Importers demand faster processing of port debit notes

Chairman of Blue Diamond Bonded Terminal, Festus Mbisiogu

Uzotex Bonded Terminal, a subsidiary of Blue Diamond Logistics China, has called for urgent reforms in the processing of debit notes at Nigerian ports, saying importers should not have to wait two or three days to complete additional payments required for the release of their cargo.

The firm’s call was also echoed by other importers in the sector, as they noted that the implementation of their request would positively impact operations at the ports.

The Chairman of Blue Diamond Logistics China, Festus Mbisiogu, made the call recently in Lagos while speaking during the 20th Anniversary Ceremony of Blue Diamond Logistics China.

Mbisiogu argued that the debit-note process “should be completed within one or two hours once an importer has been assessed and directed to make additional payment.”

The logistics executive’s call for faster debit-note processing formed part of broader discussions at the event on the challenges facing Nigerian businesses involved in international trade.

His position comes against the backdrop of continuing concerns over cargo clearance timelines, port-related costs and the impact of delays on importers and the wider economy.

According to him, “while recent digital reforms by the Nigeria Customs Service have improved cargo tracking and reduced clearance time for some consignments, unnecessary delays remain in parts of the clearance process.”

He said the objective of port reforms should ultimately be to ensure that compliant importers can move their cargo out of the ports as quickly as possible after fulfilling all regulatory and financial obligations.

“Once an importer has been issued a debit note requiring additional payment, the process should not take two or three days. It should ideally be concluded within one or two hours,” Mbisiogu said.

Mbisiogu maintained that reducing such delays would improve the efficiency of Nigeria’s ports, lower the cost of doing business and help prevent avoidable accumulation of storage, demurrage and other charges.

The Blue Diamond chairman also commended the NCS for introducing digital innovations, adding that the innovations have improved the visibility of cargo and made it possible for importers to track consignments online.

Mbisiogu highlighted that the new digital processes have helped reduce the clearance period for some cargoes from about one week to between two and three days.

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He described the ability of importers to monitor cargo movement and release processes online as a significant improvement over the previous system.

Mbisiogu said the development demonstrated that technology could substantially improve Nigeria’s trade environment when properly implemented.

He, however, urged the NCS to sustain the reforms by identifying and eliminating the remaining bottlenecks in cargo clearance.

Mbisiogu also backed the NCS’s recent compliance actions involving bonded terminals, saying operators must understand that the authorities were increasingly monitoring activities carried out under their licences.

He said the enforcement drive would help strengthen confidence in the cargo clearance system and ensure that bonded facilities operated in accordance with regulatory requirements.

Also speaking, the former Governor of Benue State, Samuel Ortom, who attended the event, commended the company for what he described as resilience, integrity and reliability.

“Blue Diamond has shown resilience, has shown integrity, and has shown reliability. Those are things that have encouraged us to be here,” Ortom said.

A former Permanent Secretary, Federal Ministry of Petroleum Resources, Nicholas Ella, traced Blue Diamond’s growth to Mbisiogu’s decision to build a business around the difficulties Nigerians faced while trading with China.

Ella, who said he first met Mbisiogu in 2010 while serving at the Nigerian Embassy in Beijing, recalled how the entrepreneur helped Nigerian traders navigate language, sourcing and logistics challenges in China.

He urged Mbisiogu to maintain the values of commitment, dedication, persistence and ethical business practices that had sustained the company through its first 20 years.

The anniversary celebration also featured the recognition of staff and customers who had contributed to the company’s growth, with cheques and cash gifts presented to outstanding employees and loyal customers.

In Nigerian port operations, a debit note is a payment document issued when an additional amount is required before cargo can be released. It can arise where an importer or clearing agent is assessed for additional charges or where a previously calculated amount needs to be adjusted.