Hassan Bello retired as the Executive Secretary of the Nigerian Shippers’ Council (NSC) with fanfare. In the same manner, another Barrister, Hon. Emmanuel Lyambee Jime, was appointed by the federal government to continue the mantle of leadership in the Council. With the pains of missing Bello for his 8 years of meritorious service, it is also with enthusiasism that the staff of the Council and industry stakeholders welcome his successor to the new seat. The job of the Executive Secretary of NSC carries a lot of weight and responsibility because of the peculiarity of the shipping industry often adjudged as a ‘mafia sector’ apparently because of the craze or intrigues to maximize profit by both the service providers and consumers of shipping services, including the policemen of the system at the detriment of the state. For Jime, the task has begun and he has so far demonstrated determination to deliver on various expectations. Looking at his background, Jime does not appear new for this type of task having been the Managing Director of the Nigeria Export Processing Zone Authority (NEPZA). He was former Speaker of the Benue State House of Assembly from 1992 to 1993 and member of the House of Representatives between 2007 and 2015.
Task
The key point of expectations from industry stakeholders is one of continuity on the statutory obligations of the ports economic regulator. Over the years and even on acquiring the status of the ports economic regulator, it has not been easy confronting the service providers for obvious reasons. Relying on the high level connection of their principals, some of the service providers could be difficult to regulate. This is the same for some of the government agencies who fall under port regulation as service providers. Among these agencies include the landlord, the Nigerian Ports Authority (NPA) and the Nigerian Customs Service (NCS) who deal with the terminal operators, shipping companies and the shippers as well. The NSC as umpire in the ports regulates these two agencies, among others to ensure smooth trade facilitation. Undoubtedly, most of them are difficult to regulate in view of their status in the industry. For any leader, a lot of wisdom is required to get them to flow along.
Cost of Doing Business/charges
The crux of most issues in the shipping industry has over the decades revolved around the cost of doing business. In the early days of the NSC, the statutory regulation has been to protect shippers from the shylock service poviders, mainly the multinational shipping agents and their conference liners. It was not until the ports were concessioned in 2006 that the NSC expanded its scope to also try to police the NPA as the landlord of the system. This was to protect the interest of terminal operators who are also under check against illegal shipping charges. This has been challenging from every indication because of what I had earlier pointed out in terms of the Nigerian factor which tends to weaken the power of regulation at some point and in respect of some particular operators.This has been the scenario in the case of NSC and the shipping service providers in respect of charges. While the agency may be willing to push the case, there could be instances of the lack of political will from the side of the presidency or other powers.
It had happended at one instance when the NSC at a stage as recounted by the former Executive Secretary, Chief Adebayo Sarumi, was asked to hands off a particular case against shipping companies over illegal charges. The decision was simply to protect political interest. In the current case between the Council and some service providers, it appears the latter are lucky. Having lost in the High Court and Appeal Court, the service providers had gone to the Supreme Court while continuing the collection of their charges which the Court had ruled against and ordered them to refund. The amount of refund runs into hundreds of billions of Naira. The Nigerian court system in addition to the Covid-19 crisis as well as the judicial workers industrial action for some months earlier may have been a blessing for the service providers. For more than three years, it has been speculated about planned settlement out of court between the parties in the case to no avail. Early this year, one of the parties in the case was said to have indicated interest in settling out of court with the NSC. The extent to which this has become a reality is not known. The new ES/CEO of NSC needs to understand the importance of the case. What this means is that the outcome is crucial and for the best interest of consumers of shipping services because of the issue of cost.
Cargo Tracking Note
Electronic Cargo Tracking Note Cargo (ECTN) was introduced and managed by the Nigerian Ports Authority (NPA) until it was suspended by the government. The suspension was as a result of costs associated with it. The federal government later changed its mind and reintroduced the policy but directed that it should be managed by the NSC. The CTN as it is popularly called which was earlier opposed now enjoys the support of many stakeholders. This is following the understanding that CTN remains a key factor in addressing issues of fraudulent practices in goods declaration and gross registered tonnage of vessels used in determining duties to be paid by importers and ships. There is the need for the new leadership of NSC to ensure its take-off.
Dry Ports/TTPs
The idea of Inland Dry Port (IDP) was conceptualized in 2005 as part of the efforts to bring shipping services closer to the hinterland. On the other hand, the Truck Transit Part (TTP) followed some years later in what was to rise to the challenges of infrastructure and lessen the burden of truck drivers involved transporting goods from the ports to different parts of the country.
In the case of dry ports, initially, there were six locations, but three more dry ports have come up, bringing the number to nine. The dry ports are to improve on trade facilitation for shippers who are not close to the seaports. Two of the dry ports are currently in operation. They include Kaduna Dry Port and Dala Inland Dry Port, Kano which was expected to start with skeletal services in June this year. The TTPs on the other hand are to serve as places of rest for drivers on far journey to deliver goods. Each TTP will serve as stop over where the driver could park and rest before continuing his journey. This is for safety reasons. It will have restaurants, lodging facilities and other facilities. Both dry ports and truck transit parks which will be under Public, Private Partnership (PPP) have potentials to create jobs and improve on trade facilitation in the country and should be taken seriously. To stakeholders, the economic value is enormous.
Port Process Manual
The introduction of the Nigerian Port Process Manual (NPPM) in December was part of the efforts of the federal government to achieve efficiency at the nation’s ports. It came some years after the introduction of the ease of doing business in every sector of the national economy, including the nation’s seaports. This time, the NSC was specifically singled out as the lead agency in the implementation. This means a lot of task for obvious reasons. So much fraudulent practices could be found in the ports. But the biggest problem is the delay in goods delivery, part of which could be for poor infrastructure. Other times, it could be for the reason that the importers failed to do the right thing in which they are expected to perfect to take delivery of their consignments. In the ports system, the importers are culpable for trade malpractices in terms of under-declaration, under-valuation and outright concealment in a bid to maximize profit. Personnel of agencies of government, such as customs officers who are supposed to check these malpractices are also culpable for the continued trade crime. The point is that the officers are easily influenced to look the other way while the fraud continues. Importers claim that even if they do the right thing, they will still have to settle customs officers and others at the ports. With the NPPM, the NSC is saddled with responsibility of addressing these problems because of its negative effect on trade.
The Council has been involved in enlightenment campaign to compel importers to end decades of fraudulent practices. The ports economic regulator has also been involved in getting the NCS to discourage their officers against corruption in the system which will go a long way in raising revenue from the ports. The NSC has been having an interface with the customs leadership on this. To ensure that there is an efficient service delivery at the ports, the NSC has also been having equipment audit on terminal operators to ensure that they provide modern cargo handling equipment. This will facilitate in fast discharge of vessels and position containers for examination by customs officers.
It is expected that the NSC under the new leadership sustains this effort as it will impact positively in creating efficiency at the ports. Similarly, protection of the shippers remains very paramount as their saviour remains the Council. Already, the NSC now has an Enforcement Unit which has been able to compel some shipping companies to refund arbitrary charges imposed on some shippers. The Council under Jime should continue on this path and advance further for the interest of the industry. In all this, there is the need to ensure that CTN which promises to aid in checking all fraudulent declarations, whether as it affects importers of ships should be deployed. This will also reduce the bribery and corruption in the system as a clean declaration on the part of the shipper will put him in a position to resist any attempt by customs officers to seek ‘settlement’ before treating documents for release of goods.
Jime
There is no doubt that Jime is equipped to do the job. But he needs advice where necessary. This was part of the secrets of Bello as he sought advice from predecessors and other industry experts on issues which guided him in reaching certain decisions. The Chairman of the Nigerian Ship Owners Forum, Barr Mrs Margret Orakwusi, who is also a member of the Board of Shippers Council, said such advice is necessary.
Orakwusi is of the view that when necessary, the new ES should reach out to Bello for advice. She said, “one good thing about Hassan is that he also shares his knowledge, he’s forever there to help. So, the new executive secretary is a lucky man to have taken over from Hassan Bello. I can tell you if he humbles himself and seeks advice from his predecessor he’ll make way”.
Orakwu also said she is optimistic that the new ES will not have problem as the personnel of the NSC is blessed with depth of knowledge as far as maritime is concerned and can offer advice when necessary.
She said, “NSC is the heartbeat of all other agencies in the Ministry of Transportation, technical and professionalism is their watchword. So, the new boss will be inheriting a huge staff, dedicated management staff and our guardian angel in the person of Hassan Bello will always be there to ensure that NSC be on that progressive path. So, that makes it easier for all of us”.
•Ugwoke is Editor-in-Chief, SHIPPING DAY NEWS/Online/Magazine
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