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Stakeholders Express Concern Over Influx of Overtime Cargoes

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NIMASA
  • Stakeholders Express Concern Over Influx of Overtime Cargoes

Overtime cargoes have increased with the worsening traffic situation around the Lagos ports access roads and stakeholders are concerned about the trend.

Overtime cargoes are cargoes that have stayed at the port for longer than 28 days without being cleared according to Customs regulations.

The Coordinator, Save Nigeria Freight Forwarders, Chief Osita Chukwu, told our correspondent that many cargoes had fallen into the overtime category because the owners did not have money to clear them.

He said terminals were flooded with overtime cargoes such as Kirikiri Lighter Terminal, the SCOA terminal, Tin Can Island Container terminal, Five Star Logistics, and Ports and Cargo Terminal as well as bonded terminals across the state.

He suggested that the government should auction the cargoes so that the owners could have at least 50 per cent of the proceeds.

Another stakeholder and the Chairman, International Freight Forwarders Association, PTML Chapter, Sunny Nnebe, suggested that the cargoes be auctioned so that the life of the containers could be preserved, saying that containers that had been left idle for a period of up to one year would be subject to damage and constitute loss not only to the owners but the economy.

Overtime cargoes are also taken over by the Nigeria Customs Service after the owner fails to collect them from the shipping terminals.

Meanwhile, the NCS has expressed concern over its inability to move the overtime cargoes in its care to the government warehouse in Ikorodu.

According to the Apapa Area Command of the service, high cost of transportation has prevented the movement of overtime cargoes from the command to the government warehouse in Ikorodu.

The Public Relations Officer of the Command, Nkiru Nwala, was quoted by an online maritime news portal, Ships and Ports, as saying that it cost N550,000 to move a twenty-foot container from Apapa to Jibowu, a suburb of Lagos – a cost which the command could not afford.

Nwala said the Command’s Controller, Abubakar Bashir, was in talks with the Port Manager, Lagos Port Complex Apapa, Aisha Ali-Ibrahim, and terminal operators at the port to support it in moving the overtime cargoes out of the port to avoid port congestion.

She said, “To pick a container from Apapa port to Jibowu is N550,000; so for now, the modalities to get the containers out are being worked out.

“Using barges is not also cheap, some are using train and sometimes you will see that the train breaks down; it is a whole lot of challenges but talks are ongoing. Even for barges, where and where are the clear routes for barges to sail through?

“The controller has met with Nigerian Ports Authority port manager, but the question is who will foot the bill the containers have accumulated? There are some that have been here before the terminal was put on concession. We are gathering the figures on the number of overtime containers.”

Nwala said that compiling the list of overtime cargoes was a complicated issue, saying that there were some clearing agents with genuine cases who finished all necessary clearance but due to the bad road network could not take delivery of their containers.

She said, “We have had a meeting with the NPA. Overtime cargo means after 28 days, but for the past one year, you cannot finish clearing your cargo from the port and for a whole month, you will not get a truck to go in and move it out.”

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Guinness Nigeria Postpones Spirits Importation Exit, Extends Deal with Diageo

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Guinness - Investors King

Guinness Nigeria Plc has announced a delay in its plan to halt the importation of spirits as it extended its agreement with multinational alcoholic beverage company Diageo until 2025.

The decision, communicated through a corporate notice filed with the Nigerian Exchange Limited on Tuesday, cited a longer-than-expected transition period for separating its business from Diageo’s.

Initially slated for discontinuation in April 2024, the importation of premium spirits like Johnnie Walker, Singleton, Baileys, and others under the 2016 sale and distribution agreement with Diageo will now continue for an additional year.

The extension comes as the process of business separation between Guinness Nigeria, a subsidiary of Diageo, and Diageo itself faces unexpected delays.

In October, Guinness Nigeria had announced plans to cease importing spirits from Diageo, a move aimed at reducing its foreign exchange requirements.

However, the separation process has encountered unforeseen hurdles, necessitating the extension of the importation agreement.

The notice, signed by the company’s Legal Director/Company Secretary, Abidemi Ademola, highlighted the ongoing efforts by Guinness Nigeria and Diageo to implement the separation, originally scheduled for completion by April 2024.

The extension underscores the complexity of disentangling the businesses and ensuring a smooth transition.

Guinness Nigeria reaffirmed its commitment to the long-term growth strategy, aligning with Diageo’s decision to establish a new, wholly-owned spirits-focused business.

Despite the delay, both companies remain dedicated to managing the importation and distribution of international premium spirits in West and Central Africa, with Nigeria as a key hub.

The postponement comes amid challenges faced by Guinness Nigeria, including significant exchange rate losses, which amounted to N49 billion in the 2023 half-year operations.

Despite these setbacks, the company remains optimistic about its future prospects in the Nigerian market.

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Private Sector Warns: Interest Rate Hike to Trigger Job Cuts and Inflation Surge

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Private employers

As the Central Bank of Nigeria (CBN) announced a hike in the Monetary Policy Rate (MPR) from 22.75% to 24.75%, concerns have been raised by the private sector regarding the potential ramifications on job stability and inflationary pressures.

The move, aimed at curbing inflation and stabilizing the exchange rate, has prompted apprehension among business operators who fear adverse effects on the economy.

Representatives from the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and the Nigerian Association of Small Scale Industrialists have voiced their worries over the increased difficulty in accessing affordable credit.

They argue that the higher interest rates will impede the private sector’s ability to borrow funds for expansion and operational activities.

This, they fear, could lead to a reduction in business investments and subsequently result in widespread job cuts across various sectors.

The Lagos Chamber of Commerce and Industry (LCCI) acknowledged the necessity of the interest rate hike but emphasized the potential negative consequences it may bring.

While describing it as a “price businesses would have to pay,” the LCCI highlighted the current fragility of the economy, exacerbated by various policy missteps.

They cautioned that the increased cost of borrowing could stifle entrepreneurial activities and discourage expansion plans critical for economic growth and job creation.

Experts have echoed these concerns, warning that the tightening monetary conditions could exacerbate inflationary pressures and hinder economic recovery efforts.

With inflation already soaring at 31.70%, the rate hike could further fuel price hikes, especially in essential goods and services, thus eroding the purchasing power of consumers.

However, CBN Governor Yemi Cardoso defended the decision, citing the imperative to address current inflationary pressures and ensure sustained exchange rate stability.

He emphasized the need to restore the purchasing power of ordinary Nigerians and expressed confidence that the economy would stabilize by the end of the year.

Despite assurances from the CBN, stakeholders remain cautious, calling for a more nuanced approach that balances the need for price stability with the imperative of fostering economic growth and job creation.

As businesses brace for the impact of the interest rate hike, all eyes are on the evolving economic landscape and the measures taken to mitigate its effects on livelihoods and inflation.

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Breaking Barriers: Transcorp Hotels CEO Shares Journey from Crisis to Success

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Dupe Olusola

Dupe Olusola, the Managing Director/CEO of Transcorp Hotels Plc, reflects on her remarkable journey from navigating the depths of a global pandemic to achieving unprecedented success in the hospitality industry.

Appointed in March 2020, amidst the onset of the COVID-19 pandemic, Olusola found herself at the helm of a company grappling with the severe economic fallout and operational challenges inflicted by the crisis.

Faced with a drop in occupancy rates from 70% to a mere 5%, Olusola and her team were confronted with the daunting task of steering Transcorp Hotels through uncharted waters.

Undeterred by the adversity, they embarked on a journey of transformation, leveraging creativity and resilience to navigate the turbulent landscape.

Implementing innovative strategies such as introducing drive-through cinemas, setting up on-site COVID-19 testing facilities, and enhancing take-away services, Transcorp Hotels adapted to meet the evolving needs of its guests and ensure continuity amidst the crisis.

Embracing disruption as a catalyst for growth, Olusola fostered a culture of collaboration and teamwork, rallying her colleagues to overcome obstacles and embrace change.

Through unwavering determination and a commitment to excellence, Transcorp Hotels emerged from the pandemic stronger than ever, breaking profit and revenue records year after year.

“It’s indeed been a great opportunity to learn and relearn, to lead and to grow. When you see success stories, remember it’s a journey with twists, turns, ups and downs but in the end, it will all be okay”, she said.

Olusola’s leadership exemplifies the power of adaptability and perseverance, inspiring her team to transcend limitations and chart a course towards unprecedented success.

As Transcorp Hotels continues to flourish under her stewardship, Olusola remains steadfast in her dedication to driving innovation, fostering growth, and breaking barriers in the hospitality industry.

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