LCCI accuses PAAR of promoting congestion at the ports

The Pre-Arrival Assessment Report (PAAR) newly-introduced by the Nigeria Customs Service has been accused of being responsible for the current delay in goods clearance at the ports. The Lagos Chamber of Commerce and Industry (LCCI) which levelled the accusation lamented that the slow down in cargo clearance process has seriously affected the cost of doing business in the country.

The Chamber in a statement by its President, Remi Bello, said the delay at the ports had become a major cause for concern for the business community.

The LCCI had earlier urged the Customs, shipping companies and terminal operators to seek ways to waive the accumulated demurrage for those concerned because the delays “were not caused by importers and it would be unfair if they are compelled to pay for what is not their fault.”

“Persistent delays in the clearance of cargo at the Lagos ports have become a major cause for concern for the business community. One of the major shortcomings of the investment environment in Nigeria is the speed of cargo clearance at the ports; the 48-hour target set by government is far from being achieved,” said Bello.

He listed the consequences of the current situation to include high demurrage charges and disruption of production schedules, as raw materials are not delivered in good time to factories.

Others are high risk of corruption at the ports, risk of exacerbation of inflation, and high cost of borrowed funds by importers.
Other causes of the delay apart from PAAR, he said are: frequent breakdown of the Customs server; delays in cargo release from shipping lines and tight deadlines for cargo examination booking.

In order to ensure speedy evacuation of cargoes from the ports, Bello called for the resuscitation of the rail system. He said: “Above all, the rail system designed to evacuate cargo from the Lagos ports need to be resuscitated as a matter of utmost urgency. The menace of trucks, trailers and tankers on Lagos roads, in particular, and the national road network in general, has assumed an unbearable dimension.”