Maritime
Cargo clearing delay worsens as Nigerian Customs’ PAAR fails
LAGOS-Eight months into the introduction of Pre-Arrival Assessment Report (PAAR) by the Nigeria Customs Service (NCS) following the takeover of the Destination Inspection regime from the private service providers, importers say the regime has failed since they now face tougher clearing processes at the ports.
They say the introduction of PAAR, which superseded the Risk Assessment Report (RAR) formerly issued by service providers, has failed to ease the clearing bottlenecks experienced by importers.
According to them, the dwell time of cargo now averages 21 days as against minimum of 7-14 days in the last regime, causing increasing demurrage and storage charges. This, they say, has increased cost of doing business at the ports.
Lamenting the incessant querying of PAAR document by Customs officers, Emmanuel Nwabunwanne, a Lagos-based importer, says cargo clearing at the ports has become more difficult in recent times as it now takes an average of one to two weeks to get a final clearing document from Customs.
Nwabunwanne says Customs has failed to keep to the initial promise of transforming and fast-tracking cargo clearance at the ports.
BusinessDay findings reveal that importers see huge difficulties in obtaining PAAR, which is supposed to be issued before the arrival of the consignment. The importers say they sometimes spend an average of five to 14 days after the arrival of the cargo to obtain the document from Customs.
According to them, PAAR was initially designed to be the final cargo clearing document but has now been reduced to an advisory document which can be questioned or rejected by another Customs officer, thereby subjecting the importer to another fresh clearing process.
Boniface Aniebonam, an industry analyst, says non-compliance to the rule guiding PAAR by consignees is the major reason PAAR failed to alleviate the challenges confronting cargo clearance at the port, while dishonesty and under-declaration are the reasons PAAR is not adding value to the clearing process.
Reacting to this, Wale Adeniyi, national public relations officer, NCS, admits that PAAR has become an advisory document due to reoccurring errors from issuing officers.
He, however, also blames the failure on under-declaration of imports by consignees who aim to short-change government.
Another reason PAAR has failed, Adeniyi says, is lack of technical know-how on the part of some officers. He adds that an importer has the right to appeal for adjustment if the cargo is overvalued and an officer also has the right to query PAAR after carrying out physical examination of the cargo.
Manufacturers in Nigeria have also continued to pick holes at the level of capacity gaps existing in the implementation of PAAR. They say this has continued to stall delivery of raw materials to various factories, thereby disrupting production timelines.
“When imported raw materials get stuck at the ports, it results in a stock-out of raw materials, which means that the internal stock level of the manufacturers will decrease, resulting to low production levels,” says Rasheed Adegbero, immediate past acting director-general, Manufacturers Association of Nigeria (MAN), in an interview.
Similarly, manufacturing exporters are worried that the scheme crimps export capacity of their products. According to them, constant delays emanating from the scheme often lead to loss of markets for their products, as customers often have to look for alternatives in other markets rather than continue to wait for made-in-Nigerian goods which take time to arrive.
They also add that the delays result in high demurrage and consequently high production cost, thus making it difficult for locally-made goods to compete effectively in the international market.
“At the end of the day, our operating costs rise owing to the demurrage. There have been cases where such delays resulted in shortage in supplies, which prompted our customers to look for alternatives. I will also emphasise that the tariffs have been high,” a manufacturing exporter, who prefers not to be named, tells BusinessDay.
Stakeholders also say the basic problem with the scheme is capacity gaps in the areas of infrastructure, information and communication technology (ICT) and human capacity, among others, insisting that such is an indication that the NCS is not yet on top of the situation.
“The issue is that the Customs are not on top of the situation. When you have PAAR and you do not have, maybe, infrastructure, human capacity or ICT, it means there are capacity gaps in the implementation process,” says Muda Yusuf, director-general, Lagos Chamber of Commerce and Industry (LCCI), in an interview.
BUSINESSDAY-
Stakeholders and experts in Nigeria’s maritime sector have expressed support for the Coast Guard Bill before the National Assembly, with many describing the proposed legislation as a boost to the federal government’s efforts in securing the maritime space.
At a public hearing convened by the Senate Committee on Marine Transport to discuss the bill for the establishment of the Nigeria Coast Guard (NCG), stakeholders presented varying views, with the majority supporting the creation of the NCG.
The majority of presentations voiced strong support for the establishment of the Coast Guard, with notable endorsements from prominent figures including Dr. Olisa Agbakoba, SAN; Dr. Ade Dosunmu, MON, former Director General of NIMASA; Mrs. Jean Anishere, SAN, representing the Nigeria Bar Association; and Rear Admiral Ekwerre U. Ekwerre (Rtd), former Flag Officer Commanding the Training Command of the Nigerian Navy.
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Dr. Olisa Agbakoba described the bill as timely but emphasized the need for professional input to address certain concerns within the draft. He expressed his willingness to assist in this process. Dr. Ade Dosunmu offered full support for the bill, suggesting that the Nigerian Navy should focus on blue-water operations and national defense against external threats, while the Coast Guard should address maritime crimes and incidents along Nigeria’s extensive 855-kilometer coastline using more adaptable resources. He referenced successful maritime nations such as India, Singapore, China, the United States, Japan, Egypt, Morocco, and the United Arab Emirates, all of which have well-defined roles for both the Navy and Coast Guard.
However, Dr. Dosunmu cautioned against assigning functions such as hydrography and oceanographic research to the Coast Guard, as these responsibilities are already managed by other agencies, and incorporating them could divert focus from the Coast Guard’s primary mission.
Jean Anishere, SAN, articulated her support for the bill while highlighting certain ambiguities that must be resolved before it can be enacted. She pointed out specific provisions in the bill that require clarification and further refinement.
Retired Rear Admiral Ekwerre U. Ekwerre addressed concerns raised by the Nigerian Navy and advocated that the Navy should concentrate on defense, showcasing military strength, and conducting diplomatic operations within territorial waters and the Exclusive Economic Zone (EEZ). He asserted that the Coast Guard should be responsible for enforcing maritime laws in the nation’s inland waters.
In summary, while the majority of stakeholders endorsed the establishment of the Nigeria Coast Guard, they also called for careful consideration of the bill’s provisions to ensure clarity and effectiveness in its implementation.
Innovative financing models have been identified as the vital catalyst for achieving sustainable development in the African Maritime industry.
The Director General of the Nigerian Maritime Administration and Safety Agency (NIMASA), Dr. Dayo Mobereola, made the declaration at the 7th Association of African Maritime Administrations (AAMA) conference in Dar es Salaam, Tanzania.
He assured attendees of Nigeria’s commitment to advancing a future where Africa’s maritime sector thrives sustainably.
In his words, “Nigeria is committed to collaborating on technology and innovation to enhance safety, security, decarbonization, and the marine environment for a sustainable future.”
According to him, the conference presents a pivotal opportunity to address our shared challenges, particularly those related to sustainable energy, regional security, and economic growth.
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“We are here to advocate for innovative financing models and international support that will facilitate sustainable growth. As Nigeria pursues infrastructure development and digital transformation within our maritime sector, we call on our regional and international partners to support these efforts through technical and financial backing.
“Our priorities at the AAMA conference include exploring collaborative avenues to enhance maritime safety and security. By reinforcing our adherence to frameworks like the Djibouti and Yaoundé Codes of Conduct, we aim to solidify Nigeria’s role in combating piracy and maritime crime across West Africa,” he stated.
The AAMA was established to lay a firm foundation for regular consultations, enabling African maritime administrations to build joint positions on issues of common concern in the maritime sector.
When Nigeria hosted the 3rd AAMA conference in 2017, a master plan was developed outlining the measures necessary to advance the maritime agenda as envisioned in the African Maritime Transport Charter. The Association has also created a platform to strengthen cooperation at the regional, continental, and international levels, harmonizing policies and goals essential for the growth of the African maritime sector.
The Honourable Minister of Marine and Blue Economy, Adegboyega Oyetola is of the view that a National Policy on Marine and Blue Economy is essential for the development of the Nigerian maritime sector.
Biztellers reports that Oyetola shared the view, on Tuesday, while declaring open a stakeholders’ validation session aimed at developing the National Policy on Marine and Blue Economy in Nigeria, in Lagos.
The former Osun State Governor emphasized that the National Policy will create a sustainable pathway for economic growth in fisheries, aquaculture, renewable energy, tourism, and seabed mining, while also ensuring environmental sustainability.
He further noted the need for a robust National Policy to address challenges in the sector, including environmental degradation and illegal activities such as Illegal, Unreported, and Unregulated (IUU) fishing.
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In his words, “A robust National Policy will ensure that we address these issues through a comprehensive framework that aligns with international best practices while safeguarding our marine resources for future generations.
“It is worth noting that Nigeria has achieved notable progress in maritime governance, including the ratification and domestication of international protocols and conventions. These measures have strengthened our safety and security framework, resulting in a remarkable three-year period with zero incidents of piracy in our waters. Nonetheless, the recurring boat mishaps underscore the pressing need for immediate action.
“This policy seeks to implement comprehensive strategies to ensure the safety of all waterways. However, challenges such as the recent spate of boat mishaps demand urgent attention. Consequently, this policy aims to establish comprehensive measures that will enhance safety across our waterways.
“As we develop this policy, the Ministry remains committed to repositioning Nigeria as a dominant player in the marine and blue economy, both regionally and globally. We are also pursuing Nigeria’s candidacy for election to Category C of the International Maritime Organization (IMO), which underscores our determination to strengthen our voice in global maritime governance”.
In his welcome address, the Permanent Secretary of the Ministry, Olufemi Oloruntola, noted that the validation workshop is a key step in shaping the National Policy on Marine and Blue Economy — a framework designed to address Nigeria’s specific needs and aspirations while embracing sustainable development principles. “It provides an opportunity for stakeholders to review, refine, and enrich the draft policy through a participatory and inclusive approach,” he said.
The draft policy, which consists of nine parts, offers an elaborate overview of our country’s marine and blue economic endowments and their current state. It affirms our mandate, vision, and mission, setting the stage for the policy’s objectives and aspirations. It further dissects these aspirations into five broad parts of legal and institutional framework; maritime transport, trade and shipping; fisheries and aquaculture; marine abiotic resources; and marine innovation and technology. It also identifies a range of cross-cutting issues and concludes with an assessment of stakeholders to support the implementation structure. Overall, it is a comprehensive document.
Also present at the event were the Chief Executive Officers of all the agencies under the Ministry, including Dr. Dayo Mobereola, Director General, Nigerian Maritime Administration and Safety Agency; Abubakar Dantsoho, Managing Director, Nigerian Ports Authority; Barrister Akutah Pius, Executive Secretary, Nigerian Shippers Council; and Bola Oyebamiji, Managing Director, National Inland Waterways Authority.
Other attendees included Funmi Folorunsho, President, African Shipowners Association; Engr. Greg Ogbeifun, Managing Director, Starz Marine; and the President, National Association of Stevedoring Companies, among other stakeholders.
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