Cost of goods to rise as bank network issues delay container pick-ups at ports

Persistent network issues caused by electronic banking portal upgrades at some commercial banks are currently disrupting cargo clearance at Apapa and Tin-Can Ports.

The disruptions have trapped many import containers because essential customs duties cannot be paid, delaying the entire cargo clearance process.

The National President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Mr. Frank Ogunojemite, noted that the process of clearing cargoes involves financial transactions through banks to pay customs duties.

He stated that when banks experience service outages due to network migrations, importers cannot proceed with payments, causing containers to remain in the port.

According to him, the delay leads to costly storage and demurrage fees, which importers often pass on to consumers, contributing to high prices of goods in the market.

“The clearance of cargoes at the ports usually goes through Form M and the Pre Arrival Assessment Report (PAAR).

“For you to begin the clearance process, the transaction has to go through a commercial bank because you have to pay your Customs duty.

“If the banking system or network is down, then there is no way you can pay for Customs duty, and if that is the case, then the container will remain in the port accumulating rent which comes with storage and demurrage payments.

“If this kind of situation persists, then there is no way prices of goods can come down because cargoes are spending longer time in the ports due to disruptions to banking services.

“Government should introduce what is called a ‘compensatory law’ where importers are given waivers when delays to their cargoes inside the ports is not from them.

“Most times, the banks will tell us that they apologise for the network disruptions, but the question is: does this apology make any meaning to the cargo clearance chain?

“There should be a compensatory law where cargo owners are given waivers due to issues beyond them that delay cargoes inside the ports.

“There was a time when Unity Bank was down for weeks and then it became the turn of Guaranty Trust Bank (GTB) and Zenith Bank. Most of the banks are migrating their system to higher versions, and this is affecting cargo clearance.

“Amid all these delays, the cargoes are accumulating storage and demurrage charges which the cargo owners are being forced to pay. How does the government expect the cost of goods to come down when the same goods have already accumulated charges right inside the ports?

“Naturally, the cargo owners transfer the accumulated charges on the cost of the goods, and that is why the cost of goods in our markets keeps skyrocketing,” Ogunojemite told Nigerian Tribune.

He added that haulage operators are also affected, as they face delays in receiving payments from clearing agents.

He said funds often take days to reflect in accounts, causing truckers to hold off on picking up containers, adding that the delay has resulted in lost clients and additional costs.