Nigeria may lose N500 billion yearly to new cargo policy

The Federal Government’s new policy on cargo palletisation could rob the economy of over N500 billion yearly and send importers to the ports of neighbouring countries.

Palletisation is a method of storing and transporting goods stacked on a pallet and shipped as a unit load. It permits standardised ways of handling loads with equipment like forklift trucks.

The Minister of Finance, Kemi Adeosun, had said the new import-export policy, which began on January 1, would aid manual examination of consignment, “while the country awaits the acquisition and installation of functional scanners at the seaports and land borders. ”Importers and other stakeholders, however, expressed dissatisfaction with the move, saying it would result in higher costs.

Additional cost incurred on imported goods is expected to deplete the nation’s foreign reserve, given the fact that Nigeria’s import is still higher than its export. Importers and some manufacturers would also be compelled to spread the excess cost on the prices of commodities in the domestic market.

The Guardian, February 2, 2018

 

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