Business Leaders Reveal Why Nigerian Economy Remains Weak

Business Leaders Reveal Why Nigerian Economy Remains Weak

Reverend Emmanuel Agubanze, a professional freight forwarder and businessman has linked the weak Nigerian economy to poor ports management and inefficiencies.

Agubaze who is the Head of Special Duty, at the National Association of Government Approved Freight Forwarders (NAGAFF) blasted the federal government for failing to significantly develop the ports which directly affects leads to a weak Nigerian economy.

In an exclusive interview with THECONSCIENCE, Agubanze stated that the Nigerian government was destroying the economy through poor management of the Nigerian ports as nothing has improved for years despite the promises, year after year.

The very experienced businessman noted that the terrible inefficiencies at the Nigerian port was not just damaging business for importers but damaging the Nigerian economy. “The truth is that Nigeria is an import driven country, so, anything that hinders import business slows down trade in the country.

“The cost of doing business at the port is ridiculously high. Indeed, the high cost of services, obvious inefficiencies, congestion and corruption which have characterize the Nigerian port have badly affected the Nigerian economy and are responsible for the nation’s current economic woes.

“Stakeholders had expected so much following the decision of government to allow professionals port managers run the operations through the port concessioning program but our hopes have been dashed.

“Infrastructure is poor. There’s no space for holding bay and everywhere is badly congested. Instead of clearing cargoes in 2 to 3 days, we now do weeks.”

He added: “the Port trade volume was currently at about 40% of its ideal capacity. Instead of clearing 300 to 400 containers daily, we are doing around 150 or thereabouts.

“Efficiency is very low. capacity is weak. No space. Vessels are delayed endlessly. Though the process is supposedly automated, there are multiple physical inspections and checks which waste too much time, and encourages corruption to thrive at the port.

“There is no light at the port some times. What level of security assurance do you have to move your container from the port if it’s cleared by 12 midnight? he asked.

In the same version, Okafor Stephen,
General Manager Operations at National Association of Road Transport Owners NARTO also said many factors responsible for cargo delays, port congestion and weak economy

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So many factors are responsible. For example, the case of bad roads, especially within Tin can axis. This has been a key challenge. The road construction has been on for long but not finished yet. This alone accounts for 50% of the problem.

He added: “Customs multiple checking and verification points contribute to the problem.;Also, law enforcement agencies while controlling traffic, also delay traffic flow for personal gains best known to them.The truth is that the problem of the system, is as old as the system.

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Indeed, most of the problems are from the government. For instance, the port should have its holding bay for parking trucks but because of port concessions, no space. Trucks come in and since there is no space to park they stay on the road except those with private garage. What about trucks from the North?

In terms of the impact of port congestion on trade volume I will say it has been bad. For instance, you can not compare the volume of trade now to five years ago.

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Business has at least dropped by between 40 and 50% because of the issues enumerated. Imagine a trucker who is supposed to in one or half day run the round and pick a container now takes two weeks just to access the port.

All the stakeholders are working for sustainable solutions. Business has really dropped significantly and its not good for the Nigerian economy.