Getting imports out of the nation’s seaports is becoming a hard nut to crack due to the persistent breakdown of the Customs server, which has created a long list of uncleared cargo at the ports.
The development is also creating delays in cargo clearance at the ports, which in turn piles up costs for businesses as there are thousands of examined and released containers at the ports, which cannot be taken out by their owners owing to the server failure.
According to port users, the bottlenecks created by the server breakdown have worsened the business environment at the port, resulting in delays in clearing cargo.
Tony Anakebe, a Lagos-based licensed Customs agent, said there has been a complete breakdown of the Customs server at the ports and this has lasted for over a week.
According to him, the breakdown of the server has created delays in cargo clearance and a backlog of uncleared goods at the ports.
“Today, importers and their agents are finding it difficult to get their goods out of the port because of the breakdown of the Customs server. There are thousands of examined containers at the ports that are yet to be released by Customs. This is because Customs officers cannot release goods for agents without carrying out proper assessment reports from the units that have worked on the cargo, and this can only be done online,” Anakebe said on the phone.
Citing an example, he said his company is clearing a container at the Tin-Can Island Port but the officer in charge was battling with his system all through December 12 without success, and the officer was forced to shut down his computer around 4 pm without being able to release one container.
On the implication, Anakebe said importers are being forced to pay demurrage on their imported containers to shipping companies and storage rent to terminal operators.
According to him, paying such additional costs on imports also has economic implications on the market prices of goods, especially now that Nigeria is battling with high inflation.
“The importer will pass the cost to the final consumers by inflating the prices of goods in order to recover the capital invested in the business,” he said.
While pointing out that the delay in cargo clearing at ports also add to the longer dwell time of cargoes at the port, Anakebe said it usually takes about two weeks to process import document, but the days have doubled as it now takes over three weeks for importers and their agents to clear goods from the ports due to breakdown of Customs server.
Confirming this, Frank Ogunojemite, president of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria, said the protracted server failure, which has lingered for a couple of weeks, has added to the hardship freight forwarders and their importers are going through while clearing goods at the ports.
“With the constant breakdown of the Customs server for over a week now, clearing agents and their importers have been trying to stay in business. This is coupled with the 90 percent increase in Customs duty, which has brought the industry and the economy to its knees,” he said.
Ogunojemite, however, said that despite the server breakdown, shipping companies and terminal operators still collect their charges, which was why he appealed to shipping companies and terminal operators for a waiver on demurrage and storage charges to reduce the burden on importers.
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He called on the Federal Government to review or consider terminating the contract with Customs’ internet service provider, Webb Fontaine, for “gross incompetence and jeopardising ease of doing business” at the ports.
Remilekun Sikiru, a licensed Customs agent at the Tin-Can Port, said there has been a constant breakdown of Customs’ server, which he blamed on the service provider.
According to him, millions of naira worth of demurrage and storage charges are mounting on cargoes that are trapped at the port for days due to the inability of the owners to get them out.
Timothy Adebowale, a Customs-licensed agent, said Customs has not been able to release cargo since last week.
“There are cargoes that have been released but cannot be exited for delivery. The cargoes are tied down due to the breakdown of the Customs server. I have two cargoes at PTML Terminal that are yet to be exited but due to the persistent breakdown problem, I have not been able to take my goods out of the port,” he added.
Reacting to the complaint, Timi Bomodi, national public relations officer of the Nigeria Customs Service, told BusinessDay that the problem with the server is a network issue.
“It is a network issue and it’s not unique to us. Other institutions experience the same thing. However we are working to improve on our connectivity,” Bomodi said on the phone.
