THE STUDY OF MARITIME FRAUD AND ITS EFFECT ON COMPETITIVENESS OF NIGERIAN PORT

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

Despite the government of Nigeria’s efforts to combat corruption in all sectors, several unwholesome activities continue to take place in the maritime sector, most notably by shipping agencies and terminal operators conspiring to levy fictitious charges on importers and agents in what has been described in the maritime domain as a never-ending economic rape. The product of this organized graft, which frequently amounts to several billions of naira per year, has continued to increase the volume of capital flight that the country suffers each year. Following the implementation of this scheme, used vehicles, clothing, food, and other goods are now cheaper in Cotonou, Lome, and Ghana markets than in Nigeria.

The negative aspect

The anomaly is that importers and clearing agents, in their struggle to stay in business and grow, later pass on the prohibitive charges to consumers, who now pay far more for the goods than necessary.

According to previous findings, terminal operators, shipping lines, and shipping agents have used Nigeria’s largely unregulated maritime industry to raise charges such as demurrage and container deposit, among others, that are higher than in neighboring West African ports. According to a comprehensive analysis of shipping charges conducted in three African countries – Nigeria, Ghana, and Benin Republic – by a maritime industry medium, “Shipping Position,” port charges in Nigeria continue to be the highest in the ECOWAS region. Experts, on the other hand, have attributed the high charges to

the unwholesome practices among shipping companies operating at Nigerian ports. Again, while it takes a few days in other ports to receive the container deposit refund after the empty container is returned, it could take up to three months in Nigeria because terminal operators allegedly delay receiving it in order to accrue demurrage, which could eat up the deposit. MOWCA levy and stamp duty are two other charges that are not collected in other countries but are available in Nigeria.

Importers are also perplexed that, in contrast to other West African ports, Nigeria only offers three days free of progressive storage charges, whereas Benin, Ghana, and Cote D’Ivoire offer seven days free of progressive storage charges. According to maritime experts, the

The nation’s sea hub status was under threat as Cotonou, Lome, and Accra ports snatched cargoes from Nigeria. It is feared that the country’s frequent partial cargo drought is due to this development, as some shipping companies prefer to call at other West African ports where they enjoy significant incentives, particularly reduced charges. The increased frequency of smuggling is due to the fact that some importers may not make a profit after paying all charges at the ports.

Other stakeholders in the import chain, such as the Nigeria Customs Service (NCS), Nigeria Immigration Service, Quarantine Service, Port Health, and the Nigerian Maritime Administration and Safety Agency (NIMASA), also contribute to the delay.

Clearing duties and corruption at the nation’s ports are being investigated. All of this has made doing business difficult and has harmed Nigeria’s maritime sector’s competitiveness.

Apapa in Lagos State, Nigeria, is home to a number of ports and terminals run by the Nigerian Ports Authority (NPA), including the state’s main port and the Lagos Port Complex. Apapa is located near the mouth of the Lagos lagoon and includes ports and terminals for various commodities such as containers and bulk cargo, as well as houses, offices, and a small old disused railway station. It is the location of a major container terminal that was owned and operated by the Federal Government of Nigeria until March 2005, when it was sold to the Danish firm A. P.

Groupe Moller-Maersk

1.2 THE PROBLEM’S STATEMENT

Ports are critical to the Nigerian economy and development because they handle nearly 75% of trade between Nigeria and the rest of the world. Thus, the importance of ensuring port efficiency is linked to the country’s ability to compete on a global scale. Unfortunately, corruption and extortion by shipping companies, terminal operators, and government officials have continued to frustrate importers, causing commodity prices to rise, encouraging smuggling, and undermining Nigerian ports’ competitiveness, as many importers prefer to use ports in neighboring West African countries. However, the researcher is investigating the extent of fraud in the maritime sector to determine its impact.

on competiveness of Nigerian port.

1.3 THE STUDY’S OBJECTIVES

The following are the study’s objectives:

To investigate the extent of maritime fraud in Nigerian ports.

To investigate the impact of maritime fraud on Nigerian port competitiveness.

To determine how maritime fraud can be combated.

1.4 QUESTIONS FOR RESEARCH

How prevalent is maritime fraud in Nigerian ports?

What impact does maritime fraud have on the competitiveness of Nigerian ports?

How can maritime fraud be prevented?

HYPOTHESIS 1.5

HO: There is no significant relationship between maritime fraud and Nigerian port competitiveness.

HA: There is a strong link between maritime fraud and the competitiveness of Nigerian ports.

1.6 THE STUDY’S SIGNIFICANCE

The following are the implications:

of this research:

The findings of this study will inform the Nigerian government and the general public about the wave of corruption in the maritime sector and how it affects the competitiveness of Nigerian ports. It will also educate on methods for combating the threat of corruption in the maritime sector.

This study will contribute to the body of literature on the effect of personality traits on student academic performance, forming the empirical literature for future research in the field.

1.7 STUDY SCOPE AND LIMITATIONS

This research will look at the level of fraud in the Nigerian maritime sector and how it affects the competitiveness of Nigerian ports.

STUDY LIMITATIONS

Financial constraint- Inadequate funding tends to impede the researcher’s efficiency in locating relevant materials, literature, or information, as well as in the data collection process.

Time constraint- The researcher will conduct this study alongside other academic work. As a result, the amount of time spent on research will be reduced.

REFERENCES

G Tancott (2015) published “16 new RTG cranes for APM” in Transport World Africa. Retrieved September 12, 2015.

THISDAY LIVE, 35 Creek Road, Apapa, Lagos, Nigeria, on January 18th, 2015.

 

 

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