Notwithstanding
the challenges posed to the non-oil export sector last year, members of the
Organised Private Sector (OPS) have identified the provision of key
infrastructure and implementation of revised incentives as measures to aid
development in the sector.
According
to the Manufacturers Association of
Nigeria (MAN) and the Lagos Chamber
of Commerce and Industry (LCCI), production cost by exporters remains high,
largely because of infrastructure issues.
The
stakeholders noted that such operating costs have affected the competitiveness
and the profit margin of exporters. They added that about N550 billion export
stimulation fund promised by the CBN is yet to be made available to exporters,
stressing the need to properly implement the new Export Expansion Grant (EEG) including defraying the outstanding
debts.
“Facilities for testing of the quality of the export products and
the generation of quality reports are still lacking in the country. Reliable
testing facilities are necessary for the generation of credible quality
assessment report. The solid mineral sector is the most affected by this
challenge. It is therefore very important that government puts in place
standard quality testing laboratories for exporters and for export products in
2018.
“Access roads to Lagos ports were nightmares for exporters in 2017.
The delays posed significant risks to the quality of export products, especially
agricultural export products.
“The cost of transportation of export products from the hinterlands
to the cities has become astronomical. This is also a major factor affecting
the competitiveness of export products. This is particularly the case for
export products that have a lot of weight,”
the OPS added.
The
OPS also raised concerns about the incursion of foreigners into the export of
primary products and the consequent crowding out of domestic exporters was a
major concern for the exporting community in 2017, noting that export of
processed food is a key example of such activities.
They
also noted that exporters expressed concern over the introduction of exorbitant
handling charges by Terminal Operators at the Lagos port. N40,000 was imposed
on 20-foot container and N60, 000 on 40-foot container for export.
It has
been revealed that no fewer than 2,700 vehicles were indiscriminately parked
from Apapa to Surulere up till Ikorodu road and they did not spare the flyover
bridges in along the axis, thereby causing reduction in lifespan of the
bridges.
Besides,
the hectic traffic logjam caused by these trucks are by no small measure
wreaking havoc on the roads, which may be fast becoming dilapidated, just as
the Apapa roads.
The
Director-General of MAN, Segun
Ajayi-Kadir, had noted that the traffic jam on these roads currently
hampers access to the sea ports, paralysing economic activities, engendering
loss of man hour, enormous wastage of fuel, huge increase in cargo dwell time,
causing preventable accidents and heightened security risk.
He
added that trucks hired by members of the OPS to carry cargoes cannot have easy
access to the port to lift or deliver cargoes and those lifting cargoes cannot
come out of the port because of the long hours of traffic.
“Imagine a situation where it is taking between five and eight weeks
for our members to take delivery of their cargoes of vital raw materials. These
same port users now pay between N350,000 and N400,000 as cargo transport cost
as against the standard rate N100,000 per cargo.
“Most worrisome is that fact that this challenge is also leading to
heavy revenue loss to Government, overly too long turnaround time for delivery
of cargoes, huge transportation cost, avoidable raw materials stock-out,
inability of companies to meet set production targets to mention but a few.
This by all standards is not business friendly”. (Guardian)
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Have you heard this? Many
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of exporting commodities to foreign countries. Do you know why? They were not
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