Business

October 14, 2010

FG urged to restrict foreign participation in freight forwarding

By Godfrey Bivbere & Stella Christian
Indigenous freight forwarders in Nigeria have called on the federal government to restrict the practice of the profession to Nigerians alone, as is obtainable in other parts of the world, alleging that government loses more than N100 billion annually to foreign operators.

The local freight forwarders noted that while foreigners are smiling to the bank at the expense of local operators in Nigeria, other countries have continued to protect their nationals and prevent capital flight.

National President of the Association of Nigeria Licensed Customs Agents (ANLCA), Prince Olawiwola Shittu, told Vanguard that government’s seeming lack of interest in the profession has resulted in its domination by foreigners.

Similarly, Chairman of the Council for the Regulation of Freight Forwarding in Nigeria (CRFFN), Tony Iju Nwabudike, told Vanguard that most of the top jobs in the country are handled by foreigners, which the Council hopes to correct over time.

Shittu pointed out that the federal government losses over N100 billion annually from the activities of foreign freight forwarding groups in the country. He said this is so because these foreign operators also have their bonded terminals and move any consignment from the port unchecked.

Shittu pointed out that government gives target of about N650 billion to the management of the Nigeria Customs Service (NCS), although there are leakages, the Customs themselves have been able to block some of the loop-hole from which there have been revenue leakages in the past.

“Even abroad leakages are always there but the cleanest operators are the foreigners, they have money to invest, they will have their own bonded terminal. They will carry cargo from anywhere and apply for their bonded terminal to receive it, on receiving that cargo; I know that it is (Customs) officers are the ones to do inspection but because they are in charge of declaration and everyone has a price.”

“So a hungry Customs will collude now, I am telling you government will loss not less than a N100 billion (one hundred billion) annually with the involvement of foreigners in freight forwarding. With a projection that it will continue to increase,” Shittu said.

He further stated that the average security personnel at the port gives more respect to a foreigner than a Nigerian should both be looking for the same thing from the officers.

He explained that solution to indigenous handling of freight forwarding in the country is a new orientation on the part of all those concern, both government, security agents and the practitioners themselves. “Government must make it a deliberate effort to make freight forwarders a part of the security network. Until then, there is nothing we can do,” he added.

According to Shittu, “If we want to copy what is good, you must be a Nigerian before you can go into freight forwarding, whereas as I told you, our lives have been deregulated by the government. I have come to a stage in my life where I don’t need to crack my brain for the problem of Nigeria,” he concluded.

Speaking in the same vein, Alhaji Hakeem Olanrewaju, said there is need for government to control the involvement of foreigners in the freight forwarding practice in line with its local content policy. Olanrewaju who is the Deputy Chairman of CRFFN and Managing Director of Talod Oceanair Freight Ltd noted most ensure restriction of the freight forwarding business to Nigerians to protect the nation’s economy and security.