LOGISTICS COMPANY

LOGISTICS COMPANY: EASE OF DOING BUSINESS IN NIGERIA

Logistics Company could be defined as any company that applies logic in solving problems associated with movement. Such transportation could be of raw materials, finished or semi-finished goods, people, inventory and even services. Hence, international logistics involves such movement across country boarders.

LOGISTICS COMPANY: PORTS

This movement across boarders places ports (seaports and airports) at the heart of international logistics trade. In fact, it is said that ‘ports around the world, 80% of global trade by volume and over 70% of global trade by value are carried by sea and are handled by ports worldwide.’ My reason for writing this article is to inform that ports operations and practices are changing for better in Nigeria. So, whatever experiences you or your logistics company had in the past, the executive order by the federal government of Nigeria on ease of doing business is enabling things for the better.

Read Also: TRADE FINANCE: PARALLEL MARKET, IMPORTS

LOGISTICS COMPANY AND THE NIGERIA TRADING SPACE

Nigeria is an import driven economy? Items imported range from visible goods like refined petroleum products, machinery and equipment, cars, electronics, clothing, household items, foods, and invisible goods like the internet and technological know-how. Every logistics company understands what this really means business-wise. A logistics company operating some place in the world would really want to consider annex to Nigeria. However, as all existing logistics services provider in Nigeria knows, there some practices that hinder the ease of doing business in Nigeria. Thanks to the executive order by the then acting President of Nigeria – Professor Yemi Osinbajo.

LOGISTICS COMPANY AND THE EXECUTIVE ORDER

On the 18 May 2018, the then acting President of the Federal Republic of Nigeria professor Yemi Osinbajo signed an executive order that could best described as order on transparency and ease of doing business in Nigeria. This order tagged Executive Order 1 (EO1), has 5 main components, namely:

  • Transparency
  • Default Approval
  • One Government
  • Entry Experience of Travellers and Visitors
  • Ports Operations

As the Chief Executive Officer of a logistics company, and from personal experience, let me quickly jump to plank number 5 of the executive order EO1. I will now dwell on what this facet of the order mean to the logistics services company. In other articles, I will talk about other facets or the executive order EO1 and how they benefit the supply chain as well.

SUPPLY CHAIN: PORTS OPERATIONS IN NIGERIA AND THE EXECUTIVE ORDER EO1

The executive order EO1 – Ports Operation has sub-planks or sub-components and directs as follows:

PLANK 1

  • “All agencies present at the ports shall harmonise their operations into one single interface station in one location in the port and implement by a single joint task force at all times” before we go to the next sub-plank, let me take time to discuss what this means to me and every other logistics company, and indeed everyone in the Nigerian supply chain. Let us take Customs Clearance at port for instance; every Customs broker understands what relief this order is. Before now, signing of examination Form by Government Agencies in the Ports was difficult. Such agencies include Police, SSS, NDLEA, Anti-Bomb, NAFDAC, SON, and others. Before the implementation of this executive order EO1 in July, 2017, what usually happens was a jumping from place to place by the Custom agents. Chasing after agencies of government. Thanks to the executive order, this is now done at a central point. All concerned agencies in one platform as it were.

PLANK 2

  • “The new single interface solution at the Ports shall supply weekly data on goods arriving and departing Nigeria to the head of MDA and head of the National Bureau of Statistics.” This is very good to all parties in the supply chain. To the government it means transparency, to bloggers like myself it means more information available the Federal Bureau of Statistics. This directive will also put the logistics company at ease, knowing that his activities are actually legal.

PLANK 3

  • “Each Port in Nigeria shall assign an existing export terminal to be dedicated to the exportation of agricultural produce.” This directive encourages local industries, and opens opportunity for manufacturers to come in to the agricultural sector of the economy.

PLANK 4

  • “The Apapa Port shall resume 24-hour operations within 30 days of issuance of this order.” This one is what I call ultimate of all the orders. The reason is because the Apapa receives highest of importation, and the operation is barely able to handle all clearance issues using the conventional work hour. This therefore means more speed and less expense to the logistics company. This order also means more revenue to the Nigerian state.

PLANK 5

  • “No touting allowed at the ports by official or nonofficial persons.” Those of us already benefiting from this order know that this is a relief to us. Begging and bribery could really dull the senses of people. Having outlawed touting in all its forms, the government has helped logistics services providers know what their rights are. Yes, logistics companies know where to draw the line, and thereby reduce expenses.
  • “Any official caught soliciting or receiving bribes from passengers or other Port users shall be subject to immediate removal from post and disciplined.” This is related to the anti-touting order above.

Read Also: CARGO SHIPPING TO NIGERIA

In Summary:

Logistics Company now flourish in Nigerian space, considering the government’s determination in curbing sharp practices in and around the Ports. The presidential order EO1 is really working, and I urge you to tap into the advantage now. Feel free to comment on this post so that other people can benefit.

 

Please follow and like us:
Pin Share

Leave a Reply

Your email address will not be published.