‘High Cost Of Operation, Naira Devaluation Responsible For Operators’ Tariff Hike’

Clearing agents operating at the nation’s seaports have justified the increment in terminal and storage charges by terminal operators across the country.

It could be recalled that terminal operators have increased storage and terminal handling charges after the Nigerian Shippers’ Council (NSC), approved the increment due to current economic woes.

Speaking to LEADERSHIP, the former acting president Association of Nigerian Licenced Customs Agents (ANLCA), Dr Kayode Farinto and the former president, National Association of Government Approved Freight Forwarders (NAGAFF), Dr Increase Uche, said the increment is necessary due to the cost of operation occasioned by increase in foreign exchange, diesel and high cost of production, among others.

According to Farinto, the rising cost of diesel, declining value of the naira and high rate of inflation, among other factors, justify the need for upward review of terminal operators’ charges.

He said for the operators to remain in business and not to shut down their operations, increment is needed and necessary.

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“We all know that the indices of working in the port now are not as it used to be and things have changed. The terminal operators too are Nigerians and if we juxtapose what is happening vis-a-vis the fact that there has been an increment in prices of fuel and the dollar has risen, so there has to be a rise in their charges too.

We are in an era where you cannot predict the dollar and these people are rendering services so it becomes inevitable for them to increase. Nobody should be criticised for that.”

“But, I want to commend them because they are coming late in increasing their charges because I know that if it were to be the old operators, they would have increased the charges but they took their time before they did this. There is nothing anyone can do about it,” he said.

Farinto also charged the federal government to repair the dilapidated port access roads to reduce the hardship faced by importers and their agents.

“Government has failed in their responsibility ab initio to even provide the services they need to provide. What are these services? It was in the concession agreement that the government will provide electricity 24/7 but this has not been made available. It is still the same terminal operators that are providing electricity so the government must go back and do that. Secondly, the government must put in place all the roads that are dilapidated, particularly the access road to the seaports and I have also said that it is high time we delineated the port area. As we speak, we do not know which area is the port area and that is why we have miscreants encroaching on the port area.”

Also speaking, Uche, who is a member of the Council for Regulation of Freight Forwarders in Nigeria (CRFFN), said no reasonable practitioners will be against the increment

He stated that practitioners are aware of naira devaluation, crisis in the economy as well as inflation, thereby, making the increment inevitable.

“No reasonable practitioner or port users will go completely against the increase in charges at the port because of the current state of the economy. We are aware of naira devaluation, crisis in the economy, inflation and Naira Floatation.

“Tariff increment is necessary looking at the economy but, what we are saying is that there should be moderation and should be increased reasonably. No reasonable human being and business man that is aware of what is happening in the nation’s economy will go against the increase in service charges,” he said.

He, however, commended the Nigeria Shippers’ Council (NSC), for performing it’s statutory function of regulating and approving the increment.

“Shippers council should be commended for playing their statutory role because there is decorum in the sector to some extent.”