Absence of National Single Window and Implication on Trade Facilitation

Nigeria has always wanted to be a hub for maritime trade in West and Central Africa sub-region but tools for facilitating trade has been absent such as National Single Window at the seaports. Nigeriamaritime360.com ABIOLA Seun writes.

Out of the all the countries in West Africa, Nigeria is the only country that lacks necessary trade facilitation tools for ease of clearance of goods at the seaports.

While Ghana, Togo, Benin Republic all have a functional National Trade Platforms for Trade facilitation, Nigeria, a supposed hub for Maritime activities is yet to have a functional Trade platform.

The NTP also known as the National Single Window system is a trade facilitation idea which enables international (cross-border) traders to submit regulatory documents at a single location and/or single entity.

A seaport with single window has a reduced dwell time for cargoes, vessel waiting time, easy clearance of cargoes and less corrupt tendencies because human interface would be cut off.

The non-availability of a single window at the Nigerian seaports has affected efficiency of Nigerian seaports and trade facilitation emerging as an important subject in the world trading system.

It is in keeping with the demands of the World Trade Organisation, WTO, World Customs Organisation (WCO), among others in the efforts to make trade easier for nations. Under the single window, there will be a single portal for all to access, which makes cargo clearance simple.

Though in Nigeria there is an inter-ministerial coordination on national single window which includes the Ministry of Transport and Finance Ministry, the Ministry of Transportation was given the approval to initiate and drive the project.

NSW is a project of the United Nations Economic Commission for Europe (UNECE). It was developed in 2005 as part of the moves to “simplify, harmonise and standardise international trade procedures”, as well as associated information on trade.

So far, over 70 countries have implemented the project because of its capacity to improve trade efficiency and competitiveness among trading nations.

The world is advancing towards a paperless society that even clearance of goods is moving towards a simple touch of the button instead of the hassles that Nigerians go through in the ports before their goods are released.

A visit to advanced countries has always shown how backward Nigeria has remained.

In these countries, everything is automated in such a way that personnel you find at the ports are simply security staff.

Everything is done online but here in Nigeria, it is a different ball game as even officials of government agencies, such as the Customs may not be able to do without the presence of clearing agents who would monitor their entries from table to table and also settle appropriately before their goods are released.

The truth is also that there is hardly any importer in Nigeria that would not like to cheat on government, one of the reasons why the personnel of the Customs would extort them.

But, automation through the NSW would check this trend, a development that would be a big task for such innovation to work.

Bemoaning the lack of a functional NSW, the Minister of Transportation Rotimi Amaechi at the Sub Regional Workshop and Joint Standing Committee Meeting of the Union of African Shippers’ Council (UASC) hosted by the Nigerian Shippers’ Council in Abuja recently, said Nigeria is the only country in West Africa without a National Trade Platform.

He said, “Nigeria has not been able to create a National Trade Platform which allows you to clear cargoes in 24hours. It is rather unfortunate that Nigeria is the only country in West Africa that is yet to get the platform.”

“The sub-regional workshop will assess the implementation of WTO, Trade Facilitation Agreement (TFA) and issues relating to Port operations, the sea-link project which are key to the effective realization of the sub-region’s maritime goals.

The Chairman Governing Board of Shippers Council, Alhaji Mai Mala Buni also bemoaned Nigeria’s lack of a functional Single window saying Nigerian may lose out from benefiting from the $1trillion annual gain on implementation of the Trade Facilitation Agreement (TFA) due to a non-functional National Trade Platform (NTP).

According to him, the non-availability of the NTP has affected efficiency of Nigerian seaports and trade facilitation emerging as an important subject in the world trading system.

Buni who was represented by Alhaji Lawal Samaila said, “With trade facilitation emerging as an important subject in the world trading system and WTO Trade Facilitation Agreements (TFA) coming into force on 22nd February 2017. It is heart-warming that many countries in the West and Central Africa sub-region have ratified the TFA.

“It is expected that full implementation of TFA would reduce the cost by as much as 14.3 percent and boost go ballistic trade by up to $1trillion annually with the biggest gains accruing to the poorest countries.”

“It is imperative that all necessary facilities and processes by systematically provided to enhance the supply chain and seamless operation to improve the efficiency and competitiveness ease within the global trading system.”

On his own part, the Executive Secretary of the Nigeria Shippers’ Council, Barr. Hassan Bello said lack of single window already affects efficiency of the seaports.

Bello said single window will eliminate inefficiencies and lead to simplification of documents and short dwell time of cargoes at the seaports.

He said, “It has affected the efficiency of our port because the national single window is a trade facilitation platform preferably electronic that will bring all users and providers of shipping services together. Single window will eliminate inefficiencies and lead to simplification of documentation.

“It will lead to transparency and short dwell time of cargo. national single window and the Cargo Tracking Note are all trade facilitation platforms.”

Bello further stated that the implementation of Cargo Tracking Note and National Single Window would increase trade facilitation and drive down the cost of shipping and clearance.

He stated further, “The federal ministry of transportation is overseeing the Single window and already there is a committee set up by the vice president, Prof. Yemi Osinbajo to look at this national single window which is being chaired by the NPA and the Nigerian Customs Service and the Nigerian Shippers Council is also a member.”

“So we are going through the procurement processes and it is hopeful that this single window will come on stream very soon. The same thing with Cargo Tracking Note which is a very Important platforms for trade facilitation so all these things when they come together we hope, will have a very meaningful efficient transportation agency In the country.”

Bello said the idea of the national single window was to make sure that the nation’s ports were more efficient and achieve clearance of cargo within 48 hours and for the nation’s ports to operate just like airport, 24/7.

Besides, he said the nation needs the national single window to block revenue leakages. He said with integration of systems, the agencies of government would provide the national single window.

“I am sure NPA will provide substantial input to Nigerian national single window, As a matter of fact, NPA has port community system which contains a lot of platforms. Shippers Council will contribute same thing, NIMASA will also contribute same thing”, Bello said.

Also expressing regret over lack of single window at the Nation’s seaports, a shipping expert, Dabney Shall-Homa said the country is losing both revenue and cargo clearance.

Shall-Homa, a former Director at the Nigerian Shippers Council said, “We are losing everything because lack of single window. A single window has three disparities, ship, documentation and tracking, documentation itself with transaction, so we are losing in terms of transactions, we are losing in even understanding the way things are.