Freight Forwarders Task Customs Service on Accreditation of 6 Inland Container Depots as Port of Destination, Origin

• Say transire operations with bonded terminals within ports environment being abused

By Francis Ugwoke

The National Association of Government Approved Freight Forwarders (NAGAFF) has called on the Board of the Nigeria Customs Service (NCS) to consider as a matter of urgency accreditation of six
Inland Container Depots (IDPs) as Port of Destination and Origin.

The Association said the six IDPs should come from the six geo-political zones of the country.
In a letter signed by the Head of Technical Team of NAGAFF,
Mr Patrick Ogbo, and addressed to the Customs Service, the association said the Customs Service should be “thinking seriously on how best they can handle avoidable revenue loss and inherent security risk to the Nigerian state and the abuse of transire operations of the service”.

The association said that having such IDPs in the zones will create not less than five million jobs for young freight forwarders in the country.
According to the association this would be better “instead of this avoidable urban migration most of them who cannot pay the high cost of rent can operate from their villages”.


The association further explains its reason for the request for the IDPs:

“For us, the establishment and approval of bonded terminals within the mother ports environment were a kind of intervention during the ugly incident of port congestion in the 1980’s.

“But we know that at the moment there is no port congestion in Nigeria and it stands to reason that we must think out of box to deploy the concept of bonded terminals to the zones of the federation officially and designated as ports of origin and destination

“It is also important that we draw the attention of the management board of the service the multiplier effect of accrediting of inland container depots as ports of origin and destination.

“And for the avoidance doubts transportation of goods and services across international boundaries are principally done through land borders, seaports and international airports

“Under the circumstances we do know that Nigeria established , operates and manage international airports of Lagos, kano, Abuja, Enugu and Rivers state etc across the zones of Nigeria

“The importance of these international airports across the zones of the federation can not be overemphasised in the area of movement of goods and services, trade facilitation, employment, revenue and security of the Nigerian state etc

“Nagaff strongly believe that the northern part of Nigeria in particular needed an inland dry port designated as port of origin and destination with rails linked to it from the mother seaports of Lagos, Onne and Warri axial in Delta state Nigeria

“Nagaff is greatly worried about the level of abuse inherent in transire application of cargo movement to bonded terminals with regard to revenue collection function of the service and security of the state. Most of the goods going up land regions of Nigeria are being diverted on transit and this is terrible to the Nigerian state generally in terms of security and revenue due to the government

“If we continue to pretend that we do not know Nagaff will not because we know that corruption at all levels in Nigeria is the greatest challenge in our country

“Therefore the mantra of renewed hope for a greater Nigeria of our dreams must be taken seriously to arrest the avoidable human element barriers against Nigeria greatness

“It is no longer a news that Nigeria is facing serious security challenges and something must be done urgently. We are aware of the difficulties in taking certain decisions of mitigating these challenges because of the interests of those concerned and most times in the high places of the economy

“In our opinion it is to us that national interest should override personal interest. Therefore it is better to take a wrong decision than taking non in a matter of urgent importance

“Outside Nigeria you will find out that mother ports are basically a transit area feeding outer inland container deports as ports of origin and destination.

“Specifically in Nigeria the northern zones are land locked and therefore it stands to reason that inland container deports must be designated as ports of origin and destination. We should not waste time further on this because of its inherent benefits

“The inherent benefits shall include but not limited to seamless operations, stemming of smuggling activities, safety of cargo, reduced cost of doing business, employment and stemming of urban migration, increased productivity in the area of revenue collection and facilitation of trade etc

“If really we want to be honest to our selves in Nigeria greatness the essence of equity and fairness must be a consideration in our policy direction and implementation

“It is our opinion and observation that the northern part of Nigeria have suffered so much in the area of cargo logistics and transportation

“This is because the cost of doing business in the north is not competitive with the southern part of Nigeria due to difficulties inherent to access the seaports

“Therefore access to the seaports shall be an urgent decision of the federal government under the circumstances to key inn the north into the mantra of renewed hope for Nigeria greatness

“Regret to note that all over Lagos and Rivers state due to the existence of seaports, you will find out that streets and city roads are littered with containers and tankers and constituting obstruction to road users

“Most of these tankers are cargo containers heading to the northern part of the country and sometimes to the East

“These are containers that should have been taken directly from the mother ports through rail transportation mode to the destination.

“Even at that the roads and hanging bridges have turned to parking lots thus causing avoidable damages. The menace of area boys and collection of unapproved taxes are continuum as if Nigeria is a banana republic

“The federal high ways are terribly bad and cargo hijackers are unchecked with multiple checks points extorting road users. All these can be eliminated if only we can designate inland container depots as ports of origin and destination and link it with rail transportation system

“The technical team of Nagaff took out time to visit kano state the economic hub of the northern part of Nigeria. Regret to note that private investors in the area of cargo logistics are not being encouraged by the Federal Government of Nigeria

“Take a trip to DALA INLAND CONTAINER DEPOT and see by your self what a private investor created and established in kano State. Dala inland container depot is twice the size of Apapa port with every infrastructure and facilities to enhance multi modalism and yet the federal government finds it difficult to designate it a port of origin and destination

“Nagaff is therefore asking the leadership of Nigeria WHAT DO WE WANT REALLY? the Dala inland container deport can take all cargos from the northwest to the mother ports of lagos, Rivers and Delta seamlessly by rail for export etc

“Therefore what we need to do urgently is to encourage private investors in the northeast, north central and southeast to build up inland container depots and government should designate them as port of origin and destination

“This development will create not less than five million jobs for the young freight forwarders of Nigeria. Instead of this avoidable urban migration most of them who can not pay the high cost of rent can operate from their villages

“We therefore encourage Mr President, the Hon Minister of Blue Economy, Minister of Finance, Labour and Productivity, Minister of Trade and Commerce and indeed the Comptroller General of customs to visit DALA DRY PORT INLAND CONTAINER DEPOT to see things by themselves and make an informed eye witness account decision

“The mantra of renewed hope for Nigeria is possible if we live an open mind and implement constitutional democracy

“This letter is being forwarded to Mr President as a working document being our own little contribution to Nigeria greatness

“And for the Comptroller General of customs who has the inherent powers and in consultation with mr president to designate ports of origin and destination, it is our hope and advise that a technical team be established to advance this course for the good of our country and the north in particular

“The north have suffered so much in this regard and we are witnesses to the anger of poverty most recently from the youths of the northern part of Nigeria”

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