‘Revenue-tariff structure crippling trade, fuelling inflation’

Former Minister of Finance and Coordinating Minister of the Economy, Wale Edun

Concerned stakeholders in the freight forwarding and clearing sector have urged the Federal Government to urgently review the current revenue generation tariff structure, stricter enforcement of local content laws and the introduction of policy reform to create a more balanced and inclusive operating trade environment.

The stakeholders, who spoke during a media engagement in Lagos, warned that the persistent hike in tariffs is stifling trade, discouraging indigenous participation, driving businesses out of operation and worsening economic hardship across the country.

Speaking on behalf of the group, a private practitioner, Kenneth Ofurum, said the current tariff regime has made it increasingly difficult for freight forwarders, logistics operators and importers to operate, noting that many businesses are shutting down due to rising costs.

He stressed that government policies must be implemented with a “human face”, adding that the current policy approach to revenue generation has put undue pressure on operators, which is ultimately being passed on to consumers through higher prices of goods and services, with inflation rising.

Ofurum also noted that the hike in tariffs has led to a surge in unclaimed and overtime cargo at the ports, as many importers are unable to meet the financial demands required to clear their goods, leading to huge demurrage that is difficult to offset.

Ofurum also raised concerns over what he described as the systematic sidelining of indigenous operators, alleging that foreign interests are increasingly taking over roles traditionally reserved for Nigerians in the clearing and forwarding value chain.

He emphasised that the industry, which cuts across logistics, documentation, marine services and legal operations, has historically employed thousands of Nigerians, warning that continued neglect of local content could further worsen unemployment.

Ofurum further stressed that critical stakeholders must be carried along in the design and implementation of major reforms, including digital platforms such as the National Single Window and the B’Odogwu, to avoid technical glitches that cripple trade

Also speaking, Managing Director of Harsecom Logistics Limited, Haruna Omolajumo, underscored the need for deliberate government policies that would guarantee local participation in maritime business.

Omolajomo noted that in other countries, including Ghana, foreign companies are required to partner with local operators, ensuring that a significant share of business activities remains within the domestic economy.

He lamented that the absence of such structured policies in Nigeria has allowed foreign firms and concessionaires to dominate the sector, often to the detriment of local businesses.

Omolajumo also highlighted the sharp increase in port-related charges, revealing that costs, which were previously within N21,000, have now escalated to about N600,000, making it difficult for smaller operators to remain in business.
The stakeholders maintained that while the government has the responsibility to generate revenue, such efforts must not undermine trade facilitation or cripple indigenous enterprises.

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