Joy Agwunobi
The Nigerian Shippers Council has reported that the country’s economy has incurred a huge loss of about $2.5 billion over the past five years, roughly $500 million annually, due to delays in the implementation of the International Cargo Tracking Notes (ICTN) system.
This revelation was brought forward by Pius Akutah, the Council’s Executive Secretary, during a recent investigative hearing organised by the House of Representatives’ Committees on Shipping, Customs, Ports, Harbor, Maritime Safety, and Education. The hearing sought to address the reasons behind the ICTN’s stalled implementation and examine the associated challenges confronting the Council.
Akutah elaborated on the financial repercussions of the system’s interruption, which was initially activated but suspended after only two years of operation. “Nigeria has experienced a significant loss of nearly $2.5 billion due to the stalled ICTN implementation. Various probes, including those conducted by the Economic and Financial Crimes Commission (EFCC), played a role in this delay,” Akutah noted.
He further emphasised that if the ICTN had continued, it could have contributed between $1 billion and $5 billion to Nigeria’s economy over five years, underscoring the system’s capacity to generate substantial revenue.
On his part, Gboyega Oyetola, minister of marine and blue economy, represented by Babatunde Sule, the director of maritime services,highlighted procedural missteps in awarding the ICTN contract.
Despite the Federal Executive Council’s endorsement of the contract during the previous administration, Oyetola stated that the process was flawed, stating, “In the last administration, five companies were granted approval, though one refrained from signing, leading to a stalled process. While there were efforts to restart the contract, including stakeholder meetings and discussions with the lead partner, a conclusive resolution has yet to be achieved.”
However, Boma Alabi, Chairman of the Shipping Lines Association of Nigeria, expressed strong reservations against the proposed Cargo Tracking Bill, which aims to introduce additional regulations on the ICTN.
Alabi argued that the bill would further complicate operations within an industry already strained by bureaucratic hurdles. “The shipping industry in Nigeria is already tangled in excessive red tape. This proposed bill adds another layer of bureaucracy, impacting efficiency rather than enhancing it,” she noted.
Alabi further explained that exporters and importers already have the ability to monitor shipments via shipping line websites, which interface with the Customs portal and the Central Bank’s single-window system
“Shipping lines are also required to upload their manifests to the Customs NICIS portal, which connects to the Central Bank of Nigeria’s single window system. This information is also shared with the Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA), National Drug Law Enforcement Agency (NDLEA), and the Department of State Services (DSS).”
“Adding the ICTN without streamlining the existing process will only result in further delays and congestion,” she said.
Abdussamad Dasuki, Chairman of the House Committee on Shipping Services and Related Matters, defended the ICTN as more than just an administrative formality, labelling it an essential instrument for bolstering transparency, security, and efficiency in cross-border cargo movement.
Dasuki identified critical barriers hampering progress, including bureaucratic delays, inter-agency conflicts, and duplications of awarded contracts. “This forum is an opportunity to directly address these obstacles. Our aim is to untangle the interests at play, streamline operations to reduce smuggling and illegal cargo, and leverage the ICTN to align Nigeria’s maritime sector with international standards,” Dasuki emphasised.
