NEEDS & PRIORITIES OF THE MANUFACTURING SECTOR IN A SINGLE

WINDOW ENVIRONMENT

CHIEF KOLA JAMODU, OFRPresident Manufacturers Association of Nigeria

OUTLINE

IntroductionCurrent Port ChallengesManufacturers Association of NigeriaSingle Window ConceptNeeds & Priorities of ManufacturersRecommendations

INTRODUCTION

“Our major challenge as a Nation is our inability to turn available abundant resources into significant economic strength”

Israel Marshal.

 

Nigeria is Blessed With littoral advantage that offers

attractive maritime investment opportunities which stands the nation out in the world as investors’ destination of choice.

However, the huge potentials of the sector are scarcely harnessed for the benefit of sustainable economic development.

The Economy

Mono-cultural Weak infrastructure Policy inconsistency High cost of doing business Complex and deficient bureaucracy Import dependent- Input and finished good. Diversification- challenge and preoccupation

Economy…………cont

Port operations

• Heavy Traffic• Weak and inadequate infrastructure• Complex bureaucratic and procedural

requirements• Port management deficiency• Deficient entrepreneurial orientation

CURRENT PORT CHALLENGESInefficient use of available resources and other inadequacies

of the system inhibit beneficial international and cross border trade evidenced by the current port challenges:

Dearth of port infrastructure, Port congestions & no holding bay for scanned cargoes and

empty containers Numerous & Complex Documentations, High transaction costs & Ambiguous procedures, Multiple Regulatory Agencies Unauthorized diversion of cargoes Indiscriminate block-staking of containers Inefficiency & corruption to mention few.

Impact on Business

Unfortunately, all of these are impacting negatively on business operations and grossly inhibiting the ability of businesses to effectively play their role as catalysts for employment generation and wealth creation.

MANUFACTURERS ASSOCIATION OF NIGERIA

A business membership Organization established in 1971 to promote an enabling environment for industrial development, growth and prosperity of

the society at large in partnership with government and other stakeholders.

Over 2000 members; HQ in Lagos, Liaison office in Abuja 14 Branches & 10 Sectors with 76 Sub-sectors Statutorily represented on Governing boards of several

tertiary institutions, regulatory, investment and business promotion agencies.

Operates in Partnership with international Organizations & Development Partners

ISSUES OF CONCERN….manufacturers are major users of the ports.

The manufacturing sector imports 60% of its raw materials needs and over 90% of its plant, machinery and spares.

The cost of inefficient cargo clearing system to manufacturers

Raw materials stock-out Increased down time, Affects production & Sales targets Creates unstable jobs for Nigerians. Affects competitiveness, Upsets business projections, Dwindled bottom lines, and Increased cost of local production and Increased cost of doing business in Nigeria.

SINGLE WINDOW …A welcome idea

“Is a cross border, “intelligent‟, facility that allows parties involved in trade and transport to lodge

standardized information, mainly electronic, with a single entry point to fulfill all import,

export and transit related regulatory requirements”

World Customs Organization

Objective: enhance efficient exchange of information between trade & government

NEEDS & PRIORITIES (sequentially) Fast Cargo Clearance Time through efficient

deployment of resources. Improved process efficiency through - Minimal bureaucracy and - Minimal Human interface Drastic reduction in transaction cost and delays - Demurrages - Terminal/other port charges, - Customs server down-time and - Lack of scanners.

Eliminate conflict between the assessment agencies and Customs Service (NCS) on tariff.

Transparent & Predictable Process - Application procedure & - Explanation rules Simplified and Reduced documentationPrompt payment of refunds when duty is

overpaid

RECOMMENDATIONS Government should adopt and implement the

proposed Single Window System in Nigeria The implementation road map should take into

cognizance the peculiarity of the Nigerian environment and structure of the economy.

Government should immediately appoint the lead agency for the implementation of the Single Window Road map.

Necessary back-up/safety net be put in place to prevent system collapse during the implementation process

Prior to full implementation of SW Reduction in demurrage cost through increased

free storage time from 3 to 10days, in view of the state of port infrastructure, transport and road network.

Establishment of a functional regulatory body to regulate the activities of shipping agencies and terminal operators.

Formulation of a policy guideline that prevents payment of demurrages for days lost due to strikes and public holidays.

Creation of a transparent work-flow to ensure that manufacturers/port users are not made to pay for inefficiencies of the system

Urgent & Important for Government to create

Thank you