By: Bisi Akingbade
The Nigerian Shippers’ Council, NSC, has assured the Manufacturers’ Association of Nigeria, MAN, that Nigerian shippers will not bear the burden of negative costs of the reintroduction of the Cargo Tracking Note, CTN,
This was made known by the Executive Secretary/Chief Executive Officer, NSC, Mr. Emmanuel Jime, at the meeting with some delegates from MAN, in his office, led by its former Vice President, Mr. John Aluya, and the representative of the Director-General. , Mr. Ambrose Oruche, Director of Corporate Affairs.
According to the Executive Secretary, the reintroduction of the CTN was “not fundamentally different from the previous operations of the system,” adding that “the cost-implication this time has been located in a way that does not do dramatic damage as far as the economy is concerned.”
Jime said that the understanding we have at the Nigerian Shippers’ Council is that this cost will not be borne by the Nigerian shipper, and that, for me, is the key with which we need to appreciate this.
“In the course of implementation, as nothing is perfect, especially when you are just starting, I believe we will see areas where there will be need for some twerking, and if that happens, we will be more than happy to address as the situations arrive. In the moment, I think the benefits far outweigh whatever disadvantages there may be.
The Executive Secretary insisted that the cost would actually be very minimal in the light of the enormous benefits that will accrue.
“This cost actually has always been in shipping charge, so it is not something really new.
“Beyond that, and most importantly, is to look at the real impact that this is going to have on the Nigerian economy, especially in the area of securing a nation, a lot more than we have done in the past.
“Part of the challenge we have had here is the proliferation of small arms around the country, some of which have actually found their way through the port, the reason being that we have not actually put a tool, like what we have now, that would enable us detect from the get-go of such consignments.
“If you put that side-by-side the minimal increase that this is going to bring, I think it will make more sense that we should be able to provide a secure environment that enables business to flourish. No one actually wants to do business in an environment of chaos, where there is insecurity. That is the balance we have to input in this discussion.”
He added that the theft of crude which is also a huge challenge as far as the nation’s resources are concerned, is also a variable that we must considered..
“I don’t really have the data, but it is not rocket science that the amount of crude that is stolen is sufficient to cause the kind of development that will develop our nation. These are some of the balancing factors that this is going to bring.”
He further listed “the phenomenon of under-declaration, which also has a negative impact on the economy,” as another motivation for its reintroduction, adding that that all these derivable positives balance out some cost-derivatives and whatever “very minimal increase you are going to have on the economy.”
Oruche stated that MAN is against the reintroduction of the CTN because its convinced that it would have negative effect on the economy, having already been embedded in the freight cost from the shipping lines. He explained that this position prompted its suspension in 2012.
He further stressed that if it was ever implemented before the suspension, it was not at any cost to shippers until this reintroduction, “so, if the shipping lines have embedded this along other costs, they should continue to bear it.
“They should not in any way transfer the cost of CTN to manufacturers or importers, because that will also have a negative impact on the economy. We are talking about the inflation rate: last month the rate increased, so, if you introduce more costs, what will happen to consumers?
“You and I will bear the brunt while foreigners are enjoying the money. So, that is why we are saying, let the charges remain as they are, even with the reintroduction of the CTN, or even reduce.”
He said that during the tenure of Mr. Hassan Bello as the NSC Executive Secretary, it was strongly argued that the CTN was already embedded in the freight charges and was not going to be at the expense of the importer/exporter, and “CTN was excluded from export.
“Then, on the basis of charges, it was argued that the CTN was already embedded in the shipping charges and that was why the shipping lines also raised an objection. However, it was agreed that the shipping lines would bear the charges.”
MAN also stands against the shipping lines systematically passing the burden to the shippers, while the NSC then assured that as the agency in charge of freight rate, it would control that.
MAN stated that Nigeria was already too expensive, and instead of being the hub of West African shippers, multiplicity of charges has made it so uncompetitive that the landlocked countries were using small countries, like Benin Republic, to bring in their goods.
“Where it is going to be introduced, let it be very marginal because the manufacturers’ ultimate aim is to make sure that Nigeria becomes the hub of West African sub-region, and if our cost keeps going up, we will be driving the landlocked countries from using our port.
“We don’t pay these bills directly, it is the ultimate consumer that pays the bill, but it is our duty to protect that ultimate consumer by making sure that our products are competitive.”