The rising cost of clearing goods in Nigerian ports is a big threat to the livelihood of licensed customs agents. ANOZIE EGOLE looks at the new lines of businesses they are exploring to stay afloat
Numerous challenges are stifling the ease of doing business in the maritime sector, ranging from the high cost of clearing goods due to exchange rate summersault among other factors.
This worrisome development has made some licensed customs agents disillusioned, not knowing the next move to make to put food on the table for their families.
Some of these agents have been made jobless and some lost their lives while others who couldn’t cope chose to relocate back to their villages in a bid to reduce the cost of living.
Findings have also shown that the long lists of items under prohibition in Nigeria are other factors affecting practitioners in the maritime sector as this limits the number of goods one can import.
The PUNCH reported recently that 60 per cent of licensed customs agents operating in the nation’s maritime industry have dumped the profession for commercial motorcycling (okada riding) and other menial jobs due to the biting effects of the floating exchange rate.
The operators believed that the Central Bank of Nigeria achieved more stability during the time of Godwin Emefiele as the governor of the apex bank than happenings in the current dispensation.
Founder of the National Council of Managing Directors of Licensed Customs Agents, Lucky Amiwero, admitted that although Emefiele’s administration at CBN affected the maritime sector, but not up to what the sector was currently passing through in the new administration.
“Emefiele’s administration affected the maritime sector but not as much as what the sector is facing now. The sector is more affected. Almost 30 per cent of licensed customs agents have left the job because of the floating exchange rate. They have all gone into okada riding and all other businesses,” he said.
Amiwero explained that during Emefiele, the push-up in the exchange rate was not as drastic as it is now.
“But during the time of Emefiele, the forex was perfectly stabilised for a very long time before you see a push-up. And then, a push-up is not as drastic as it is now. The push-up now is affecting both import and export because when you talk about export, you’re talking about production within.
A Deputy President of the National Association of Government Approved Freight Forwarders, Nnadi Ugochukwu, said over 60 per cent of licensed agents had dumped the job to look for other things to do.
“The maritime industry under Emefiele was stifled with excessive taxation and you know over-taxation is not a good economic policy. Even as we are talking now the current system is still suffering under the policy.
“The Nigerian import prohibition list is very long. We should encourage local production and export. You also look at areas where you have a cooperative advantage to produce and export, not where you don’t have a comparative advantage,” Ugochukwu said.
Other things they can do
However, for some of these practitioners as a way of keeping up, there are few other things they can do to remain afloat and run their families and expenses and one of them is, ship chandelling.
Ship chandelling which is the act of providing supplies or equipment for ships and their seafarers, is a multi-billion naira sector in Nigeria that is not getting the needed attention it should get.
Also, most agents have been blinded by the opportunities that abound in exportation as the majority of them focus more on import alone which at the moment, seems to be saturated. This aspect has the opportunity of bringing forex into the country and addressing the scarcity of forex. Even though export has its challenges it seems better than importation and this is another area these agents can look into as an alternative to importation.
Having been in the maritime for some time, it would be easier for an agent to easily adjust and start practising ship channelling.
These agents can also go into trucking consultancy which is simply getting trucks for agents who need the services of trucks to carry their cargo it doesn’t necessarily mean one should have a truck.
With this, the agent is sure of his daily meal though it may not be as it used to be, it is going to be better than not doing anything at all.
Before now, some of them were in the business of car delivery. A situation where they would help you deliver your car to any destination of your choice after purchase.
Another clean business for these licensed agents aside from clearing is assisting people in car purchase both buying of Nigerian used and foreign used. Being in the clearing business sometimes the person an edge to be in a better position to negotiate properly and also ensure that the duties are paid in full.
Speaking on these alternatives, a licensed agent, Mr. Toochukwu Nwaigbo, admitted that as a way to stay afloat and handle family issues, he has started truck consulting.
“I am now into trucking because it is better than staying idle and not doing anything. The only challenge there is that you won’t be making much gain. The reason is that as a consultant, you don’t own a truck you only negotiate with the owner of the truck for some percentage. In a situation where the owner fails to agree, you would not have anything left,” he said.
For Johnpaul Ejiogu, a licensed customs agent, makes more money helping people deliver their cars to their destinations from Lagos since the clearing job is no longer lucrative the way it is used to be.
“I have been doing this since 2007 and it pays me better because you don’t have anything to spend. As far as the car is properly cleared and duties paid, all you need to do is to buy fuel and move. This is better than moving from one office to the under pleading for one thing or the other,” Ejiogu said.
Besides the fact that delving into these areas would provide income for these displaced licensed agents, it would also help open up those sectors and assist the government with the needed revenue generation.
