FG to Boost Trade in Africa via Shipping Cost Reduction

August 28, 2019
FG to Boost Trade in Africa via Shipping Cost Reduction

By Adedapo Adesanya

The Nigerian Government has reiterated its commitment to boosting trade on the African continent through the collaborative effort of reducing the cost of shipping.

This was disclosed at the Sub-Regional Summit on Unfair Shipping Surcharges and High Local Shipping Charges at the Ports of West and Central Africa in Abuja on Monday,

According to the Minister of Transportation, Mr Rotimi Amaechi, who represented the Vice President, Mr Yemi Osibanjo, Federal Government was aware of the disturbing cost of transportation of goods through the ports in the sub-region due to freight rates and arbitrarily imposed surcharges.

He said that government through the Nigerian Shippers’ Council (NSC) had put in place machinery to address some of these challenges posed by the high cost of doing business in the country.

He also added that the government was equally mindful that member-states of the Union of African Shippers Council (UASC) were concerned about the lack of consultation, timing and structure of these surcharges.

It was disclosed that the aim of the summit was to adopt a common position on how to reduce the incidences of unfair surcharges and related issues.

“There is a need for West and Central African countries to come together and adopt common political-diplomatic and operational strategies that will positively impact on the economy of the sub-region.

“This can be done through the constitution of a standing group of experts to represent the sub-region and engage ship owners on surcharges and related issues.

“Nigeria will not hesitate to take appropriate measures including legislation to check these unfair trade practices.

“And I affirm the commitment of the government to adopt the resolutions reached this meeting and our determination to implement them to reduce the cost of doing business, boost trade and develop the sub-region,” he said.

The minister then reiterated the need for the UASC member states to collaborate to check activities of shipping lines servicing the ports in the sub-region.

Amaechi also stressed the need for a direct consultation with the shipowners rather than the use of third parties to reduce cost.

“The Federal Government through the NSC has been using its influence in the Global Shippers’ Forum (GSF) to resolve cases affecting Nigeria’s trading interest,” Amaechi said.

Also speaking at the event, Mr Hassan Bello, the Executive Secretary of NSC, while reiterating the importance of collaboration between UASC member states, said NSC had been engaging Nigeria’s shipping lines on the reduction of shipping charges.

According to him, the reduction in cost is the responsibility of all stakeholders including the government in ensuring the provision of modern, efficient, integrated and connected transport infrastructure.

“It is also important that the government encourages transparent processes and procedures and generally ensure that an efficient, a competitive and friendly environment is created.

“It is important to state that in the long run, arbitrary and unilateral increase in charges will not benefit operations or general procedures in our countries.

“Transport should be appropriately priced with the aim of providing balance and equilibrium,’’ Mr Bello added.

Adedapo Adesanya

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

Leave a Reply

TraderMoni, MarketMoni Beneficiaries Repaying Loans--Osinbajo
Previous Story

TraderMoni, MarketMoni Beneficiaries Repaying Loans–Osinbajo

Subscribers Commend 9mobile for 9x Offer
Next Story

Subscribers Commend 9mobile for 9x Offer

Latest from Economy