CHALLENGES FACED BY IMPORTERS IN NIGERIA
There are a number of challenges faced by importers in Nigeria. This so, despite the gross underdevelopment of our local industries and huge needs to keep importing to keep the country running on a daily basis. Below are 5 of the most common of them all;
WHAT ARE THE 7 OF THESE COMMON PROBLEMS INCLUDES
BANS AND PROHIBITIONS OF CERTAIN GOODS THAT IS IMPORTANT TO IMPORTERS IN NIGERIA
A good or a commodity whose distribution and consumption in a country are prohibited are known as a banned commodity or contraband. They are foreign goods, in particular, deemed harmful to the citizen or the economy overall. Canned meat, frozen meat, certain agro-produce such as … are some examples of contrabands in Nigeria. And anyone caught importing such goods is considered a smuggler, a crime that is punishable by law. Importers in Nigeria are not expected to import such goods.
Whereas, infrastructure and industry are poor. Certain contraband goods like Corned Beef are not produced locally. Importers in Nigeria are therefore forced to indulge the unscrupulous act of importing (or smuggling in) from Brazil, Argentina, China every day in collusion with the Federal Government Officials (custom).
If the industry were good enough, there had not been recourse to all of these. Now if there is no industry for most of these contrabands, it is unwise on the part of the authorities, to place bans on such goods. First provide the infrastructure that can meet the daily demands of these goods, else allow us to bring them in for people who need them, some importers in Nigeria agues.
Needless to say that as a result of the high risks associated with the import of some of these contrabands, lots of importers who are successful make a lot of money from it. Making others covet the criminal act of smuggling as a veritable venture. This then results in enticing others into the unscrupulous trade.
With an increase in smugglers, even goods that are banned for the genuine fact that they are produced locally now get imported as well. This further goes to create competition with locally produced goods, further straining the burgeoning local manufacturing industry.
IMPORT DUTY/TARIFF ON GOODS
Importers in Nigeria are expected to pay certain levy or taxes that are known as import duties. This is the amount imposed on goods imported into a country by the government of the importing country. It is a form of revenue generation for a country as well. The primary aim however is to discourage the import of certain goods to favor indigenously available substitutes.
Alas, the rationale for imposing these tariffs seems faulty. So items that are not available in Nigeria, yet required by the common man, still get into a high tax bracket.
This leaves certain importers in Nigeria to either become uncompetitive or unscrupulous and go against the government officials.
COMPLICATED/BUREAUCRATIC CUSTOM ADMINISTRATION
Most who are new in the import industry, or businessmen who wish to venture, end up becoming discouraged by the complex bureaucracy of the Nigerian Custom. While existing importers in Nigeria are being frustrated. It is however a subtle attempt by the Federal Government to discourage importation and reduce the value of goods brought into the country in a legal manner. This is to help maintain a favorable trade balance for a healthy economy.
There are invisible tariffs that mandated and conditions an importer in Nigeria must go through to be certified. One of such conditions is the disclosure of bankers which is an important intermediary in international trade.
QUALITY REJECTION
There are times when goods leave foreign land in good conditions only to arrive at the port of discharge in Nigeria to find out that the goods are damaged. This is a very common occurrence. This often causes grievous rejection for which nobody wants to take accountability easily. And the amount or quantity of spoilage is proportionate to the amount of loss incurred by the importer.
DOCUMENTS AND CERTIFICATES
Understanding the requirements of the documentary process of the Nigerian Customs Authorities is a major problem faced by importers in Nigeria. Certain kinds of goods may require different documents from other very similar kind of goods. This often results in confusion and incorrect documentation to an average importer. This may result to additional expense to the importers as they may need to pay extra staff to ensure accuracy. If he chooses to manage manpower and inevitably suffers inaccuracy of documentation, shipment then gets stock at port of discharge. And no one seems to worry about the demurrage accruals.
LOGISTICS
There is no stressing the fact that logistics is a crucial aspect of international trade Often this becomes the biggest pain area on the slightest mishaps. Logistics problems for importers in Nigeria include
- Delay of trans-shipment
- Cancellation of inbound vessels
- Damage of goods on transits, etc.
These have the ability to disrupt the entire schedule, causing lots of setbacks to an importer, which could result in loss of finances, customers, etc. A major problem in this area too is the fact that logistic companies in Nigeria do not communicate the exact problems to importers in Nigeria. Due to the information gap, companies/individuals cannot think of a proper alternative plan of action that may enable them to curtail their loss to a bearable minimum.
BRIBERY AND CORRUPTION
It is no news how that due to the unscrupulous demands of tips from government officials from importers in Nigeria, the cost of importation becomes higher than normal. The high cost makes the importer uncompetitive in the market. This makes an importer wants to sort other alternatives to importing their goods apart from the legal means. One way some resort to includes smuggling goods into the country.
CONCLUSION
The problems facing importers in Nigeria are much. Which also serves as a deterrent to many upcoming importers. Getting in touch with the right professionals to assist you where possible is, therefore, a prerequisite to a successful first-time importation or affordable and safe importation. you could also learn how to import safely from china on our platform here