Mr. Kunle Adenipekun is  the  Managing Director/CEO, Kungo Rock Investments. It’s a freight forwarding company that handles logistics, chain distribution, documentation & consolidation services.

Adenipekun: If one follows rules in freight forwarding, there is no much challenges

In this interview with Nosike Moses  of  Vanguard Business, he speaks on factors that are militating  against the growth of the economy and urged government to take the necessary steps to remedy the situation.

Excerpts:

What does Kungo Rock Investments specialise in?

It is a freight forwarding company. We’re into import and export. We are agents to some Airlines both within and outside Nigeria.

How do you see the operation of the industry?

Like any other industry has its own challenges,  freight forwarding has its own challenges  but if you follow the rules laid down by government and its agencies like customs and others, you will not have problems.

Can you compare the system of operation  in the past  with what is obtainable now?

In the past, the system of operation is different. In those days, when we were clearing courier shipment, we cleared directly at the arrival hall and from there you put it in the truck and move.

But now, it has to go through cargo check, courier check, that is the normal process and so it makes the operation  longer than when we’re clearing at the arrival hall. That’s the import by Air. Then  in import by sea, you make your payment through electronic payment like e-payment, collateral, etc. There are  few changes now.

Today, there is 100% examination for the process, but it was not so in the past.

Is the environment conducive for the industry operation?

Because of the improvement in communication technology, courier business has dropped ; so many letters are now sent by e-mail, phones and other electronic medium, unlike those days where more letters were coming in and going out through courier service. It is not so today due to improved technology.

But as for cargo business, that is cargo import, it is still on the increase because Nigeria is more of an importing nation than export. What we export can not be more than 30 – 40 percent of what comes in.

Recently, FG has introduced intervention fund to SMEs, Aviation and plans to do same to motor industry; do you think such funds will yield desired results when infrastructures are not in place?

Yes. If such funds are properly given to the right people, that’s if it’s channeled to the appropriate quarters for the right purpose, definitely, it will be useful and achieve results. But for people in the manufacturing sector, like you mentioned, the infrastructure on ground can not help out. The roads are not too good, there is power outage most time in some areas . So, how do you survive in manufacturing?

So, if you collect such money in manufacturing and what you’re spending on infrastructure eats deep into your profit base, or you are not making profit, you collected the money to create problem for yourself.
Some SMEs operators still complain that they find it difficult to assess the intervention fund, what’s your take on this?

Well, as far as I’m concerned, anything government handles generally will have some problem. Maybe because of its officials or the system itself. If the right system is there, fine. Whatever you want to get from government, even if it is ordinary licence, it is not always easy.

The bottlenecks are there. Half -baked civil servants and their attitude to work is very poor for an average civil servant. So, for you to get anything in the ministry even when the requirement is complete, it takes time.

What do you expect government to do to stop these non-challant attitude of  its officials because it affects the economy?

Government can do something as much as possible to remedy the situation. For instance, if somebody is applying for a licence from Custom, NCA, NAMA or any government agenciy, if government can do it in a way that if you apply today with all the necessary requirement put together, it should be able to place an ultimatum on their workers when to release such licence.

And failing  to comply, such official should be made to face penalty for delaying administrative process. Government should also provide a place where people can lodge complaints.

If government does not make provision for complaints, even ordinary registration with CAC will take time, whereas in other countries, within a day, if you apply online, pay your fees within 24 hours, you obtain your certificate.

You don’t need to see anybody, you don’t need to tip anybody and you don’t need get a consultant that would apply for you when you can read and write. There should be maximum period of time that when you apply for anything, you are sure when it’s coming out unless you are not with the necessary requirements to that effect.

Do you think that is achieveable in this part of the world, where corruption is more in the high places?

Everything depends on who is on the top head. If we still have corrupt leaders, we should not expect it. If you are the head of a family, there are certain things you don’t accept and allow in your family and your wife and children will always know that daddy doesn’t like this and mummy doesn’t want this and they will not do it.

But when you permit certain things, your children are free to do it. So it’s the same thing, leaders are like our parents, is what they want we do.

So, if there is a way they can check the abuses of the civil servants, it will encourage a lot of entrepreneurs in the economy. A lot of people are discouraged because of work ethics in the government.

Venturing into Freight Forwarding now, what is your advice for new comers?

My advice is for new comers is to try and get good knowledge of what the business is all about. How to register it.

You have to know government regulations and its agencies involved in it. This is necessary because if you don’t have good knowledge of the business and you venture into it, you may find yourself into trouble.