NSC Evaluates Covid19 Impact, Set Benchmarks
The Executive Secretary/CEO, Nigerian Shippers’ Council (NSC), Bar Hassan Bello has candidly called on the federal government to adopt e-commerce especially the digitalisation of the ports in order to reduce human contact.
Bello stated this at the “Sensitization workshop for stakeholders on trade facilitation during the COVID-19 pandemic – challenges, lessons and the way forward held yesterday.
The chief host informed the guests that; “It is common knowledge that the Covid-19
pandemic has brought an unprecedented disruption to international trade and the global economy at large, as world production and consumption were scaled back across the globe. To combat the
global health crisis, the role of international trade cannot be underestimated. During the lockdown, there was the compelling need to move medicine and nutritions across the globe in order to save lives and livelihoods of the populace. It is in recognition of the
essential role of international trade in combating the pandemic that the ships were scheduled to continue to move the ports were kept open and all the port Agencies and port service providers were in place to ensure that cargo were processed and delivered to consignees.
“The United Nations Conference on Trade and Development (UNCTAD) in its efforts to strengthen international trade and
transport during this pandemic released a 10-point action plan. This was contained in its policy brief No. 79 April 2020.
The 10-point action plan includes:
Ensure uninterrupted shipping
Keep the ports open
Project international trade of critical goods and speed up customs clearance and trade facilitation
Facilitate cross-border transport to ensure free flow of goods across borders
Ensure the right of transit
Safeguard transparency and provision of up-to-date information
Go paperless. Electronic submissions and paperless transactions become ever more important in observing the physical/social distancing,
Protect shippers and transport service providers alike; and
Prioritize technical assistance by investing in human, institutional and technology capacities.
“The importance of these resolutions became visibly clear locally in Nigeria at the height of the lockdown occasioned by the COVID-19 pandemic. In the course of its daily monitoring exercise during that
period, the NSC had observed that some shippers, through no fault of theirs are unable to take delivery of their cargo because of a number of reasons that included:
- Ban on public transportation during the lockdown;
- Services rendered by some terminals and shipping companies
were slow and sometimes non functional;
iii. Non-usage of available online platforms by freight forwarders;
- Inadequate banking services, and
- Limited service by service providers due to reduced workforce.
“To address some of the above challenges, the NSC came up with some remedial measures:
- Through NSC interventions, the CBN directed the Commercial Banks to open all branches within the port area to receive duty payments, confirm payments for bank drafts as well as online transfers and provide foreign exchange to shippers, shipping line agents and terminals. Furthermore, Central Bank of Nigeria
(CBN) direct the banks to provide foreign exchange to shipping companies to enable them fulfill their financial obligations to
government agencies.
- Shipping companies and terminals were asked to upgrade their online services to discourage human contact at all times,
especially during the COVID-19.
- Freight forwarders were asked to patronize online platforms of the sipping companies and terminals such as the submission of documents, rotation number etc., and try to minimize as much as possible, physical presence at the terminals, banks and shipping company premises.
- Met with shipping companies and secured 100% demurrage waiver during the period of COVID-19 lockdown from 30th March
to 4th May, 2020;
- Met with truckers and secured a 30% reduction in haulage cost across the board;
- Visited shipping companies and terminals to ensure compliance to safety guidelines on social distancing and personal hygiene as
issued by health authorities;
- The NSC equally constituted a COVID-19 maritime task force to review port operation during the COVID-19 period and come up with remedial measures to fill identified gaps;
- Council posted officers to designated shipping companies and terminals to monitor compliance to established safety guidelines as well as ensure prompt rendering of service to port users;
- Council met with organized private sector to jointly review port operation and proffer solution for improved efficiency;
- Nigerian Ports Authority (NPA) granted free rent waiver during the lockdown.
“It is pertinent to emphasize that the gaps experienced during this Covid-19 pandemic has demonstrated the need for the adoption of E-commerce in the country especially the digitalization of the port in order to reduce human-to-human contact, adopt and paper-based transactions as the norms for international trade interface and port
operations. Government and private sector alike need to embrace the concept of “smart ports” in line with the international best
practice.
“It is in order to keep up the momentum and review the operational activities during the lockdown that the Nigerian Shippers’ Council packaged series of sensitization workshop for stakeholders: relevant
government Agencies and port service operators and users to discuss trade facilitation challenges, lessons learnt during this pandemic and to reflect on ways of actualizing a national action plan to cushion the adverse effects of the pandemic on the Nigerian economy.
Distinguished participants, let me conclude by affirming the commitment of the Council to adopt the resolutions reached at this
meeting and our determination to implement them in order to facilitate trade in line with the UNCTAD 10-point action plan.”