President Bola Tinubu recently inaugurated a steering committee for the National Single Window Project (NSWP), which will improve trade efficiency and boost economic growth. Domiciled at the Federal Inland Revenue Service (FIRS), the NSWP will ensure 24-hour clearance of goods at the ports. It will also enhance trade and ease of doing business. The project will generate about $2.7billion revenue to the national treasury. Currently, Nigeria loses $4billion annually to import-export infractions due to bureaucratic bottlenecks, especially at the ports. Under the system, documentation of international or cross-border trade will be done through a single platform for ease of doing business. This will stop dealing with multiple agencies in different locations to obtain the necessary papers.
The initiative is timely and will put the economy on the path of growth. We call for its seamless implementation. It is a game changer that will revolutionise the conduct of doing business in the country that is currently riddled with delays and corruption. There is no doubt of its immense economic benefits. If the system is efficiently run, it can achieve annual growth of seven per cent of Gross Domestic Product (GDP).
Data harmonisation is crucial to the success of the new initiative. The current international trade environmental is complex. It involves disparate systems and requires multiple documents per transaction. Nigeria’s lack of comprehensive trade facilitation system has caused it huge losses. The new policy will hopefully change the narrative provided it is well implemented. Nigeria is currently ranked 114th in the world, out of 140 countries, and 14th in Africa in the Global Competitiveness index ranking.
We enjoin the government to emulate countries that have successfully implemented the Single Window system. The countries that have had a significant mileage in trade efficiency using the single window platform include Singapore, Indonesia, Saudi Arabia, South Korea, and Kenya. No doubt, the initiative will aid operations at the ports.
Last year, the management of Nigeria Ports Authority (NPA) unveiled plans for ports’ modernisation programme expected to cost over $1.6 billion. Investment in port infrastructure and rehabilitation will provide huge opportunities that will make Nigeria a preferred destination in African. Failure to fix the ports will affect their operational efficiency of the single window project. We believe that involving private partnership in the project will make it efficient. For example, the Tincan Island Port covers 79 hectares of land, and provides bunkering and ship repair services for vessels with a maximum weight of 35,000 DWT. It also has the capacity to handle diversified cargoes, with each terminal operator specialising in different forms of cargo. Also, the Lekki Deep Sea Port located in Lagos Free zone is a multi-purpose port and the largest sea port in West Africa when fully operational. The Apapa Port, currently the largest and busiest port in the sub-region, is among the ports slated for revamping. With these projects, the government has demonstrated its commitment to enhance marine transportation. Nigeria requires a working port system for the single window project to be successful.
This is crucial at this time that the economy needs fresh and imaginative ideas to put it on the path of recovery and growth. Currently, the inefficiency associated with road-dependent cargo evacuation to their destinations has raised cost of goods and services. As a result, better, effective alternative plans have become imperative. This includes the implementation of barges and expanding rail and road infrastructures. All of this has become necessary to streamline port operations, reduce costs and enhance traffic emanating from the launch of the African Continental Free Trade Area (AfCFTA).
Nigeria needs total automation of its businesses in one single window shop that will enhance trade competitiveness. The modernisation of businesses will make Nigeria a significant hub on the continent. The country’s economic future lies in this single window project. Digital technology at the ports and other key business centres will also help to streamline operations, track cargoes and optimise the flow of goods and services. It will create job opportunities.
Private sector empowerment is needed to unlock the huge potential in the ports sector of the economy. Nigeria cannot afford to be left behind in this sector. Instructively, Gabon has put in place similar measures that will facilitate free trade. This has become even more necessary now for Nigeria to regain its rating in the global maritime community and balance of trade. Therefore, government must ensure that the laudable project succeeds.