Port Activities Drop As Banks Deny Importers Loan

Contrary to the high level of importation and increase in port activities that usually characterize the end of every year, maritime stakeholders have complained that there is a different story this year as cargo traffic at the ports in Lagos is reducing by the day.
The stakeholders who spoke with Shipping Position Daily correspondent in Lagos on Monday hinged the drop in port activities to the refusal of the banks to grant loan facilities to importers.
Also, freight forwarders who spoke to our correspondent also cried out that the situation has led to them losing some of their importers who are now finding a new haven at the Port Harcourt port, as well as diverting their activities to land borders.
A licensed customs agent and chieftain of the Association of Nigerian Licensed Customs Agents (ANLCA); Chief Achike Molokwu blamed the situation on the unfriendly policies being rolled out by the Federal Government on cargo clearance through the seaports.
Molokwu explained that: "When we asked some of these importers, they said that to get loan from the bank is difficult, and more so, that the policy guarding clearing at seaports is cumbersome and that they usually loose out when they get to the warehouse"
"Cargo traffic has dropped, we are not happy at all, if you look at the statistics, it’s like it is dropping every day. This is because of the policy being rolled out by the federal government on importation is so tight that importers are not finding it funny again to come in, most of them are now patronizing land borders. Personally, I have lost two importers because the problem of the seaport is too much" he lamented.
He maintained that there are lots of bottlenecks at the port, but that when importers use the land borders, the process is less cumbersome because they get cargoes straight to their various warehouses.
He recounted that one of his importers had to shift base from Lagos to Port Harcourt because of the growing unfriendly nature of the Lagos ports.
"They are all moving to Port Harcourt now because they claim the clearance process is better streamlined there, they pay duties, but there is no bottlenecks" he said.
Also confirming the lull in port activities to Shipping Position Daily, image maker of the Tin Can Island Port Command of the Nigeria Custom Service, Mr. Chris Osunkwo confirmed that there are cargoes at the ports but there is no money to clear them.
Osunkwo told our correspondent that the customs is worried that the drop in activities may take a toll on its revenue figures for the rest of the year.
He said, "we have the cargoes there, but they are not being taken out because the importers and agents are complaining of cash crunch, that there is no money to facilitate the clearance of these cargoes." "As a result of this, we are praying and working harder to ensure that it does not impact negatively on our revenue profile"
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As you can see for yourself there is a lull in activities all over the ports compared to a period of last year, usually by this time of the year there is increased activities"
"We do not know the cause of the cash crunch, maybe it’s the central bank, the ministry of finance or just the banks, we don't know what is keeping the money there, its not circulating" he said.
He however faulted claims of importers diversion to border post on account of cumbersome custom process. According to him, custom procedures are statutory and universal.
"It is the same custom procedure they will be subjected to at the borders, except you are suggesting smuggling, the procedure is universal, the people at the border are not ghosts" he said.
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