A Nigerian business group has cited delays in processing letters of credit (L/Cs) as one reason why new customs arrangements at Nigeria's ports are unworkable.

African Maritime Business Consultants (AMBC) is now calling on the Nigerian government to overhaul the way the Nigerian Customs Service (NCS) is managed so that it helps rather than hinders the country's traders.

No time

According to AMBC, Nigerian customs officials have issued a circular reducing the amount of time cargo can be held in ports before being cleared through customs from 90 days to 28 days.

Apart from not being given adequate warning about this change, the group names several hindrances which it says makes the 28 days clearance time impossible.

Delays

Top of AMBC's list are the delays it says traders are experiencing with banks processing L/Cs. This, the group says, is leading to delays in payments to exporters who will not through their banks authorise shipments to be processed until they are paid.

Other causes of delay flagged up by AMBC include the time it takes inspectors to produce risk assessment reports, delays in banks sending confirmation of duty payments to customs, problems with documentation and bottlenecks in cargo examination and customs processing.

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