Absence of Single Window at Seaports May Deny Nigeria $1trillion Trade Facilitation Benefit

ABIOLA Seun |

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) at the nation’s seaports.

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.

However, 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.

But, speaking at the Sub Regional Workshop and Joint Standing Committee meeting of the Union of African Shippers’ Council (UASC) hosted by the Nigerian Shippers’ Council yesterday in Abuja, the Minister of Transportation, Rotimi Amaechi bemoaned Nigeria’s lack of National Trade platform.

According to him, 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. I therefore call on the participants to thoroughly and expeditiously look into these matters with a view to advising governments of the member states on appropriate regulations and policy measures to realise these goals.”

The minister also stated that the current administration has made remarkable progress in the development of trade support infrastructure in the country.

“Permit me to mention that on our part, the federal government of Nigeria has made remarkable progress in the development of trade support infrastructure such as Railways, Roads and other facilities.

“We are establishing Inland Dry ports and Truck Transit Parks in several locations across the country to bring shipping closer to service users in the hinterlands.”

Also speaking, the Chairman Governing Board of Shippers Council, Alhaji Mai Mala Buni said efficiency, competitiveness, cost reduction and fair trade practices between providers and users of port services are germane to the holistic implementation of Port reform and ports concession in the sub-region.

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 the full implementation of TFA could 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.

“The development of Port and hinterland connectivity infrastructure are critical to the economic development of any country, be it coastal or landlocked. In as much as the sub-region engages in global trade. It is imperative that all necessary facilities and processes be systematically provided to enhance the supply chain and seamless operation to improve the efficiency and competitiveness within the global trading system.”

Speaking on the sideline of the event, the Executive Secretary of the Nigeria Shippers’ Council, Barr. Hassan Bello said lack of single window affects the efficiency of the seaports.

Bello said the 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 platforms 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 said, “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.”

“Sometimes, cost is result of inefficiencies and also chaos or lack of processes or procedures once we have the single window and the Cargo Tracking Note, these issues will be eliminated and by nature of that we see cost of doing shipping in Nigeria coming down drastically.”

“Already, NSC is about signing a very important MoU with the shipping companies and this will receive such drastically about 35 percent the cost of doing business in Nigeria. if we perfect our system, we will find efficiency and competition because competition drives down the cost. We want the cost of transportation to be minimal part of cost of production.”

Delegates from 19 countries across Africa participated in the conference.