The Lagos Chamber of Commerce and Industry (LCCI), has expressed concern over the deplorable state of access roads to all the ports in Nigeria, knowing fully well how important the Lagos ports roads are to the Nigerian economy, hence the need for an urgent response by the government to fix the access roads.
The LCCI stated this in a communiqué issued at the end of its council meeting in Lagos recently.
Lagos ports account for about 70 per cent of the total revenue generation from import duties in the country. “The pace of cargo evacuation is being affected by the state of the roads and results in high demurrage charges, high rental costs by the terminal operators and high cost of freight,” the LCCI added.
The council commended various policy measures put in place to improve the business environment noting and as well applauded the Executive Orders and the acts on the movable collateral and credit registry. It noted that the initiatives would create the right environment for business and boost investors’ confidence.
The meeting noted the frequent disregard of the Pre-Arrival Assessment Report (PAAR) issued by the Customs Headquarter often arbitrary valuation are imposed on importers leading to much higher import payment.
Therefore, Council suggested that the PAAR issued by the Customs headquarters should be respected by Customs officers at the ports as far as evaluation was concerned.
The use of discretionary valuation by Customs officers at the port is not consistent with the vision of this administration to improve the ease of doing business. “Council expressed concern over the presence of officers of the Nigeria Customs Service on the highways stopping containers and raising fresh valuation issues, demanding customs papers from vehicle owners on the highway which has resulted to numerous harassment and so on.
According to LCCI, This is not in line with the best practices and has also caused profound frustration to many business owners and citizens on the highway and there is need to put an end to it.
While applauding the National Assembly on the efforts at providing enabling legislation to boost the inflows of private sector capital to complement the capital budget spending of the government especially on infrastructure. The Council noted the recent Business Environment forum between the National Assembly and the private sector on legislations that would boost private investment in the economy.
The council also expressed concern over the increasing liquidity challenges in the financial system. “Some companies are not able to draw from facilities to fund their forex requirements. This is taking a toll on the business of these companies as some of them cannot provide the cash backing for forex demands.
“The liquidity problem is a consequence of the mopping of liquidity in the financial system, the tight monetary policy stance and the increasing crowding-out effect of the private sector by government borrowing in the financial system. Council stressed the need for financial system liquidity to be relaxed.
