INDIGENOUS licenced Customs agents are now fighting the battle of their lives to control a larger market share of the juicy import and export clearing business. They believed government policy is not protecting local players as it is the case elsewhere.
The agents argued that their foreign counterparts operating in the country have capitalised on the existing legal lapses to dominate the market, thus worsening Nigeria’s capital flight and unemployment.
Maritime experts say the development had been like that for years, but has now reached an alarming stage with many companies closing shop, throwing thousands of Nigerians out of jobs.
Investigations revealed that for instance in Benin Republic, Togo and other African nations, import clearance is exclusively reserved for the locals to shield them from the predatory tendencies of foreigners, but that is not the case in Nigeria.
Commenting on the development, a member of the Presidential Committee on Port Reforms, Lucky Amiwero, said foreigners are not to blame for taking businesses from Nigerians.
“In Nigeria, the trade terms are poor. The laws are weak. The system is so porous. They don’t really protect or give exclusive operational rights to Nigerians. We operate Cost Insurance and Freight (CIF) for imports. It gives the powers to the shippers to negotiate for freight and determine who clears the goods on arrival. But I think the Freight On Board (FOB) arrangement is better for imports. So, what happens now is that since most of our cargoes come from Asia, you see Lebanese, Indians, and Chinese doing the clearing of these consignments. It’s called door to door model. You can’t blame them. They are exploring the gaps in your environment”, Amiwero said.
Another advantage experts say foreign clearing firms have over Nigerians is their financial strength as they access funds locally and overseas to enable them corner multi-million jobs for multi-national corporations with the option of allowing them to pay later and not on a cash and carry basis.
“They can clear 500 containers worth millions of naira at once for a blue chip company or multinational and ask them pay later. How many Nigerian licensed Customs agents can afford that? Banks are not easily disposed to supporting us. These blue chip companies prefer that model of clear now and pay later, but most of Nigerian agents cannot afford that. So, why would the multinationals prefer Nigerians?
“The laws are not strict, no easy access to money to carry out multiple heavy clearing. These are some of the challenges. Another issue that makes foreigners the preferred choice is that some local licensed agents are not well-trained. We don’t understand the intricacies of our operations. We sort, classify, interpret and apply the law. We’re captured under Section 156 of the CEMA. Section 153 gives us the authority to practise and we’re regulated by the Finance Minister. Our job is highly technical because we are involved in interpretation of rules, HS Codes, transshipment and many others. That calls for professionalism which some of us are yet to attain”, Amiwero explained.
According to the President of Shippers Association of Lagos State (SALS), Jonathan Nicol, about 10,000 Nigerians will lose their jobs as foreigners are set to take over import clearance operation at the seaports.
Nicol, who raised the alarm at the weekend, said the development spells doom for both the freight forwarding sub-sector and the nation’s economy as a whole.
According to Nicol, the Federal Government should, urgently, begin investigations to impose necessary sanctions against foreigners taking import clearing jobs from Nigerians.
He noted that most local freight forwarders now lay idle at the ports as foreigners who have taken over virtually all the processes of cargo clearance now smile to the banks.
“Freight forwarders are losing their jobs to foreigners. Reports reaching the Shippers’ Association Lagos State indicate that some private foreign companies are bent on taking over all the blue chip companies and manufacturing industries in Nigeria through out-sourcing,” he said.
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