Nigeria Loses $500m Annually to Non-Implementation of ICTN

By Adedapo Adesanya

The Shippers Council of Nigeria says Nigeria has lost approximately $2.5 billion over the past five years, translating to $500 million annually, due to the non-implementation of the International Cargo Tracking Notes (ICTN).

The Executive Secretary of council, Mr Pius Akutah, disclosed this during an investigative hearing on the circumstances surrounding the non-implementation of the ICTN and identifying the challenges faced by the NSC, organised by the House of Representative Committees on Shipping, Excise, Customs, Ports and Harbor and Maritime Safety, Education and Administrations.

“Nigeria has lost almost $2.5 billion over the last five years due to the failure to implement this system. There were investigations, including those conducted by the EFCC, which contributed to the delay. The system was in place for only two years before it was halted and since then, we have incurred these losses.

“Over the past five years, we have not implemented the ICTN, resulting in a loss between $1 billion and $5 billion. If we had implemented it, that is the amount we could have contributed to the economy within two years. Although the period of implementation was short, it generated significant income for the country, illustrating just how much Nigeria is missing out,” he said.

The Minister of Marine and Blue Economy, Gboyega Oyetola, who was represented by the Director of Maritime Services, Mr. Babatunde Sule, said that though the Federal Executive Council in the administration of Muhammadu Buhari approved the contract, the process of the award was wrong.

The Minister’s representative stated: “Last year, the FEC approved a contract. At the tail end of the last administration, the government approved five companies. I know there was a fake approval, regarding this contract. I am also aware that it was given to five companies.

“I also learned that four of the companies signed an agreement, with the fifth not signing. I think that was what stalled this whole process. The process was wrong.

“At the assumption of the office of the minister, he made frantic efforts to resuscitate this contract. We had several stakeholders’ meetings, we even invited the lead partner for a meeting, we had several discussions on this issue. All has not yet been decided. Time will not let me say what the Minister has continued to do in his efforts to see that this deal is actualised.

Meanwhile, the Chairman of Shipping lines Association of Nigeria, Mr Boma Alabi, has kicked against the proposed Cargo Tracking Bill, describing it as an unnecessary burden in a sector already overwhelmed by bureaucratic regulations, adding that the bill would not improve the ease of doing business in Nigeria.

“The shipping industry in Nigeria is already overburdened with red tape and certainly does not require another layer of bureaucracy which is what the proposed Cargo Tracking Bill will result in.

“All exporters and importers can track their goods on the website of the shipping lines generally speaking. In addition, the shipping lines have to upload their manifest to the Customs portal which is connected to the Central Bank of Nigeria single window.

“The ICTN without streamlining the existing process will only result in further delays and congestion.”

The chairman of the House Committee on Shipping Services and Related Matters, Mr Abdussamad Dasuki, said the ICTN is not just an administrative requirement but an essential tool designed to bring transparency, security, and operational efficiency to the movement of cargo across borders.

“Despite its approval and the commitment of various stakeholders, progress towards implementing the ICTN has been hampered by significant challenges. Among these challenges we believe are the bureaucratic delays and competing interests among agencies, limited coordination between key stakeholders and the duplication of contracts awarded for its implementation.

“Today’s gathering is an opportunity to tackle these issues head-on. Our goal is to identify the root causes of these delays, address conflicted interests, improve revenue generation by plugging the loopholes that allow illicit cargo, such as arms and drugs, to slip through our ports, and ultimately unlock the potential of the ICTN to bring Nigeria’s maritime industry in line with global best practices.”