In March this year, the Nigerian Shippers’ Council (NSC) said that the implementation of International Cargo Tracking Notes (ICTN) would commence in August 2024 as part of strategies to block more than $3 billion cargo fraud at the seaports annually.

Currently, the type of fraud experienced in the port include: fake products, illegal firearms trafficking, illegal dumping and smuggling, shady documentation, concealment, under declaration, under invoicing and wrong classification of cargoes.

The Nigeria Customs Service (NCS) had complained in the past that importers and customs agents were indulged in wrong classification of cargoes, transfer of value, concealment and false declaration at the ports, adding that out of 100 containers imported into the country, there were hardly 10 containers with genuine declaration.

However, the intention of the council is being opposed by some interest groups, who complained that ICTN would add to their charges in the port, while boosting government’s revenue fiscal drive.

For instance, a former Vice President, Manufacturers Association of Nigeria (MAN), Lagos Zone, Chief John Aluya, had raised concerns that the introduction of ICTN would lead to a new fiscal burden on Nigerian shippers and consequently inflated prices for imported goods.

When it was first introduced in 2015 as Advanced Cargo Tracking Note (ACTN), MAN opposed the system, saying that its implementation would further increase the cost of doing business for manufacturers, who rely mainly on imports for raw materials and machines.

However, after several lobbies to scuttle its passage failed last week, there was another thick opposition against the implementation of the tracking note as Chairman of the Shipping Lines Association of Nigeria (SLAN), Boma Alabi, raised strong opposition to the proposed Cargo Tracking Bill currently under consideration by the Federal Government, describing it as another toll gate that will impose additional financial burdens on businesses and consumers.

Specifically, Boma said that it would not enhance the ease of doing business and trading in Nigeria as being contemplated by the government.

She said that after an investigative hearing by the House of Representative committees on Shipping Services and Related Matters, Customs, Port and Harbor and Maritime Safety, Education and Administrations on the circumstances surrounding the non implementation of ICTN in the port.

According to her, Nigeria’s shipping industry is already heavily burdened by bureaucratic red tape and does not need the additional layer of oversight that the proposed Cargo Tracking Bill would impose. In addition, Boma stressed that exporters and importers could typically track their shipments directly on the websites of the respective shipping lines.

Losses

Notwithstanding these excuses, the NSC’s Executive Secretary, Barr. Pius Akutah, revealed that Nigeria had lost about $2.5 billion dollars in five years, $500 million yearly because of non-implementation of the tracking notes. Akutah said: “In the last five years, they have not done it. We

Implementation of ICTN is an opportunity for the Federal Government to curb fraud, strengthen the port economy, security and nation’s growth

are losing that amount in dollars. So in Nigeria today, there have been some attempts that were made at implementing this.”

Also, the Minister of Marine and Blue Economy, Gboyega Oyetola, who was represented by the Director of Maritime Services, Mr Babatunde Sule, at the hearing, said that though the Federal Executive Council (FEC) of the past administration approved the contract at the tail end of the administration, the process of award of the contract was wrong.

According to the minister, “the process that led to the approval of the contract by the previous administration was wrong. We had several stakeholders’ meetings. We even invited the lead partner for a meeting. We had several discussions on this issue.

All has not yet been decided. Time won’t let me say what the minister has continued to do in his efforts to see that this deal is.

Transparency

Regardless of these, the Chairman of the Committee on Shipping Services and Related Matters, Abdussamad Dasuki, explained that the ICTN was far more than an administrative requirement but an essential tool designed to bring transparency, security and operational efficiency to the movement of cargo across borders.

He added: “Despite its approval and the commitment of various stakeholders, progress towards implementing the ICTN had been hampered by significant challenges.

“Among these challenges, we believe are the bureaucratic delays competing interests among agencies, limited coordination between key stakeholders and the duplication of contracts awarded for its implementation.

“Today’s gathering is an opportunity to tackle these issues head-on. Our goal is to identify the root causes of these delays, address conflicted interests, improve revenue generation by plugging the loopholes that allow illicit cargo such as arms and drugs, to sleep through our ports and ultimately unlock the potential of the ICTN to bring Nigeria’s maritime industry in line with global best practices.

“The insights and contribution from all participants today will be instrumental in shaping the 10th House of Representatives legislative measures required to make the ICTN operational.”

Last line

Implementation of ICTN is an opportunity for the Federal Government to curb fraud, strengthen the port economy, security and nation’s growth.

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