Dry ports operation will cut down cost at sea ports - Biu

Captain BiuThe Executive Secretary of the Nigerian Shippers Council (NSC), Captain Adamu Biu, in a chat with Assistant Editor, DELE ADERIBIGBE, speaks on topical issues like operational performance, dry ports, challenges on the international scene, concluding that the Nigerian Shippers Council is set to reduce inflation by cutting and pruning down sea port tariffs and making dry ports work. Excerpts:
HOW would you access the performance of your
organization, especially in rela-tions to your
set goals and vision for the year? How would you rate the Council’s pace in the first half year.
Well to be candid with you, I would not be able to tell you that I am yet satisfied with the performance of the Nigerian Shippers Council [NSC] in the first six month of the year.
I say this simply because, from the beginning of the year 2008, going by our set objectives, which include achieving one or two key goals.
But you know that Government works largely on budgeting; which we have somehow not matched at desired pace.
Everything we do here is usually based on laid down rules; this is what we want to do, this is how much it would cost us, and this is the time frame. This is in line with our enabling act. For instance, we had to organize the election of the freight forwarders council of Nigeria (FFCN); we did this in conjunction with our colleagues in the industry; we had to inaugurate them.
We had to pursue the take off of the Inland Container Deports [ICDs]; those are the ones that we have on the ground.
Additionally, we have several symposia, seminars and conferences lined up for the year, and all those things have to be financed. Optimally, we cannot operate, except we have the funds. Now, this is July, and as we speak, our allocation for the first quarter of 2008 has not been released to us.
Our allocation from the Federal account, for 2008 has not been released as at today (the 11 of July 2008).
So, we have little or almost nothing to do except to strive as much as possible to work within the limited resources at our disposal. And that is the greatest handicap we have, in terms of our operation and desire to give the Nigerian people qualitative service.
We are only able to pay salaries; nothing else. It is only from all that we have received in the previous year that we have managed prudently. And that has lasted us up till now.
But, we are optimistic that Government would address this issue as soon as possible. And of course, when that is in place, by the special grace of God, NSC would operate at new pace.
The council is establishing new grounds to give special services to stakeholders and these include the exporters and importers whose well being is vital to the National economy.
You organized an international seminar recently in Abuja; you are paying salaries; and you have not collected any allocation, seven months in to the year! What is the secret?
Let me be honest with you, what we have tried to do is made target funding for certain tasks. We were aware from last year that this international seminar would hold. So, we secured budget for it.
It is annual. Annually, we have Maritime seminar for Judges. And this is the 10th one, we had invited different Judges from the sub region, including the Chief Justice of Ghana and other neighboring countries. There was no way we were going to shelve it. More so, as we were also working with the National Judicial Institute. But, in terms of financing, the Shippers Council financed it 100 percent!
We knew this would come up. So, we also ensure provision for it, from what ever we earned in 2007. If we were to rely on this year’s allocation, we wouldn’t have been able to fund it.
Your services are very vital to the industry and we are happy that government recognizes this.
So, may we ask, why do you think the Council is not being properly funded?
I think why we are not being funded on time is because the government has not put in place the machinery to directly fund the NSC. This may be as a result of the manner in which funding is presently arranged.
We have an act of parliament which says the NCS should be funded from freight earnings. It says it should be via a one percent of freights paid on all export or import cargoes. The act further goes to say that the NSC can either self collect or appoint an agency to collect on her behalf. So far however, this has not been actualized.
Over the year, what has happened is that government has not implemented that one percent collection either by the council or by any agency appointed by the council.
Government has created what is known as the Seven percent Import Duty Surcharged. The customs collect this seven percent; and one percent of this seven percent is made available to the NSC for her programmes, seminars etc. That amount is released quarterly.
What this mean is that from January 1st to 31st march of the year, which is a quarter, whatever custom collected, is collated and the ministry of finance, through the office of the Accountant General, works it out and releases it to the NSC- via application.
Via application means that we have to apply for it. We would write to indicate that we are due for this one percent.
So Captain, why did you fail to apply for your first quarter allocation on April 1st, 2008. Or, your second quarter allocation on July 2nd, 2008? Would a vibrant, instead of a sleeping system fail to release the first quarter allocation, even as at the end of the second week of July?
Please don’t talk like that!
Okay sir. So what happened?
We did apply for our first quarter allocation in April, but I think for some reasons, it couldn’t be ready. Of course we could not have applied until after the 31st of March. I think the situation is that between April and now, it was still being worked upon. And day before yesterday, we obtained information that we have received ministerial approval for the first quarter of 2008 to be paid.
I understand your perspective. And it is only very natural that operating on such arrangements would affect our budget implementation to be defective.
At this rate sir, the Council would only be too lucky to obtain the third allocation even by the end of the year, whatever the cost may be to the stakeholders. Has it ever occurred to you sir, that Nigerians may not understand that the inefficiency of a few guys in one ministry can wreck untold havoc on hard working stakeholders in the nation’s maritime sector?
I insist you shouldn’t talk like that.
Ok, go ahead sir.
So, such delays would no doubt affect our budget implementation. But then of course, even if we are lucky to obtain the third allocation by December this year, we would still be going into the next year, in deficit. And that means that when we go to the National Assembly by next year to discuss our budget performance, a huge discrepancy would still be in place; and so, we may have to explain and explain all over again; especially in terms of reason why we were not able to duly implement our approved budgetary allocation in accordance with what we got.
So, as to why we were not timely funded, that is the back ground information, and that is why may not be adequately funded, as at when due. Secondly, even the amount we receive is not stable. You can not predict what we would receive. Sometime it is ‘x’; and sometimes, it is ‘x minus y’; and it is seasonal. When trade is booming, we expect improved allocation; and when it nose-dives, we get ‘x-y’.
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