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Reading: NAGAFF Urges FG Action Over Persistent Customs Server Failures, Citing N193 Million Daily Losses
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News Point247 > News > Just In > NAGAFF Urges FG Action Over Persistent Customs Server Failures, Citing N193 Million Daily Losses
Just InMaritime

NAGAFF Urges FG Action Over Persistent Customs Server Failures, Citing N193 Million Daily Losses

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Last updated: 2024/05/14 at 6:35 AM
2 years ago 3 Min Read
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The National Association of Government Approved Freight Forwarders (NAGAFF) has made a fervent appeal to the Federal Government, urging immediate intervention to address the recurrent server failures of Web Fontaine, the IT firm managing the Nigerian Customs Service’s (NCS) automation system. These technical glitches have reportedly resulted in severe disruptions to trade operations, leading to substantial financial losses.

In a formal complaint addressed to the Federal Minister of Finance, Mr. Wale Edun, Alhaji Tanko Ibrahim, the National Coordinator of NAGAFF’s 100 Percent Compliance Committee, outlined the dire consequences of the ongoing server issues. Tanko emphasized the urgent need for intervention, citing the significant financial toll exacted by the disruptions.

According to Tanko, the Customs’ server failures have led to the entrapment of approximately 1,600 containers at major ports such as Apapa, TinCan, PTML, and Kirikiri Lighter Terminal. These disruptions have resulted in daily losses estimated at N193 million due to accruing demurrage charges imposed by terminal operators and shipping companies. Terminal operators are charging N62,000 per day, while shipping companies impose a daily charge of N58,000 per container.

Tanko described the situation as a “recurring decimal,” noting that it has heightened tensions within the freight forwarding community and prompted calls for a review of the contract with Web Fontaine. Despite reports suggesting the possibility of a new service provider taking over, freight forwarders are demanding a comprehensive overhaul of existing agreements to address what they perceive as “gross incompetence” on the part of the current service provider.

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Urging the Minister to intervene urgently, Tanko highlighted the mounting frustration among freight forwarders and warned of potential crisis if the situation persists unchecked. He stressed the need for immediate action to stave off further financial losses and restore confidence in the Customs’ automation system.

Tanko concluded by calling for a thorough review of the contract with Web Fontaine and expressed dismay at the alleged appointment of a new service provider in light of the ongoing challenges faced by the Customs’ automation system. He emphasized the critical importance of ensuring the reliability and efficiency of the system to facilitate smooth trade operations and mitigate financial losses for all stakeholders involved.

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