Poor infrastructure and unfavourable trade policies have been identified as some challenges facing Nigerian ports.
The Managing Director of PTML Terminal,
Tin Can Island Port, Lagos, Mr. Ascanio Russo, said the challenges have
placed the ports at a disadvantage compared to the ports of neighbouring
countries.
Tin Can Island Port, Lagos, Mr. Ascanio Russo, said the challenges have
placed the ports at a disadvantage compared to the ports of neighbouring
countries.
Russo, who spoke in an interview in Lagos
recently, said that the level of infrastructure around the ports are
poor compared to the level of development inside the port.
recently, said that the level of infrastructure around the ports are
poor compared to the level of development inside the port.
“It is very sad in a way because while
the port operators have invested in the ports, and as a result have been
able to increase the capacity inside the ports, most of the
infrastructure around the ports have not been upgraded.
the port operators have invested in the ports, and as a result have been
able to increase the capacity inside the ports, most of the
infrastructure around the ports have not been upgraded.
“That is why we are now experiencing
this complete chaos, because basically, the roads have fallen apart, and
accessing the port area is really becoming a nightmare.
this complete chaos, because basically, the roads have fallen apart, and
accessing the port area is really becoming a nightmare.
“All these infrastructural
problems, including absence of functional rail line, I think, put the
Nigerian ports at a disadvantage compared to other ports in the region
because at the end
of the day, we benchmark against our competitors, which of course first
is the region.’’
problems, including absence of functional rail line, I think, put the
Nigerian ports at a disadvantage compared to other ports in the region
because at the end
of the day, we benchmark against our competitors, which of course first
is the region.’’
He explained that infrastructural
problem, aside, trade policies have not been particularly friendly to
the development of additional volumes of cargoes.
problem, aside, trade policies have not been particularly friendly to
the development of additional volumes of cargoes.
Russo noted that Nigeria is losing more
than half of its cargo to the port of neighbouring countries due to
unfavourable trade policies thereby causing huge revenue loss to the
government.
than half of its cargo to the port of neighbouring countries due to
unfavourable trade policies thereby causing huge revenue loss to the
government.
Russo, whose firm owns the biggest
terminal for vehicle importation in West Africa, complained that the
Federal Government’s National Automotive Policy introduced in 2013 to
encourage investment in local assembly plants has failed.
terminal for vehicle importation in West Africa, complained that the
Federal Government’s National Automotive Policy introduced in 2013 to
encourage investment in local assembly plants has failed.
The policy, he noted, was not adding any
value to the nation’s economy but has given rise to smuggling of
Nigeria- bound vehicles discharged at the Port of Cotonou through the
nation’s porous land borders.
value to the nation’s economy but has given rise to smuggling of
Nigeria- bound vehicles discharged at the Port of Cotonou through the
nation’s porous land borders.
According to him, “What we saw
immediately this policy was introduced was that duty was increased. We
saw an immediate diversion of cargo to Benin Republic and you know that
Cotonou especially has always been known for used vehicles,
which are smuggled to Nigeria.
immediately this policy was introduced was that duty was increased. We
saw an immediate diversion of cargo to Benin Republic and you know that
Cotonou especially has always been known for used vehicles,
which are smuggled to Nigeria.
“This auto policy made things worse.
After this policy, the volume of cars increased to 70 per cent all going
to Cotonou. Almost overnight, we saw a collapse of the number of
vehicles being discharged in the port and it’s almost
five years since this policy was introduced and it has not helped the
automotive industry in Nigeria.
After this policy, the volume of cars increased to 70 per cent all going
to Cotonou. Almost overnight, we saw a collapse of the number of
vehicles being discharged in the port and it’s almost
five years since this policy was introduced and it has not helped the
automotive industry in Nigeria.
“What we have seen rather is that used
vehicles are still coming to Nigeria through the border, one way or
another, and the sad thing is that the good quality vehicles are coming
through Cotonou.
vehicles are still coming to Nigeria through the border, one way or
another, and the sad thing is that the good quality vehicles are coming
through Cotonou.
This is because the level of duties is
much lower (in Cotonou) and so they can afford for them to be discharged
there while the old vehicles; the accident ones are coming to Nigeria.
much lower (in Cotonou) and so they can afford for them to be discharged
there while the old vehicles; the accident ones are coming to Nigeria.
“With the unfavourable trade policies,
sometimes it is very expensive to bring in some goods. You may want to
go through the back door because it is easier and it is cheaper, so I
will say that this is the reason why we have not
grown as much as we could have grown.
sometimes it is very expensive to bring in some goods. You may want to
go through the back door because it is easier and it is cheaper, so I
will say that this is the reason why we have not
grown as much as we could have grown.
“If everything was in place, if we have
favourable trade policies, we would have much more cargoes and much more
revenue for everybody.”
favourable trade policies, we would have much more cargoes and much more
revenue for everybody.”
