Business
2024: Nigerian Ports Need New Economic Policy Reforms – Shipper
A shipper, Rev. Jonathan Nicole, says the nation’s ports need drastic economic policy reforms in 2024 to be more viable and competitive.
Nicole disclosed this in an interview with the News Agency of Nigeria (NAN) on Thursday in Lagos.
Nicole, a former President, Shippers Association of Lagos State, called for the restructuring of the Ministries, Departments and Agencies (MDAs).
He added that government agencies not needed in the port should return to their various ministries.
Nicole also urged the Minister of Marine and Blue Economy, Mr Adegboyega Oyetola, to work towards achieving this feat.
“The restructuring of the MDAs would bring dramatic progress into the port.
“The management of the Nigerian Ports Authority has also called for the reduction of the MDAs in the port.
“We agree with them. They are the owners of the port and they know those that are relevant in dealing with port issues.
“Shippers associations across the country will offer their support to the introduction of a new Port Order and restructuring of the method of rules of engagement into the sector.
“The informal sector of the economy should be encouraged,” he said.
Nicole described the present situation as pathetic, adding that most importers had lost their properties used in securing bank loans.
He attributed their failure to repay the loans to policy somersaults.
Nicole said the maritime sector was pioneered by traders, importers and exporters as well as manufacturers.
He noted that the 2023 was characterised by outrageous taxes and duties due to targets given to the Nigeria Customs Service.
Nicole added that the fluctuation in foreign exchange rate affected importers and manufacturers grossly in 2023.
“Cost of clearing skyrocketed to a strangulating proportion. Some importers abandoned their goods due to inability to raise additional funds to meet choking demands.
“The 400 per cent increase in terminal charge is another herculean challenge for shippers depending on the volume of cargo involved.
“We are hopeful as the Nigerian Shippers’ Council executive secretary settles down, an equitable price regime will be re-introduced to replace the current system,” he said.
He noted that with the high cost of doing business in the port, importers had no choice than to either continue or relocate to a more sane environment.
“The moment some of these obstacles and pressures are eliminated, the industry would flourish and become highly competitive,” he said.
He listed some of the abnormal pressures as high cost of diesel and fuel, tax regimes, introduction of tax returns, closure of small and medium businesses by the Corporate Affairs Commission and unrealistic tax reforms.
Others, according to him, are reduction in terminal charges and shipping costs, reduction in customs duty tariffs, costs of haulage of goods, and total stoppage of closure of ports due to unnecessary industrial activities, among others.(NAN
Nigeria’s public debt rose by 48.5 per cent year-on-year (YoY) to N144.67 trillion ($94.23 billion) in 2024 from N97.34 trillion ($108.23 billion) in 2023.
The Debt Management Office (DMO) disclosed this in its latest public debt profile report.
The debt stock consists of external debt of N70.29 trillion ($45.78 billion) serviced with $4.66 million and domestic debt of N74.38 trillion ($48.44 billion).
The report showed that the country’s external debt increased by 83.89 per cent YoY from N38.22 trillion ($42.5 billion) in 2023.
Domestic debt also grew by 25.7 per cent YoY from N59.12 trillion ($65.73 billion) in 2023.
The report further indicated that the Federal Government’s domestic debt component rose by 32 per cent YoY to N70.41 trillion from N53.26 trillion in 2023.
But the domestic debt of states and the Federal Capital Territory declined YoY by 32 per cent to N3.97 trillion in 2024 from N5.86 trillion in 2023.
The rise in public debt can be attributed to fluctuating trends in exchange rates amidst changes in global economic conditions.
The sharp increase, particularly in external debt, highlights the nation’s vulnerability to exchange rate volatility and changes in global economic conditions.
With the continued depreciation of the naira, the cost of servicing foreign debt could escalate, adding pressure on the country’s financial resources.
The Nigerian National Petroleum Company Limited (NNPCL) has announced the appointment of a new eight -man Senior Management Team.
The appointment followed the recent announcement followed the appointment of the Group Chief Executive Officer (GCEO) and Board of Directors.
Disclosing this in a statement on Friday, NNPCL Chief Corporate Communications Officer, Olufemi Soneye, said the appointments all take immediate effect.
“Following the appointment of the Group Chief Executive Officer and Board of Directors, the Nigerian National Petroleum Company Limited (NNPC Ltd) has announced the appointment of a new 8-man Senior Management Team on Friday,” he stated.
“The team which will be headed by the GCEO, Mr Bashir Bayo Ojulari, has Rowland Ewubare as Group Chief Operating Officer; Adedapo Segun as Group Chief Financial Officer; and Olalekan Ogunleye as Executive Vice President Gas, Power & New Energy.
“Other members of the team are: Udy Ntia as Executive Vice President Upstream; Mumuni Dangazau as Executive Vice President Downstream; Sophia Mbakwe as Executive Vice President Business Services; and Adesua Dozie, as Company Secretary & Chief Legal Officer. All appointments are with immediate effect.”
Ngozi Okonjo-Iweala, the director-generaI of the World Trade Organisation (WTO), says the recent tariffs announced by the United States (US) will have significant implications for global trade and economic growth prospects.
On April 2, President Donald Trump announced sweeping global tariffs on all imports into the US, imposing 14 percent on Nigeria.
In a statement on Thursday, Okonjo-Iweala said the WTO secretariat is closely monitoring and analysing the measures announced by the nation.
The WTO DG said many members have “reached out to us”, adding that the secretariat is actively engaging with them in response to their questions about the potential effect on their economies and the global trading system.
“The recent announcements will have substantial implications for global trade and economic growth prospects,” the economist said.
“While the situation is rapidly evolving, our initial estimates suggest that these measures, coupled with those introduced since the beginning of the year, could lead to an overall contraction of around 1% in global merchandise trade volumes this year, representing a downward revision of nearly four percentage points from previous projections.”
Okonjo-Iweala expressed concern over the decline and the potential for escalation into a tariff war with a cycle of retaliatory measures that could lead to further declines in trade.
“It is important to remember that, despite these new measures, the vast majority of global trade still flows under the WTO’s Most-Favored-Nation (MFN) terms,” she said.
“Our estimates now indicate that this share currently stands at 74%, down from around 80% at the beginning of the year. WTO members must stand together to safeguard these gains.”
According to the WTO DG, trade measures of this size have the potential to create significant trade diversion effects.
Therefore, she called on members to “manage the resulting pressures responsibly to prevent trade tensions from proliferating”.
“The WTO was established to serve precisely in moments like this — as a platform for dialogue, to prevent trade conflicts from escalating, and to support an open and predictable trading environment,” Okonjo-Iweala said.
She encouraged members to utilise the forum to engage constructively and seek cooperative solutions.