1/ @afalli: THREAD 2: I haven’t been to Illela in about 4 years. I’ll visit when I get news of the opening of the built-up market site which was planned decades ago!
2/ For more information on border markets and rich data on cross-border dynamics, please see the @SWAC_OECD report read.oecd-ilibrary.org/development/cr…
3/ The other fundamental reason why Nigeria’s border closure decision is wrongheaded is related to port competitiveness. There is fierce competition between West Africa 7 main maritime gateways to serve the regional market and to specifically handle Nigerian trade.
4/ Expansion of port concessions have deepened the involvement of the private sector in port terminals across West Africa (the duopoly of Bolloré and Maersk-Sealand dominate the West Africa coast - Tema, Pointe Noire, Abidjan, Conakry and Lagos).
5/ This type of private sector involvement has led to investments in new equipment and technology for handling, scanning and inspecting containers in Nigeria and the other maritime gateways but technical and capacity problems in Nigeria’s ports persist –
6/ and the competitiveness of alternative regional gateways – particularly Cotonou and Lome – are one of the principal drivers why businesspeople prefer other West African ports even if they are importing to Nigeria.
7/ Investments have contributed to compressing turnaround times and boosting cargo-handling capacity in Lagos, but Apapa port complex is still gets heavily congested and even just a few weeks ago, APM Terminals which manages Apapa, said as much.
8/ The truth is Nigeria’s ports are simply not competitive and reducing port operation costs and improving efficiency is the only way Nigeria will compete as a regional gateway to its landlocked neighbours.
9/ Again, shutting land borders isn’t productive in the long term. It is rather ridiculous to suggest that Sorghum farmers in Bauchi, wishing to export their upcoming harvest to Burkina Faso, may have to truck it down to Lagos first!
10/ Efficiency gains in Lagos are there but they haven’t been transformational and are severely constrained by the challenges of getting imports through the poor, labyrinthine and legendarily overburdened Lagos road network.
11/ Inadequate truck parks adjacent to the ports is a further problem – the Lilypond Container Terminal which was converted to a truck holding bay by NPA has apparently been abandoned by truckers according to recent reporting. newtelegraphng.com/2019/11/gridlo…
12/ In short, GRIDLOCK. So much so that there’s a Presidential Task Force on Clearance of Apapa Gridlock. Did I mention that the Apapa port complex which handles 80 percent of Nigeria’s cargo is 14m in depth while vessels these days require a depth of 17m?
13/ Also, seaports for Lekki and Badagry are yet to be approved by NPA. I hear you ask about Port Harcourt, Onne, Delta and Calabar…sorry, #nottoday.
14/ Also, onward transit from Lagos to inland destinations – Kano and co, plus container transport to manufacturing hubs in southeast Nigeria (Aba and Onitsha) …again, #nottoday either.
15/ Benin’s principal port in Cotonou is vastly better equipped and easy to access by road. Handling times have been consistently cut since 2004, which have cut import and export handling times and as a result increased import volume.
16/ Low direct costs are another reason for Cotonou’s attractiveness. Port charges and cargo handling rates are lower there than those in Lagos or other regional competitors.Cargo clearance times are shorter, with some containers passing through in 48 hrs or a few days
17/ Cotonou also does not levy any charge on importers or agents for the first eight days that a container spends on the quayside. Plus, mains electricity supply is more reliable than in Lagos. ...
18/ Charges for supplying plug-in power to refrigerated containers are typically half of Lagos’s.
19/ All of this is crucial because container shipping lines seek to minimize the time and cost ships spend in port. Like that old song says, Time Na Money.
20/ Finally, Nigerian-bound cargo are also drawn to Cotonou because Nigeria’s import tariffs have generally been higher than the UEMOA common tariffs levied by Benin. And oc, freight that then cross the border into Nigeria informally avoids any further tariff charge.
21/ So PS, the that trucks of goods shipped before the border closure that haven’t been smuggled in are doing press-up at the border. This import arrangement might seem annoying, but it is simple economics. I'm sociologist so I only understand VERY simple economics!
22/ As the largest economy in Africa, accounting for well over half of the GDP of ECOWAS, Nigeria shouldn’t be afraid to compete with Benin on port efficiency. Nigeria’s Trading across Borders rank is 179 while Benin is 110…69 whole points difference right next door…
23/ But like they say, don’t get mad, get even. doingbusiness.org/content/dam/do… doingbusiness.org/content/dam/do…
24/ If you want to luxuriate in this topic on Nigeria’s ports then please read this September 2018 report by the LCCI which includes in the first paragraph of its executive summary sturves like “Nigerian ports are currently classified among the worst ports in the...
25/ ...world due to challenges bordering on delay of import/export processes, heavy human and vehicular congestion around the ports, difficulty in gaining access to the ports due to bad roads, security concerns and incidence of corruption and infractions among the...
26/ ...players – government officials and port users.” More interesting sturves here: more interesting sturves found here: tralac.org/documents/news…
27/ What was that? You asking about dry ports/inland container ports….lets just file that under “underdeveloped, lacking adequate infrastructure and logistical support for handling cargo”.
28/ Yes, including the Kaduna dry port that was commissioned last January but please let’s prioritise closing borders!
29/ In conclusion, Nigeria’s borders are booming or at least until the border closure, were booming. This phenomenon is a powerful testament to the resilience of Nigeria’s economy and the importance of its connectedness with others in West Africa.
30/ But let’s be clear, the nature of unofficial cross-border activity, in both importing and exporting, are the result of economic drivers, practical realities and Nigeria’s increasingly disruptive trade policy regime.
