GOVERNMENT  last week reiterated its commitment to reducing the cost of doing businesses in the nation’s seaport and affirmed that it had commenced the process of articulation of policy frameworks that will enable the nation meet its logistics challenges.

Transport Minister, Alhaji Yusuf Suleiman made this declaration in Abuja at the second National Shipping Conference, organised by the Nigerian Shippers’ Council, NSC.

According to him, Government will build on the dream of ensuring an effective trade facilitation through simplification and harmonisation of internal trade procedures, and to this end it, will ensure that trade facilitation focuses on simplification and rationalisa-tion of Customs and other administrative procedures, particularly the one that gets in the way of trading across borders.

Affirming that government is aware of the non-competitive cost of goods’ clearance in Nigerian ports and border posts which is characterised by multiple agencies, high costs, congestion and preponderance of corrupt practices across all spectre of service providers, resulting in poor revenues for the government, he stressed that efforts are being geared towards solving the problems.

He said: “All the above, coupled with ineffective service delivery have rendered our ports unattractive to ship owners and shippers who prefer to divert Nigeria-bound cargo to neighbouring ports to the detriment of our national economy.”

He, however, expressed optimism that when measures, which included the single window regime, were implemented at seaports, airports and land borders, there would be an enhanced enthronement of a user-friendly ports which would boost competition, cut costs and reduce delays, encourage foreign investment and consequentially improve revenue.

The Minister explained that government was, however, not unaware of prevailing challenges which have also made global trading become a daunting venture

Some of these challenges, he noted, are trade liberalisation, financial meltdown and the ascendance of the electronic information all of which he noted had made market competition more intense. He assured of continuous government support.

Suleiman said: “The ever tightening market share and growing sophistication of trade as a result of globalisation have equally resulted in new challenges. Higher inventory costs have necessitated just-in-time, seamless door to door cargo delivery. Competitive advantage leverage now calls for physical delivery to expand further into wider supply chains that talk about efficient and effective multi-modal transportation.

“The recent increase in incidents of small arms importation, piracy and acts of terrorism have forced maritime administrations to add International Ship and Port facility Security, ISPS, Code to the Safety of Lives at Sea, SOLAS, conventions.”

He stressed that these developments actually paint a gloomy picture of cargo logistics and the attendant negative implications for shippers.