The Federal Government’s annual revenue target for its maritime agencies can be achieved and even exceeded with the implementation of effective trade facilitation procedures, according to Emeka Akabogu, Senior Partner at Akabogu and Associates.
Presenting his paper, “Legal Issues in Nigerian Seaport Trade Facilitation,” at the 17th International Maritime Seminar for Judges in Abuja, Akabogu argued that, contrary to some beliefs, full implementation of trade facilitation would not negatively impact revenue collection. Instead, it would increase the government’s revenue.
He identified several obstacles to trade facilitation, including complex processes exploited for personal gain by officials, flawed strategies, ineffective tools like the 100 percent physical inspection of imported cargoes, and a negative culture. Akabogu also noted resistance from those benefiting from the current system to the positive changes needed for effective trade facilitation.
Akabogu emphasized the high financial cost of delays, which leads to market distortions. Inefficient trade practices deter investments, affecting manufacturing, job creation, and overall quality of life.
Quoting the Lagos Chamber of Commerce and Industry’s publication, “Costs of Maritime Port Challenges in Nigeria,” Akabogu highlighted that Nigeria’s seaports remain the most expensive in West Africa. Another report pointed out that efficient port operations are a major driver of trade and investment activities across countries. However, Nigerian ports are among the worst in the world, plagued by import process delays, corruption, and infractions by both government officials and port users. The report indicated that 41 percent of the cost to import is due to inefficiencies or informal payments.
