Importers incur huge demurrage over delays in payment of Customs duty at GTBank, says APFFLON

Nigerian importers are incurring huge demurrage and avoidable financial losses due to persistent delays associated with the processing and confirmation of customs duty payments by GTBank.

The Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON) has raised an urgent alarm over this, calling on the Federal Ministry of Finance, Nigeria Customs Service, Nigeria Shippers’ Council, Nigerian Ports Authority and the banking sector to take urgent action to tame the ugly development.

Speaking with PortNews in Lagos, the National President of APFFLON, Otunba Frank Ogunojemite, pointed out this.

According to APFFLON National President, “an importer who has legitimately generated and paid customs duty should not be made to suffer additional financial liabilities because of delays in the banking or payment-confirmation process.

“An importer’s profit should not be consumed by demurrage arising from a payment process that is beyond his control. This is no longer just a banking inconvenience; it is becoming a serious trade-facilitation and port-efficiency issue.

“APFFLON is particularly concerned that while the Federal Government and the Nigeria Customs Service are introducing reforms aimed at reducing cargo clearance time, improving port efficiency and lowering the cost of doing business, delays in payment confirmation can effectively reverse those gains.

“Every additional day a cargo remains uncleared exposes the importer to demurrage, storage charges, terminal expenses, interest on borrowed funds and other accumulating costs. In many cases, the entire expected profit from a transaction can be wiped out before the importer is able to take delivery of the goods.”

He therefore called on the Federal Ministry of Finance to urgently convene the relevant agencies and financial institutions to resolve the problem and establish a reliable mechanism for immediate confirmation of customs payments.

The association further called for:
Real-time confirmation of customs duty payments
An emergency escalation channel for payments that are not immediately reflected
A system that prevents importers from incurring demurrage where evidence of payment exists;
Clear responsibility for delays occurring within the payment and confirmation chain; and
An inter-agency monitoring mechanism to ensure that payment-related delays do not undermine ongoing port reforms.

APFFLON also appealed to terminal operators and shipping companies to exercise restraint and provide appropriate consideration where delays are demonstrably caused by payment-processing or government-system issues beyond the importer’s control.

According to Ogunojemite, “APFFLON strongly believes that trade facilitation must begin from the point of payment and end with the prompt release of cargo. It is contradictory to seek shorter cargo dwell time while legitimate importers continue to lose valuable days waiting for payment confirmations.

“The Federal Government is making genuine efforts to improve the ports and reduce clearance time. We do not want administrative or banking bottlenecks to sabotage those efforts. If this situation is not addressed urgently, demurrage will consume the working capital and profits of Nigerian importers, while the country loses revenue and businesses lose confidence.

“APFFLON therefore urges the Federal Government to treat this matter as an emergency trade-facilitation issue, not merely a banking complaint.

“Government reforms must protect businesses from avoidable losses. An importer who has paid his customs duty should not be punished financially because the system has failed to confirm that payment on time.”

Otunba Frank Ogunojemite noted that APFFLON remains ready to work with the Federal Government, Customs, financial institutions and all port stakeholders to find an immediate and sustainable solution.