The Manufacturers Association of Nigeria (MAN) says members are facing a lot of hassles while trying to get their consignments in and out of Lagos ports.
At the association’s CEO’s Business Luncheon entitled ‘Lagos Ports Congestion: An End in Sight? Analysing the Economic Cost to Industries in Ogun State and Exploring Viable Options’, held in Sango-Otta, Ogun State, manufacturers called for rehabilitation of broken infrastructure across the country to steer industrial growth.
Speaking on behalf of the association, Seleem Adegunwa, chairman, MAN, Ogun State chapter, said manufacturers in Nigeria face various challenges which make doing business difficult.
“The success of any manufacturing outfit is contingent upon various factors,” Adegunwa said.
According to him, some of such factors include good infrastructure that will ease the movement of raw materials and finished products; readily available and affordable power supply, and an enabling regulatory environment.
Adegunwa also pointed out that one of the greatest challenges facing manufacturers is the multiplicity of taxes paid and unnecessary demurrage incurred as a result of delays at ports, due to congestions in accessing Apapa.
He said these delays and demurrages are caused by the time wasted in accessing Lagos ports.
Apart from traffic gridlocks, another factor is the actual time taken to clear raw materials and machineries. Manufacturers say this has deliberately been tripled, thereby revving up production costs.
There is also the needless bureaucratic processes that cause bottleneck for industrialists in getting their goods in or out of Apapa.
“Of particular concern and importance to us (MAN) are the challenges we face in moving our raw materials and goods to and from the ports,” Adegunwa said.
“The effect is that the production cost of members has increased tremendously,” he said.
Adegunwa pointed out that if the trend is not checked by relevant government agencies, it could result in collapse of more factories and businesses, noting that some firms have already shutdown their operations and relocated to neighbouring countries.
Responding, the Nigerian Customs Service (NCS) said the service is not part of the congestion at the Apapa and Tin Can ports.
Olutade Francis Adetoye, Custom Zone ‘A’ Controller, said what is apparently being experienced in Apapa and other parts of Lagos is “road congestion and not port congestion.”
He said it is not within the purview of the service to control road traffic as such responsibility is meant for other government agencies, both at the state and federal levels.
He said the service only works inside the Wharf and always ensures it is not congested.
Speaking with BusinessDay exclusively, Adetoye denied the involvement of Customs in setting up road block along Apapa axis in order to extort money from truck drivers.
Adetoye explained that what “we probably see on the roads are special task forces who can go anywhere and who act upon receiving intelligence reports concerning any container,” adding that, “even among the taskforces there are groups who monitor the activities of the taskforces.”
It is a long chain of checks and balances, he said.
Explaining further, Adetoye admitted that it is possible for a Customs officer to connive with a clearing agent to compromise the content of a container. In such a case, if the service receives a tip-off, it may stop such container on the road to crosscheck the content. He added that such operation should not be tagged as setting up of road blocks and extorting money from truck drivers.
JOSEPH MAURICE OGU
