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Port chaos, trapped cargo fuel calls for National Single

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By Steve Agbota                                   

[email protected] 

Severe port congestion and delayed cargo clearance are driving up logistics costs in Nigeria and stakeholders are fingering the newly inaugurated National Single Window platform.

Though the federal government has appealed for waivers from shipping companies and terminal operators as a way of pacifying importers and agents, they maintained that a more strategic and sustainable solution remains a suspension of the scheme to allow room for an overhaul.

Currently, there is confusion in the port system with thousands of containers currently trapped across major ports and importers are incurring millions of naira in demurrage and storage charges on a daily basis.

This has compounded the already high cost of doing business in the maritime sector.

The mounting financial burden is also beginning to reflect in supply chain delays and potential price increases for goods in the domestic market.

Experts within the industry attributed the crisis to inadequate preparatory work prior to the launch of the initiative.

According to them, the committee overseeing the implementation failed to carry out comprehensive sensitisation and stakeholder engagement, leaving many operators unprepared for the transition.

They noted that a system originally designed to streamline trade and enhance efficiency has instead become a major bottleneck.

For instance, they queried that the single window they thought would facilitate trade has been a clog in the wheel of cargo clearance and evacuation at the seaport.

Further findings revealed that no fewer than 10,000 containers have been delayed due to persistent system integration challenges. Key regulatory agencies, including the National Agency for Food and Drug Administration and Control (NAFDAC) and the Standards Organisation of Nigeria (SON), are reportedly experiencing difficulties synchronising their processes within the new platform.

Confirming the development, an official of the Nigerian Shippers’ Council (NSC) disclosed that complaints from importers have surged since the introduction of the system.

According to the official who craved anonymity because she was not authorised to speak, the single window initiative has trapped thousands of containers at the ports.

“Cargoes are trapped, importers are accruing demurrage and storage charges from shipping Companies and Terminal Operators,” she stated.

However, stakeholders who spoke with Daily Sun urged the federal government to overhaul the system in order for clearing agents and importers to make cargo declaration, which has been halted for weeks.

Former Acting National President of the Association of Nigerian Licensed Customs Agents, Dr. Kayode Farinto, has called on the federal government to immediately suspend the newly introduced National Single Window (NSW) platform in order to address the glitches associated with the system.

Farinto expressed strong dissatisfaction with the system’s performance since its rollout on March 27, stating that stakeholders have been unable to carry out cargo declarations, one of the most fundamental processes in port operations.

“Ordinarily, when a new system is introduced, we expect some glitches. But what we are experiencing now goes beyond that, it is a total blockage. Since March 27, we have been unable to make any declaration. This is very unfortunate,” he said.

He described the situation as a full-blown crisis, noting that cargoes are piling up at the ports while importers continue to incur heavy demurrage and storage costs.

“People’s cargoes are trapped. Demurrage is accumulating, storage charges are increasing, and businesses are suffering. This is clearly a state of crisis,” he added.

The maritime expert further alleged that some agencies and service providers are taking advantage of the situation to increase their charges, worsening the burden on importers already grappling with operational delays.

According to him, the crisis highlights a lack of adequate planning and stakeholder engagement prior to the system’s launch.

He argued that critical players such as shipping companies and terminal operators were not properly integrated into the implementation process.

“These are issues that should have been addressed before the takeoff. You don’t roll out a system of this magnitude without proper alignment with stakeholders. Now the system is down, and authorities are looking for solutions after the fact,” he said.

Farinto also questioned the capacity of the Nigerian Shippers’ Council to resolve key aspects of the crisis, particularly in relation to securing compliance from international shipping companies.

“Shippers’ Council cannot compel shipping lines. What should have been done was consultation and collaboration before rollout, not after the system has already failed,” he noted.

Describing the development as a total collapse of the industry, he warned that the paralysis in port operations is already taking a toll on the Nigerian economy.

“This is a national emergency. The economy is at a standstill because port activities are blocked. Urgent decisions must be taken. There is no time for delays,” he said.

He estimated that losses incurred since the system’s introduction run into hundreds of millions of naira, with the risk of escalating further if immediate action is not taken.

To address the situation, Farinto advocated a temporary return to the previous system while the government works to resolve the challenges affecting the Single Window platform.

“They should suspend it immediately and revert to the old system. Let them fix the loopholes and reintroduce it properly, possibly next quarter. There is no shame in admitting challenges; what matters is protecting the national interest,” he advised.

He also reiterated the need for a strong legal framework to support the implementation of the Single Window initiative, noting that the absence of such a structure has contributed to the current challenges.

Calling for presidential intervention, Farinto urged President Bola Tinubu to act swiftly to prevent further economic losses and restore confidence in the system.

“Mr. President should intervene. The government has invested heavily in this project. It is a good initiative, but at the moment, it is not working. It should be suspended and properly re-strategised,” he said.

The National Single Window initiative, designed to streamline trade processes through a unified digital platform, has come under intense scrutiny following its troubled rollout, with stakeholders now urging the government to take decisive steps to restore normalcy at the nation’s ports.

Also speaking, a clearing agent, Osifo Nwadinamuo, described the single window initiative under the current committee as frustrating.

The frontline Customs licensed agent said it is too early in the lifetime of the Single Window to experience such hiccups that will frustrate trade and trap cargoes at the port.

He, however, warned that things may get worse in the coming weeks as the Single window committee is confused on how to solve the crisis bedevilling the initiative.

“The Single window project is a laudable project, it will facilitate trade and reduce the cost of doing business, but currently, as it is, the programme is not being handled as it should be,” he lamented.

According to him, the government must totally take control instead of leaving it in the hands of a committee who he said lacks basic knowledge of how the Single window operates in neighbouring countries.

Stakeholders warn that unless urgent corrective measures are taken, including system optimisation, stakeholder training, and clearer coordination among agencies, the policy risks undermining its core objective of trade facilitation.

There are also growing calls for a phased implementation approach and temporary relief measures to cushion the impact on importers.

A Customs broker and the Managing Director of Mikky Excellency Nigeria Limited, Alhaji Abdulazeez Babatunde Mukaila, said: “I’m one of the foremost enthusiasts that we’ve been waiting for this to come, to play. And I’m very enthusiastic and optimistic that whatever the snag is, we should be able to cook with it, at least for a start.

“But I’m highly disappointed that with all the hype and what I thought was a stakeholder engagement, which is not always done on many other rollouts, we are still at this level.

“It just shows that something is fundamentally wrong. And the earlier we admit it and go back to the drawing board, the better. Having said that, shipping companies and terminal operators are businessmen. They pay billions of dollars to take over Nigerian ports.

If you are in their shoes, would you take somebody’s stupidity and unpreparedness to rob off on your own business?

“How will you tell people to waive their overhead costs for a single window rollout where some people got money, claimed expertise, and then they messed everything up at the launch point? How do you take somebody to lose money because of your own laxity? If I were a shipping line, I wouldn’t waive a damn. I would not”.

He said the best thing that has happened so far was that stakeholders and other port users now know that there’s a problem, saying there is a need to go back to the drawing board, recalibrate, and take off the single window for now, for future dates, when we must have a package and amend all the hiccups that is now playing out.

Meanwhile, Mr Pius Amadi urged the Federal Government to suspend the National Single Window until the committee and the service in charge of the platform resolve the problems plaguing the system, saying the system is causing chaos and unbearable losses due to demurrage.

“Presently, the glitch in the NSW is causing congestion at the port, and shipping companies and terminal operators are not ready to bear the failure of another company. Don’t forget that these people are also businessmen who don’t want to lose a damn, and I wouldn’t blame them for that because they are in business to make a profit.

“What we are telling the government and Shippers’ Council is to put the NSW on hold for now because a lot of cargoes are trapped at the nation’s ports presently due to the failure of the system. Our importers are becoming agitated as their consignments incur demurrage daily, and we, as agents, are also affected because we can’t clear our clients’ cargoes. We all welcome and support the rollout of the NSW, but as it is now, we are disappointed with the rollout of the platform,” he said.

He said the government must act fast and ensure that this problem is resolved as soon as possible so that the cargoes that are trapped or stranded can be cleared and leave the ports.



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