‘We have a duty to support Customs N5tillion revenue target’ – Oduntan

BY EGUONO ODJEGBA

The Association of Nigerian Licensed Customs Agents (ANLCA) has said the freight industry which consists of the clearing and forwarding sub sectors has an obligation to partner with the Nigeria Customs Service (NCS) in the realization of its ambitious N5 trillion revenue target for the current fiscal year, 2024.

Vice President of ANLCA, Prince Segun Oduntan who gave the charge when he played host to some maritime journalists who were in his office to wish the leadership of the association a happy new year, noted that the projected target is a culture that is in keeping with revenue administration corporate governance system.

This is even as the brutally frank ANLCA leader responding to questions on the protracted ports traffic snarl that has imposed huge impact costs on cargo movements in and outside the ports, described the Nigerian ports authority operated Trucks Call-up System an open scam with unremitting official collusion by the three tiers of government; federal, state and local government.

Oduntan argues that supporting the Nigeria Customs Service quest for 24hours ports operation will raise the overall performance and help to stabilize rising port trade costs if genuinely and purposefully pursued.

Speaking on the 2024 N5trillion revenue target, Oduntan said it is a normal routine for government revenue generating departments to make projections based on fiscal policies, and hence the NCS is entitled to its forecasts.

“Customs will continue to generate revenue within the scope of its statute because you are not paying anything if you don’t import anything. They have their calculation, it’s a projection by them that if by so and so period, we were able to generate so, so amount, then we should be able to generate this and that amount for the year. They are being proactive that they should be able to generate certain amount at a certain period based on past record.

“Possibility of generating their target shouldn’t raise fear for anyone, you just have to be optimistic about it. As a business man or head of an agency, when doing your projection for the year, you don’t have to stand and say I don’t think I will be able to make so, so amount even when you know that you can only make little. Tell your staff the projection for the year is high so as to make everybody sit tight and aim high.

“Meanwhile if the cargo is not there what can he do? The CGC is on appointment, he is on a seat and he has to drive the economy with all that is expected from him. He can tell you the amount they intend to generate and that should not drive anybody anywhere. He has been talking to his officers, we can see a renew Customs now, people are happy doing the work and we agents have been talking to our people that it is better to be compliant than paying one levy or fine… because you find out that there is no point if I have to pay a duty of #3 million for instance, and I went and pay #1.6million and is given a DN (debit note), the penalty of 25% of that amount , it doesn’t make any sense.

“It’s better to be compliant from the onset, that will give you peace of mind of a fruitful day at work.”

Talking to the authorities on its failure to organize a seamless truck traffic flow in and out of the port and clean the Augean stable that is currently the port access roads, he recommended urgent moral and cultural reorientation on the part government and the trucking operators.

“We can all agreed as of today in the whole world, that every economy, every system is been driven by improved technology…automation and e-system control. So those private terminals are supposed to have a central gate where we have our cargoes, and after the release of our cargoes, we are suppose to be the one to give the code to the driver after collecting our TDO to go and load.”

He accused NPA of incompetence and corruption  in the management of the Call-up System, lamenting that those with no business at the port terminals and along the ports access roads are issued entry pass and constitute all kinds of blockades, leading to traffic congestion and avoidable snarls. Oduntan proposed a radical change in the call-up system which should include cargo owners as critical appendage in the issuance of trucking access code.

“Every driver would have done their biometric and when you have a cargo to take, it’s either you present the code or the biometric to be able to access the terminal, with that you don’t have anything to do littering the road. The major thing there is that we that process the cargo are supposed to be the one to give access to trucks and not NPA. What are they all rushing to do at the terminals when they don’t have any cargoes to pick? They (ETO) have outlived their usefulness and abused the process…”

The ANLCA Vice President also argued that part of what is adversely impacting the nation’s export capacity is the lack of incompetence in the administration and mismanagement of the ports access roads traffic; noting that prevailing export trade economic incentives cannot be better.

“One of the incentives government has provided is export grants and others that can be given to people doing exports, and they are enough. The real issue is the port environment system, cargoes that are loaded with export goods find it difficult to enter our ports for weeks which is not supposed to be.

“In the process some of the goods will get spoilt due to the delays, which is very bad. That’s the issue of port access system, the ETO call-up system as far as am concern is a scam, it has to go. In Ghana, the access road to Tema port is not as big as ours here and you can never see any container littering the road, once it’s time for export goods to move in, they do it and if it’s time for import goods to come out, it follows suit. If you do not have anything to do in the port you will not access it.”

Speaking on the increased challenges in the import sector especially on policy high handedness and somersaults in terms of anti-forex policies and import bans of essentials, he urged clearing agents and freight forwarders to think outside the box by trying their hands in export trade and other trading possibilities.

Going forward, Oduntan called on the Federal Government through the Minister of Marine and Blue Economy and his Works counterpart to come up with quick fix measures to correct the faulty truck call-up system and free the ports access roads of all encumbrances’, both environmental, design and human.

“A lot of things have to change in terms of orientation on our part as clearing agents. Apart from the government, most times what we see on ground that makes export cargoes not to access the ports are human factors. People are fast improving on exportation now, but the problem we still have is how does the export goods get to its final destination thereby making the economy to lose a lot in foreign exchange.

“Look at the port corridor system, the rail is supposed to work like 24/7, it should not be the road alone. It’s not every terminal that barge can access, some are doing double handling, while some are triple which you have to cost and the risk involved. There are lots of things to propose to the minister, if he wants things to work out.

“We have made it known that we don’t intend to criticize anyone in government but we have to tell them the things that needs to be done for our survival and for the economy to move on.”

On the lingering and erratic forex market administration, Oduntan also spoke on ANLCA’s expectations for 2024.

“What ANLCA have said, especially this our regime…knowing full well that we are coming out from a crisis that we have all waved behind for peace to reign so that business can strive is to be carried along.

“What we have in mind is to inform the government what is right in the port industry and the port environment. Our expectation is for the Naira to compete well and for the value to come down.  We are encouraging our people to embrace export trade and we want improved forex administration and the dollar exchange rate. Some of our people are even going into agriculture so they can be exporting the proceeds. This will enable us to back up government moves to reduce our import dependence.”

While noting that the clearing agents are the real revenue and economic driver of the port economy, Oduntan lamented that they are the least respected and appealed for improved professional conduct.

“I want to also urge our members to be compliant with government regulations. With our compliance we will be able to dialogue with the government agencies and they will in turn listen to us. Clearing Agents are the one’s driving the port, but we are the least respected.

“The cargoes at the ports technically belong to us, people are collecting things left and right from the port, we that are fronting and pushing the preparation of the documentations, paying the duties, both terminal, shipping, transporters and what have you, are the least respected.”

He said ANLCA under the present leadership headed by Mr. Emenike Owokeoji is poised to achieve a reversal and taking the industry back to the glorious era left behind by Prince Olayiwola Shittu before the fall.

“Ours is to take the leadership position back so that all of us and our people coming behind can benefit from what ANLCA use to be in the past; with total readiness to lead by example. Integrity is of upper most importance now. We are also trying to collaborate with leadership of other clearing and freight associations to see how we can move this industry forward.

“Our members should be compliant this year while going about our businesses, and be hopeful and believe that Nigeria will be better for all of us in this new year.”