The Executive Secretary of the Shippers Council of Nigeria, Mr. Pius Akutah, revealed on Monday that Nigeria has lost approximately $2.5 billion over the past five years due to the non-implementation of the International Cargo Tracking Notes (ICTN), translating to about $500 million annually.
This disclosure was made during an investigative hearing by the House of Representatives committees on shipping, customs, port and harbor, and maritime safety, education, and administration. The hearing focused on identifying the obstacles faced by the Nigerian Shippers Council in fulfilling its roles effectively.
Key Highlights from the Meeting
- Financial Losses: Akutah emphasized that Nigeria’s failure to implement the ICTN has led to substantial financial losses. He stated, “In the last five years, Nigeria has not implemented this. Because of some investigations, a period of five years passed… we are losing that amount in dollars.” He noted that while there was a brief implementation period of two years during which revenue was generated, the cessation of this process has resulted in significant economic loss.
- Contractual Issues: The Minister of Marine and Blue Economy, Gboyega Oyetola, represented by the Director of Maritime Services, Mr. Babatunde Sule, criticized the approval process for contracts associated with the ICTN, describing it as flawed. He explained that although the Federal Executive Council approved contracts for five companies, one company failed to sign the agreement, which stalled the implementation.
- Government Efforts: Oyetola mentioned that efforts have been made to resuscitate the contract since the new administration took office, including several stakeholders’ meetings. However, he urged the committee to allow time for the minister’s initiatives to materialize.
- Concerns from the Shipping Industry: Boma Alabi, Chairman of the Shipping Lines Association of Nigeria (SAN), expressed concerns that the proposed ICTN could act as an additional burden on the already strained shipping industry. He stated that the existing systems for tracking shipments through shipping lines, customs, and other agencies are adequate and warned that adding the ICTN without streamlining existing processes could lead to delays and congestion.
Conclusion
Rep. Abdussamad Dasuki, Chairman of the Committee on Shipping Services, highlighted the importance of the ICTN as a critical tool for enhancing transparency and efficiency in cargo movement. He acknowledged the challenges in implementing the ICTN, such as bureaucratic delays and conflicting interests among agencies. The committee aims to address these issues to unlock the potential of the ICTN and align Nigeria’s maritime industry with global standards, emphasizing that collective efforts are essential for successful implementation.
