Get Guardian on GoogleSays functional unified trade system will attract $3b in private investments
Cargo clearing system inefficiency at the ports is costing Nigeria between N500 billion and N900 billion yearly in unrealised revenue, administrative duplication and lost productivity, the Sea Empowerment and Research Centre (SEREC) has disclosed.
The research body stated that whereas enhanced predictability and port transparency could attract $2 billion to $3 billion in private logistics and maritime investments within five years, expanding the nation’s Gross Domestic Product (GDP) contribution from the maritime sector by up to 1.5 per cent.
According to a report by SEREC and signed by the Head of Research, Dr Eugene Nweke, yesterday, the inefficiencies and absence of a unified National Single Window (NSW) have continued to push regional competitiveness and drive shippers to neighbouring ports in Cotonou, Lome and Tema, which already operate harmonised digital trade platforms.
In the report titled, “Nigeria’s Path Toward Seamless Cargo Clearance: The Imperative of a Functional National Single Window,” SEREC lamented that multiple attempts at establishing a central trade facilitation network had faltered due to inter-agency rivalries, shallow implementation frameworks and vested interests.
The group observed that despite notable digital migration strides made by the Nigeria Customs Service (NCS), obstacles still persist, which include the lack of interoperability among relevant port and border agencies, system integrity compromises leading to periodic disruptions and downtime, weak private sector integration and stakeholder consultation and overemphasis on revenue over trade facilitation objectives .
SEREC’s analysis revealed that a fully operational NSW could boost Customs revenue by about 20 per cent yearly, adding up to N1.2 trillion in earnings.
The group added that it could also reduce cargo dwell time by 35 to 45 per cent and cut overall trade transaction costs by 25 per cent, leading to estimated logistics and demurrage savings of between N300 billion and N400 billion yearly for the private sector, enhancing Nigeria’s global logistics competitiveness index and easing the cost of doing business.
The research body emphasised the importance of developing and integrating a homegrown national digital system that reflects Nigeria’s trade realities and suits its peculiarities, rather than over-reliance on foreign consultants or off-the-shelf software.
