Importers in the country have decried the high charges imposed on Nigerian-bound transit cargoes by the government of Benin Republic, which has made it impossible for them to bring in transit cargoes through the Seme land borders.
Africa Today News, New York gathered that presently, Nigeria pays about CFA2.2m as charges on 40ft transit containers, as against CFA500,000 paid by other neighbouring countries to move the same consignment out of their port.
It has been gathered that cargo importation through Seme border has dropped by 23.09 percent in the first quarter of 2023 as a result of the retaliatory policies introduced by the government of Benin Republic on Nigeria bound import and export cargoes.
Also, export trade in the first quarter of 2023 compared to Q1 2022 dropped by 75,000 metric tonnes.
It was gathered that the drop in the period under review was due to Benin Republic anti-trade policies targeted at Nigeria in retaliation for border closure by former President Muhammadu Buhari in August 2019.
Nigeria’s immediate past president, Buhari, had shut down the land border with neighboring countries, Benin Republic, Chad and Niger over insecurity, smuggling and for food security.
Following the border closure, Benin Republic slammed retaliatory charges on Nigerian-bound transit cargoes making it impossible for Nigerian importers to bring in transit cargoes through the Seme land borders.
Also, the country slammed high charges on Nigeria bound ECOWAS Trade Liberalization Scheme (ETLS) cargoes, thereby making intra-African trade expensive and breaching the trade protocol of the Economic State of West African States (ECOWAS) trade scheme.
Confirming the development, the Customs Area Controller (CAC), Seme Border Command of the Nigeria Customs Service (NCS), Dera Nnadi, said the economic policy of the Republic of Benin that charges on goods in transit to Nigeria constitute tariff barriers to trade along the corridor, which also affected the command’s revenue.
Also speaking with LEADERSHIP Weekend, the former chairman, Association of Nigerian Licenced Customs Agents (ANLCA), Alhaji Lasisi Fanu, said shortfall of cargoes was as a result of the retaliatory policies introduced on Nigeria import and export bound cargoes by the government of Benin Republic.
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He said charges on 40ft transit containers is about CFA2.2m as against CFA500,000 paid by other neighbouring countries to move the same consignment out of their port.
According to him, the government of Benin Republic calls the payment administrative charge, but it is definitely not so.
‘Third party goods are also known as transit cargoes and they originate from South Korea, China, London among others, but those containers are not coming anymore and even if they come, it may be once in month. The only goods coming into Nigeria through Seme border now are ETLS. The 3rd party goods are not coming anymore because of the charges we pay in Cotonou.
“For instance, Nigerians pay between CFA2m to CFA2.2m in Cotonou. If we come to Seme border, we pay normal duty for Nigeria Customs Service (NCS) before containers can come into Nigeria and it’s the same Pre Arrival Assessment Results (PAAR) for Cotonou that will be used in Nigeria,’ Fanu said.
“With this, we are paying twice on a 40ft container and when we add logistics, that is much because the administrative charges we pay in Cotonou is too much and that is why the 3rd party goods are not coming through Seme border for now except for ETLS,’’ the foremost clearing agent stated.
Fanu also stated that the ETLS cargoes coming into the country have reduced due to the high charges slammed on it by the same Cotonou government.
He, however, called on the Nigerian government to engage the Benin Republic government on the high administrative charges on cargoes slammed on Nigeria-bound transit cargoes.
Also speaking, the chairman, Association of Registered Freight Forwarders of Nigeria (ARFFN), Seme border, Innocent Elum, said activities are yet to fully return to the land borders after the reopening of the border by the federal government.
He also complained about high administrative charges on Nigerian-bound transit cargoes from Benin Republic.
According to Elum, devaluation of naira also made importation through the land borders unattractive.