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Customs ICT Inefficiency Blamed for Rising Cargo Costs


The Managing Director of Mainstream Cargo, Seyi Adewale, has attributed the rising cost of imported goods in Nigeria to persistent inefficiencies in the customs clearing process and inadequate information and communications technology infrastructure within the nation’s cargo ecosystem.

Adewale said importers and freight forwarders are increasingly forced to absorb the financial consequences of delays caused by government agencies, terminal operators and recurring downtime on customs processing platforms.

Speaking with journalists at the Murtala Muhammed Airport, Lagos, the freight forwarding expert lamented that disruptions in customs clearing systems have become a major obstacle to efficient cargo movement, adding that the resulting delays are ultimately passed on to consumers through higher prices of goods.

According to him, while infrastructure challenges on the airside have improved considerably over the years, weak ICT systems remain a critical bottleneck in cargo clearance operations.

He claimed that importers operate within strict timelines, and any interruption in cargo processing immediately translates into additional costs.

He said, “On the air side, the infrastructural challenges largely have been mitigated, but let me start with one major ICT infrastructure that can affect the cargo clearing process and increase the costs. The inefficiency at any particular point in time, or the downtime expressed, either on B’Odogwu or the customs clearing platform, has a direct correlation on the final cost of an item. That is the major aspect.

“We have just seven days to clear any goods for any client, demurrage-free days, and if for any reason there is downtime or there are issues regarding customs ICT infrastructure in clearing, it directly affects the shipment.

“If customs systems are down, the importer eventually pays for that inefficiency. The cost does not disappear; it is transferred to the cargo owner and, in many cases, ultimately to the consumer.”

Adewale noted that the situation often places clearing agents under immense pressure as they struggle to meet deadlines despite circumstances beyond their control.

“The delays create tension because importers expect their agents to deliver within a fixed timeframe, but many of the challenges are outside the control of the freight forwarder,” he said.

The cargo operator also criticised the shrinking demurrage-free periods granted by shipping companies, describing the trend as unfair to importers already grappling with bureaucratic delays.

According to him, what used to be a two- to three-week grace period has now been reduced significantly, making demurrage charges almost unavoidable.

He added, “Before now, shipping companies gave between 14 and 21 days of free demurrage, but now some importers have only four days. The counting even starts immediately the vessel arrives, not when the cargo is discharged. So, you are almost guaranteed to pay demurrage.”

He argued that importers should not be punished financially for delays arising from customs procedures, cargo examination processes or terminal inefficiencies, saying, “Cargo positioning, examination and customs processing are processes that importers do not directly control, yet they bear all the consequences when delays occur. That is not sustainable for business.

“It is not enough to have cold rooms. Cargo handling companies must ensure proper temperature monitoring and maintenance throughout the handling process.

“Preserving the integrity of temperature-sensitive cargo requires continuous investment in technology and infrastructure.”

Adewale further expressed concern over what he described as poor ICT integration among cargo handlers, airlines, Customs and regulatory agencies such as the National Agency for Food and Drug Administration and Control and the Standards Organisation of Nigeria.

He maintained that efficient cargo operations can only be achieved through seamless communication and real-time information sharing among all stakeholders.

“There must be proper communication between cargo handling companies, airlines, customs and other regulatory agencies. The entire process should be interconnected because cargo clearance is a chain and every weak link affects efficiency,” he said.

He urged the Federal Airports Authority of Nigeria to invest more aggressively in innovation, terminal expansion and advanced screening technologies to improve cargo throughput.

“FAAN must continue to upgrade screening machines and embrace innovative cargo terminal planning. As cargo volumes increase, facilities must expand accordingly to prevent congestion and delays,” he said.

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