Foreign cargos airline leaves unoccupied over deceptions, multiple charges
Foreign cargo airlines and local exporters are fast vacating the multi-billion dollar worth Nigeria agro-export, over suppressing official bottlenecks at airports.
Besides the hurdles of importing into the country, more complicated roadblocks have been mounted by government agencies in the form of extortions, harassment and multiple charges on export goods, causing international cargo airlines to prefer flying out of Nigeria empty.
Though export was supposed to be free, investigations by The Guardian showed that the anomaly began at the beginning of the year, with multiple government agencies now on revenue overdrive – both for “government purses and private wallets.”
Among the 16 sundry charges tracked for goods coming in or departing the country via airports, only five are officially recognised.
Cargo agencies said the implication is the current trade imbalance of import-to-export that stands at a ratio of 87:13 and at least $250 billion loss on agro-export produce to the country.
The stakeholders said the Federal Government and relevant agencies had for too long, mouthed the ease of doing business without any impact on the cargo section of air travel. The current administration, like its predecessor, did embark on economic diversification in favour of non-oil export promotion. Though the export potential is not in doubt, the official zeal to support exporters and implement government policy was yet to be seen at cargo airports.
At Lagos airport, for instance, at least 16 sundry charges are lined up against every inquiry to export beans, fruits, pap, garri (cassava flour), and cashew nuts to Europe or America. At Abuja, it was 15.
Official charges among the lots are five per cent Cargo Service Charge (CSC) that is statutorily collected by the Nigerian Civil Aviation Authority (NCAA); Federal Airport Authority of Nigeria’s (FAAN) charge of N5 to N23/kg; Customs charges of N60 – N97/kg; ground handling charges of N45 to N90/kg (depending on produce or product) and freight charges accruable to the airlines.
Unofficial and non-receipted charges are: plant quarantine service fees for sanitary certification, put at N15,000 on average; association dues and FOU charges on the packaging, varying from N15,000 for car/van, N25,000 for bus/truck and N45,000 to N50,000 for a trailer full of cargo.
The following agencies also collect unofficial charges en bloc: Anti Bomb Squad of the Nigeria Police Force, National Agency for Food, Drug Administration and Control (NAFDAC), Standard Organisation of Nigeria (SON), and National Drug Law Enforcement Agency (NDLEA).
Another illegal line charge is ‘repair and return’, as against plant quarantine. The Guardian learnt that all these sundry charges, in addition to the foreign airline documentation charge of N12,500/kg, comparatively the most expensive on the continent, explains why foreign cargo airlines often depart Nigeria empty and fly to neighbouring countries to pick export cargo.
A cargo agent, Akeem Aladeselu, said the charges had since gradually returned since freight services spiked after the pandemic lockdown last year.
“For us that deal in fruit production, the multiple charges readily amount to an average of N140/kg clearing charges. About a month ago, an additional N20/kg was levied at the point of export. It has no receipt.
“Our European partners just pulled out of the deal because it makes no sense spending N1,160/kg processing fee to export bananas and mangoes to Europe. That was about N25 million worth of contract cancelled because exporting out of Nigeria, unlike in other parts of African countries, has become too expensive for vendors,” Aladeselu said.
Cargo exporter and Chief Executive Officer of ABX World, Capt. John Okakpu added that the logistics cost of exporting pineapple is already £1.75/kg (about N1,400).
