The Assistant Director and Head of the Compliant Unit at the Nigerian Shippers’ Council (NSC), Bashir Mohammad, disclosed several critical issues during a significant meeting held in Lagos. This meeting involved the Council, the European Union Delegation, and the Economic Community of West African States (ECOWAS). The discussions centered around the myriad of complaints and challenges affecting port operations in Nigeria.
Complaints from Stakeholders
Mohammad highlighted that the Council faces a myriad of complaints from various stakeholders. These stakeholders include service providers, shipping companies, terminal operators, consolidators, and consumers. Each group has voiced concerns about different challenges that are currently impacting port operations. These complaints range from operational inefficiencies to financial burdens imposed by various practices within the port system.
Financial Recoveries by the Complaints Unit
In addressing these complaints, the Complaints Unit of the NSC has been actively working to resolve issues and recover funds. Mohammad reported that in 2023, the unit successfully treated valid complaints and recovered a substantial amount of N362.1 million. This was a significant increase compared to the N203.5 million recovered in 2022. The unit’s efforts in previous years also yielded notable recoveries, with N2.5 billion in 2021 and N35.9 million in 2020. These recoveries highlight the unit’s ongoing commitment to addressing stakeholders’ grievances and ensuring financial accountability.
Recurring Grievances with Shipping Companies
Among the recurring grievances directed at shipping companies, Mohammad pointed out several key issues. One major concern is related to container logistics. Stakeholders have reported delays in container deposit refunds, which can significantly impact their operations. Additionally, there are excessive demurrage and detention charges that stakeholders find burdensome. Unexpected surcharges imposed by shipping companies further exacerbate these issues, leading to financial strain on importers and exporters.
Criticism of Shipping Company Practices
Mohammad also noted that there have been instances where shipping companies impose charges on subsequent cargo shipments before releasing them. This practice has drawn significant criticism due to its impact on importers and exporters. The additional charges can create financial hurdles and disrupt the smooth flow of goods, affecting the overall efficiency of port operations.
Discrepancies in Bill of Lading Clauses
Another critical issue highlighted by Mohammad is the discrepancies in the bill of lading clauses. Many importers reportedly overlook or misunderstand these contractual terms, leading to disputes and penalties imposed by shipping companies for non-compliance. These discrepancies can result in financial losses and operational delays, further complicating the logistics process.
Infrastructure Shortcomings at Ports
Mohammad emphasized that infrastructure shortcomings at ports also contribute to operational inefficiencies. One significant issue is the insufficient provision of holding bays. This lack of adequate infrastructure exacerbates problems such as cargo damage, pilferage, and theft. The absence of proper holding facilities can lead to increased risks and financial losses for stakeholders.
Unauthorized Triangulation of Containers
The unauthorized triangulation of containers to inland dry ports without consignee consent is another issue that complicates logistics and regulatory oversight. Mohammad pointed out that this practice creates additional challenges for stakeholders, as it disrupts the planned logistics flow and can lead to regulatory complications.
Arbitrary Practices in Seaport Terminals
Within the seaport terminals, Mohammad highlighted several arbitrary practices that contribute to operational inefficiencies. One such practice is the arbitrary allocation of storage space, which can lead to delays in container examination. These delays exacerbate port congestion issues, making it difficult for stakeholders to efficiently manage their cargo.
Delays in Cargo Clearance
Delays in cargo clearance due to port-related damages have continued to be a source of contention. Despite efforts by the NSC to resolve such disputes through established protocols, these delays persist. Mohammad noted that these delays can significantly impact the overall efficiency of port operations and create financial burdens for stakeholders.
Storage and Port Charges on Stemmed Containers
The application of storage and port charges on stemmed containers, alongside inconsistent barging practices, has triggered numerous complaints. Mohammad explained that these charges and practices create additional financial burdens for stakeholders and complicate the logistics process.
Alien Charges and Other Contentious Issues
Mohammad also disclosed the presence of alien charges and other contentious issues that have been a focal point of the NSC’s efforts. These charges add to the financial burdens on stakeholders and create additional challenges in managing port operations efficiently.
Active Engagement with Industry Players
To address these issues, the NSC’s Complaints Unit has been actively engaging with industry players. Mohammad emphasized that the unit is working to streamline processes and ensure compliance with established guidelines. By addressing these issues head-on, the council aims to decongest the ports and foster a more conducive environment for trade facilitation and economic growth at Nigerian ports.
Challenges Faced by the Complaints Unit
Despite these achievements, the Complaints Unit faces several challenges. One significant challenge is the provision of fictitious addresses by importers, which complicates the resolution of disputes. Additionally, there are jurisdictional limitations in cases involving consignees’ disputes. These complexities underscore the ongoing need for robust regulatory oversight and collaborative efforts among all stakeholders.
In conclusion, the meeting between the NSC, the European Union Delegation, and ECOWAS highlighted several critical issues affecting port operations in Nigeria. The NSC’s Complaints Unit has been actively working to address these issues and recover funds for stakeholders. However, ongoing challenges necessitate continued efforts to ensure efficient and effective port operations.
Protest by Ipo Community Women
In the early hours of Tuesday morning, a group of angry women from the Ipo community barricaded the entrance to the only road leading to the airport. The women were chanting, dancing, and even cooking on the road, which caused significant disruption to access to and from the airport. This, in turn, led to delays in flight operations, affecting numerous passengers and airport staff.
Government Intervention
Secretary to the State Government, Dr. Tammy Danagogo, addressed newsmen after a closed-door meeting held at the Government House on Tuesday. The meeting included Governor Fubara, women leaders and chiefs of the Ipo community, and the airport management. Dr. Danagogo announced that both parties had agreed to resolve their differences amicably.
He noted that the women had agreed to withdraw from barricading the access road to the airport. In return, the management of the Federal Government facility promised to address the community’s concerns by implementing key corporate social responsibility (CSR) policies. These policies aim to meet the expectations of the host communities, ensuring that their needs and grievances are adequately addressed.
Immediate Government Action
Dr. Danagogo emphasized that the government acted swiftly upon being briefed about the protests at the airport. The government immediately invited all parties to a meeting to resolve the issues. This prompt action by the government highlights its commitment to maintaining peace and ensuring that the concerns of its citizens are addressed promptly.
Appreciation from Representatives
Hon. Boniface Emerengwa, who represents the Ikwerre/Emohua Federal Constituency in the House of Representatives, expressed his gratitude to Governor Fubara for his swift response. He acknowledged the governor’s efforts in ensuring that the grievances of the women protesters were immediately addressed. Hon. Emerengwa also commended the people of the Ipo community for their patience and understanding over the years. He assured them that he would work in synergy with the state and local governments to ensure that the dividends of democracy reach all communities, including Ipo.
Concerns of the Ipo Community
Dr. Darlington Orji, Chairman of the Caretaker Committee of Ikwerre Local Government Council, also spoke at the meeting. He lamented the neglect of the airport host communities over the years, particularly in the areas of employment and communication. Dr. Orji expressed satisfaction with the governor’s promise to provide an alternative access road for the community. He also challenged corporate organizations to live up to their social responsibilities by addressing the basic development needs of their host communities.
Commitment from Airport Management
Mrs. Lynda Ifesinachi Ezike, the Port Harcourt Airport Manager, thanked Governor Fubara for his quick intervention in resolving the crisis. She assured all stakeholders, including the Ipo community, of the new management’s commitment to addressing their concerns. Mrs. Ezike, who is also the Regional General Manager, South-South of the Federal Airports Authority of Nigeria (FAAN), emphasized the importance of maintaining cordial relationships with host communities. She noted that a peaceful operating environment is essential for the airport business to thrive.
Importance of Host Communities
The Ipo community is one of the major hosts of the Port Harcourt International Airport, located in Omagwa in the Ikwerre Local Government Area of Rivers State. The community’s proximity to the airport makes it a crucial stakeholder in the airport’s operations. The recent protest by the women of the Ipo community highlights the importance of addressing the needs and concerns of host communities to ensure smooth and uninterrupted operations at the airport.
Conclusion
The successful mediation by Governor Siminalayi Fubara between the management of Port Harcourt International Airport and the Ipo community is a testament to the importance of dialogue and swift government intervention in resolving conflicts. The agreement reached between both parties ensures that the concerns of the Ipo community will be addressed, while the airport management can continue its operations without further disruptions. This resolution highlights the significance of corporate social responsibility and the need for continuous engagement with host communities to foster a peaceful and productive environment.
