Lagos port  vessel

Lagos port still a bottleneck for Africa’s top economy

The road leading to the Lagos port, which handles nearly everything that Africa’s biggest

economy imports, is one of the most congested in a megacity
whose traffic jams are legendary.
Wide enough to accommodate only two lanes on either side,
along it move the goods that Africa’s top crude producer uses
its huge oil receipts to buy — everything from designer wear to
dried fish, champagne and shampoo.
The Apapa port is also one of the biggest bottlenecks in an
economy throttled by power cuts and institutional dysfunction.
Reforms to this behemoth by President Goodluck Jonathan and
previous administrations of his People’s Democratic Party (PDP)
brought huge improvements over the past decade, shippers say,
but bad roads and extortion by officials in a tangle of
government agencies continue to pile up traffic and costs.
“Apapa port is hell on earth,” wrote commentator Tokunbo
Oloke in The Tribune late last year. “A place where people
groan, curse, sweat, get infuriated, experience unending pain
and sorrow.”
That is a problem for foreign firms looking to cash in on
the incipient consumer boom in Africa’s most populous nation,
and Jonathan’s successor as president, former military ruler
Muhammadu Buhari, will need to crack down hard if he wants to
keep a reputation as a man with zero tolerance for graft.
A Reuters trip to Apapa, a virtual city of piled up
containers by a lagoon, took four hours past lines of fuel
trucks. That was despite volumes being relatively low owing to a
weaker naira and oil prices. Workers report much longer waits.

Companies have to bring perishable goods through the port,
where bureaucratic delays can mean a shipment spoiling.
Privatising the port operators in 2006 eased congestion
dramatically, and Finance Minister Ngozi Okonjo-Iweala in 2012
cut the number of government agencies allowed to inspect cargo.
“There were about 15 different agencies extorting money from
importers, and each would do a separate inspection,” former
presidential adviser Sylvester Monye told Reuters.
“Now we have seven, and the president introduced a regime
that all the inspections must happen simultanouesly.”
Importers however, say that rule is not always followed, and
those seven can still hold back shipments while they await
bribes. A Reuters reporter saw a man in uniform hold up a truck
for half an hour before the driver reluctantly handed over cash.
“They’ve all got a scam going, from the guy that wheels your
trolley out to the senior customs officers,” says an official at
container company at Apapa who declined to be named.
He added that Nigerian authorities inspect 70 percent of
cargo, compared with around 5 percent in the European Union.
“The reason is: that is the number that you find to be
unclean,” said Monye.
A spokesman for the Nigeria Customs Service did not respond
to a request for comment, but the head of customs at Apapa,
Eporwei Edike, was quoted in the local press last week as saying
that “If we notice any irregularities anywhere, we tackle them
immediately,” and that “we are not sparing erring officers.”
Monye said other improvements Jonathan introduced included
making it a 24-hour operation instead of 9 to 5 and rebuilding
the 30-year-old road with a foot of concrete underneath it.
But extortion remains the biggest gripe of importers.
Onyadinka, a durable goods importer from a small self-owned
firm who declined to have his last name printed, told Reuters
that once all the costs of shipping, formal and informal, are
factored in, he needs to sell his second hand cars at four times
the initial buying cost just to turn a profit.
The shipping and waiting charges are also huge because
“Nigeria just exports oil, so many containers go back empty.”
“The whole thing is a shake-down,” he said. “If you don’t
pay, nothing gets done. Even if they find nothing untoward.”
A fuel importer says every agency will ask for bribes.
“If you don’t pay they will say, sorry sir, we’re clearing
your papers still, it may take a while,” he said. “And they mean
it will take an eternity. Your shipment will just rot there.”
Monye said firms with proper paperwork had no problems.
“The problem is two dimentional,” he said “And the other
side is the bribe givers who don’t do their documentation
properly and are used to just paying their way out of trouble.”
“The big companies operating in a straight and narrow way do
not have these problems. Often they don’t get checked at all.”
Yet shipping agent Tolu Mustapha says long delays put
everyone at a huge disadvantage, because it isn’t long before
the accumulated cost exceeds the consignment’s value.
He said a client he worked for bringing in $25,000 worth of
diapers gave up when demurrage took him over that threshold.
“A lot of people just abandon their goods. The port is full
of abandoned consignments,” he said, which authorities auction.
There is a long list of ills that Nigerians are hoping
Buhari’s incoming government will quickly address — growing
insecurity, an Islamist insurgency in the northeast and
corruption in the oil sector.
But for Nigeria’s dynamic and fast growing economy,
finishing the job of port reform must be near the top.

(Editing by Matthew Mpoke Bigg and Giles Elgood)

By Tim Cocks. LAGOS, April 27 (Reuters)