It is more expensive to ship goods from the European Union to Nigeria, compared to other African countries like Ghana and South Africa. This is according to a report by SBM Intelligence, which was published last week.
The Details: The report, which took three months to compile and analyse, revealed that South Africa’s Durban Harbour is the least expensive in terms of shipping charges, terminal charges, and the cost of transporting goods to local warehouses.
In the same vein, the Tema Port in Ghana is less expensive compared to what obtains at Nigeria’s Apapa Port. The report chillingly revealed that Nigeria’s Apapa Port is five times more expensive than Durban Harbour and three times more expensive than Tema Port. Part of the report said:
“SBM tracked shipments over a period of three months to three ports in Africa and came up with this average costs of first, shipping goods in from the EU, the terminal charges that containers pay while they are in those ports, and the average cost of local transportation from the port to selected warehouses within the port cities.
“The costs for the Apapa Port in Lagos are by far the highest, five times higher than in Durban, South Africa, and three times higher than in Tema, Ghana. While each of the component parts of this dataset, shipping charges, terminal charges and local transport, are highest for Lagos, it is local transport, 10 times the cost in Lagos than in both Durban and Tema, that really makes Lagos an expensive place to do business in.”
More Details: The SBM report went further to reveal that at the Apapa Port, importers spend an average of $374 in shipping charges. This is far more than the $247 importers pay at the Durban Harbour for the same purpose. Meanwhile, at the Tema Port, the average shipping cost is $321.
In terms of terminal charges, people shipping goods through Nigeria’s Apapa Port pay an average of $457, compared to $180 average costs at the Durban Harbour and $280 at Tema Port.
When transporting imported goods from Nigeria’s Apapa Port to local warehouses, businesses spend an average cost of $2,050. This is far more than the $208 it costs to transport containers from Durban Harbour to South African warehouses. In Ghana, it costs just $285 to transport containers to local Ghanaian warehouses.
What this means: Perhaps this explains why there is always heavy congestion at the Apapa Port, which serves as Nigeria’s main port. Earlier this year, the Nigerian Ports Authority (NPA) declared an emergency at the port due to a buildup of massive congestion. A temporary solution was even put in place to divert vessels to alternate terminals. But it appears the root cause remains unsolved.
The SBM report also raises questions about Nigeria’s ease of doing business. According to Nairametrics’ commentator and economic expert, Kalu Aja, “if it is easy to do business in Nigeria, then importers should be able to clear goods faster and cheaper.”
Recall that Nigeria recently moved up fifteen places to number 131 in the latest ease of doing business index, as earlier reported by Nairametrics.
Commenting further, Kalu Aja noted that proper implementation of the Africa Continental Free Trade Area (AfCFTA) could enable Nigeria to become a major export-import hub. He said:
“With the ‘open borders’ of AfCFTA, that’s a key advantage as Nigeria could become an import-export hub. But then again, Nigeria would need to do a lot of work to restructure its port system before it can fully take advantage of AfCFTA.”
Meanwhile, Nairametrics had reported that the Federal Government claimed it has started positioning the nation to benefit fully from the AfCFTA and take advantage of the opportunities it provides.
The Managing Director, Nigerian Ports Authority (NPA), Hadiza Bala-Usman, stated that the development would ensure smooth transmission of goods and investments through the ports. According to her, it would boost the trade relationship between Nigeria and other countries.
Why it matters: Infrastructure upgrade creates opportunities for the nation. The deplorable state of the ports in Nigeria has become a trade barrier, preventing connectivity, which is costly to companies depending on the ports for importing and exporting of goods. Bala-Usman said with this removed, and dredging of seaports, as well as the elimination of corruption, and manual processes in the sector, enormous opportunities would be recorded.
You may download the SBM Intelligence report by clicking here.
#EndSARS: CACOVID earmarks over N250 billion to rebuild police stations and create jobs
CACOVID has budgeted nothing less than N250 billion to rehabilitate damaged police stations across the country and solve the issue of unemployment.
The Coalition Alliance Against COVID (CACOVID) has budgeted nothing less than N250 billion to rehabilitate damaged police stations across the country and solve the issue of unemployment.
This is in response to the post-EndSARS violence which led to the loss of lives and valuable property last October.
This is according to a recent press release by the CBN, and seen by Nairametrics. The latest action is sequel to series of decisions reached at the stakeholders’ engagement under the CACOVID, which is aimed at developing measures that will support the government’s effort in rebuilding confidence in the nation’s economy.
What you should know
• In a bid to further strengthen the security apparatus in the country, CACOVID has committed to providing over N100 billion to procure equipment and gadgets for the Nigerian Police Force over the next 2 years.
• It also earmarked the sum of over N150 billion to set up and implement the Youth Development Programme which will be available at selected training centres across the country. The programme is expected to provide vocational and technical education for at least 4 million Nigerian youths over the next 5 years, with beneficiaries getting trained on craftwork, plumbing, masonry, carpentry, and other artisanal related skills for which sufficient demand exist in Nigeria.
- The selected student/beneficiaries will be eligible to access a N25 billion fund domiciled to support the entrepreneurial drive of the beneficiaries
- For the out-of-school graduates that possess certain Entrepreneurial skills, CACOVID will be working with Bankers Committee to complete the Creative center at National Arts Theater area of Lagos in four select areas namely; ICT and software design/development, Fashion, Music and Movies. This project is expected to cost the Bankers Committee over N40 Billion.
Other key resolutions of the Alliance include;
- Banks and financial institutions would be required to extend relief through concessionary loans to affected businesses and firms, so they can rebuild and restock their stores and continue to conduct their business activities
- CACOVID has committed to fully rehabilitate all 44 damaged and destroyed police stations nationwide in a bid to restore provision of security in affected locations.
Why it matters
The response is a way of complementing the Federal Government’s effort of rebuilding the economy which has been badly affected by the pandemic and violent demonstrations. As a way of forestalling future occurrences, CACOVID highlighted unemployment as a key issue that ought to be addressed, in lieu of that, a Youth Development Fund which is aimed at advancing entrepreneurship in the country, is mooted.
Covid-19: African Union in talks with China and Russia over vaccine
The AU and Africa CDC have revealed that they have reached out to both China and Russia over the possibility of vaccine partnerships.
The Africa Centres for Disease Control and Prevention and the African Union announced they have been in talks with China and Russia over the possibility of vaccine partnerships to ensure that Africa is not left behind when vaccines become available.
This was disclosed by John Nkengasong, Africa CDC Chief, at the Bloomberg Invest Africa online conference.
“We are not limiting ourselves to any particular partner. As a continent of 1.2 billion people, we are willing to work with any partner who adheres to our strategic plan for vaccine development and access in Africa.
He said that the WHO Covax programme only covers 20% of the population, but Africa will need 60% of its population vaccinated to achieve herd immunity.
“There are multiple avenues being explored now to make sure Africa has the appropriate doses of vaccines and also that we have that in a timely fashion, not in a delayed manner,” Nkengasong said.
He revealed that the AFREXIM Bank agreed to finance vaccine procurement with $5 billion and is waiting to see how much it will receive from World Bank’s $12 billion vaccine procurement fund for developing nations.
What you should know
Nairametrics reported earlier this month that Pfizer Inc. disclosed that its experimental vaccine, which is jointly developed with BioNTech, was more than 90% effective in preventing COVID-19, based on initial data from a large study in the ongoing phase 3 trials.
Last week, a pharmaceutical company, Moderna Inc., stated that its COVID-19 vaccine was 94.5% effective in treating coronavirus, after preliminary analysis of a large late-stage clinical trial.
The G-20 nations also announced a pledge to pay for vaccine distribution to developing nations that could not afford it. The leaders also unveiled a debt extension programme to developing nations during the weekend’s G-20 summit.
The Federal Government of Nigeria also announced through the Ministry of Health, that it would inaugurate an 18-man Covid-19 Vaccine Task Team, in a bid to ensure vaccine security In Nigeria.
Covid-19: EU considers skipping vaccine patents to boost vaccine access
The EU has disclosed plans to increase its access to Covid-19 vaccines by offering financial incentives to vaccine production companies.
The European Union (EU) says its planning emergency measures to increase its access to Covid-19 vaccines including sidestepping patent rights and offering financial incentives to vaccine production companies to move production to Europe.
This was revealed in an EU document on Wednesday and reported by Reuters. The Document says the EU may create an emergency coordination mechanism to be issued at short notice when the EU needs a vaccine license, which is different from fully patent waivers, discussed in the WTO last week.
The EU says the new move will ensure faster procedures during a pandemic, which will enable generic production in the EU without the consent of patent holders.
“The Commission sees the need to ensure that effective systems for issuing compulsory licenses are in place, to be used as a means of last resort and a safety net, when all other efforts to make IP (intellectual property) available have failed,” the EU’s document said.
The EU’s actions may be triggered by its inability to access the antiviral drug, remdesivir, during the pandemic, as the United States ordered most of the stock.
The EU also disclosed that it will begin a consultation process with pharmaceutical companies next year to address issues in its pharmaceutical value chains. They added that measures could be imposed to encourage manufacturers to move pharmaceutical production to Europe from China and India.
“The Commission calls on member states to ensure that the tools they have are as effective as possible; for instance, by putting in place fast-track procedures for issuing compulsory licenses in emergency situations,” the EU said.
They added that it is urgent “to assess whether manufacturing capacity for certain critical medicines may be required in the EU.”
“We need to be able to rely on ourselves, not on others,” the Commission’s Vice President, Margaritis Schinas said. He disclosed that the EU is working on more compliance with drug supply need and increased stock levels by 2022.
What you should know
This comes as surprise considering the EU rejected a World Trade Organization (WTO) proposal last week to waive the intellectual property rights needed for the manufacturing of Covid-19 vaccines. The waiver would have made the vaccine access cheaper for developing nations.