Editorial Covid-19: Mulling the Way Forward for Maritime Sector
SHIPPING DAY EDITORIAL
The year 2020 is indeed a hard one for Nigerians. The coronavirus pandemic, otherwise known as COVID-19, came too early in the year and compounded economic issues for many. But the worst aspect is that no one knows when Nigeria and the rest of the world will be truly free from the scourge. The world economy is already on its knees following the effect of the virus. Oil revenue from which Nigeria had hoped to finance its 2020 budget has crashed to about $30 per barrel. State governments which have all along relied on monthly subventions have all cried out and must have to come up with economic strategies for survival. Various sectors of the economy are not left out as they have all been affected. Millions of jobs are being threatened in the private and public sectors. Vice President Yemi Osinbajo recently gave a strong indication that the unemployment rate in Nigeria may hit 39.4m or 33.6 per cent by December this year as a result of the coronavirus pandemic.
Osinbajo in a report by the Economic Sustainability Committee (ESC), which he chairs said there is likely to be a monthly oil revenue loss of N185bn.
He made it clear that Nigerians will slide into extreme poverty by the time coronavirus ends with a fall in the gross domestic product (GDP) to -4.40 per cent and minus -8.91 per cent .
What the above scenario means is that there must be a new strategy to survive for everyone. Such strategy may depend on each sectors of the national economy.
For the maritime sector, there has to be a change of style. Incidentally, the maritime sector is adjudged as next to oil in terms of contribution to the national economy. Many believe that the sector can generate as much as N7trillion annually to the national economy. How to realise this remains what industry stakeholders should work out. This should be through collaboration between the public and private sector operators. Perhaps, this is the best time for the government to come up with a strong political will to ensure that the National Single Window finally takes off. The much talked about project is over a decade with the Nigeria Customs Service (NCS) incharge yet without serious effect. In 2016, the present administration had given a fresh approval for the project, yet the situation remains the same. The Customs claims there is National Window in place, but practically this is not effective. The National Window of our dream should involve all the operations of government agencies, shipping companies, terminal operators, freight forwarders, truckers, among other service providers. They are to be integrated into one-stop-shop as obtains in other climes. Available statistics show that Nigeria is the only country in West Africa whose Single Window project is yet to be completed. This is sad considering the fact that Nigeria is a big trading nation.
Single Window project apart from improving on trade facilitation will also lead to more revenue. With automation in the ports, one expects that part of this project will involve an effective cargo delivery system, including scanners and Cargo Tracking Note (CTN). When scanners are deployed to cover all aspects of cargo delivery with CTN, there will be seamless operations. Automation will rid the ports of physical contact between customs officials, other government agencies in the ports and freight forwarders. Part of this will be a reorientation on the shippers and their freight forwarders to prepare for change which includes shunning fraudulent practices in which they are forced to bribe customs officials before their goods are released. Customs officials and personnel of other agencies angling to be in the ports should be part of this reorientation to accept such change and not sabotage it. With automation, and CTN in place, fraudulent imports will be checked, a development that will lead to more revenue and efficiency in the ports.
The year 2020 is indeed a hard one for Nigerians. The coronavirus pandemic, otherwise known as COVID-19, came too early in the year and compounded economic issues for many. But the worst aspect is that no one knows when Nigeria and the rest of the world will be truly free from the scourge. The world economy is already on its knees following the effect of the virus. Oil revenue from which Nigeria had hoped to finance its 2020 budget has crashed to about $30 per barrel. State governments which have all along relied on monthly subventions have all cried out and must have to come up with economic strategies for survival. Various sectors of the economy are not left out as they have all been affected. Millions of jobs are being threatened in the private and public sectors. Vice President Yemi Osinbajo recently gave a strong indication that the unemployment rate in Nigeria may hit 39.4m or 33.6 per cent by December this year as a result of the coronavirus pandemic.
Osinbajo in a report by the Economic Sustainability Committee (ESC), which he chairs said there is likely to be a monthly oil revenue loss of N185bn.
He made it clear that Nigerians will slide into extreme poverty by the time coronavirus ends with a fall in the gross domestic product (GDP) to -4.40 per cent and minus -8.91 per cent .
What the above scenario means is that there must be a new strategy to survive for everyone. Such strategy may depend on each sectors of the national economy.
For the maritime sector, there has to be a change of style. Incidentally, the maritime sector is adjudged as next to oil in terms of contribution to the national economy. Many believe that the sector can generate as much as N7trillion annually to the national economy. How to realise this remains what industry stakeholders should work out. This should be through collaboration between the public and private sector operators. Perhaps, this is the best time for the government to come up with a strong political will to ensure that the National Single Window finally takes off. The much talked about project is over a decade with the Nigeria Customs Service (NCS) incharge yet without serious effect. In 2016, the present administration had given a fresh approval for the project, yet the situation remains the same. The Customs claims there is National Window in place, but practically this is not effective. The National Window of our dream should involve all the operations of government agencies, shipping companies, terminal operators, freight forwarders, truckers, among other service providers. They are to be integrated into one-stop-shop as obtains in other climes. Available statistics show that Nigeria is the only country in West Africa whose Single Window project is yet to be completed. This is sad considering the fact that Nigeria is a big trading nation.
Single Window project apart from improving on trade facilitation will also lead to more revenue. With automation in the ports, one expects that part of this project will involve an effective cargo delivery system, including scanners and Cargo Tracking Note (CTN). When scanners are deployed to cover all aspects of cargo delivery with CTN, there will be seamless operations. Automation will rid the ports of physical contact between customs officials, other government agencies in the ports and freight forwarders. Part of this will be a reorientation on the shippers and their freight forwarders to prepare for change which includes shunning fraudulent practices in which they are forced to bribe customs officials before their goods are released. Customs officials and personnel of other agencies angling to be in the ports should be part of this reorientation to accept such change and not sabotage it. With automation, and CTN in place, fraudulent imports will be checked, a development that will lead to more revenue and efficiency in the ports.
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