Customs

Customs: KLT command generates N10.5 billion in Q1, laments low import volume.

Customs: KLT command generates N10.5 billion in Q1, laments low import volume.

 

Kirikiri Lighter Terminal (KLT) command.of the Nigeria Customs Service on Wednesday gave its score card for the first quarter of the year, 2023.

According to a release e-signed by the Area Controller, Comptroller T. Bomodi, the command generated a total of NIO,572,518,271 between January Nd March, 2023.

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The figure, represents 76.87 percent of the expected revenue generation of the command within the period under review.

The Controller adduced the low revenue generation to downturn in import volume in the command

Bomodi added that the command however shored up the shortfall in revenue with N68.5m from Demand Notices (DN) to avoid revenue leakages.

Text of the release, “The Command is saddled with the responsibility of trade facilitation, revenue generation and the enforcement of fiscal policy with an anticipated revenue target of N55 Billion for the current year (2023).

“It has taken steps to invigorate its revenue drive by encouraging shipping companies and other critical stakeholders who had up to this period overlooked the command as a strategic destination of choice for incoming and outgoing cargoes.

IMPORT

“So far, in the first quarter, the Command has collected a total of NIO,572,518,271. This amount represents 76.87% of its expected revenue for the quarter. While we acknowledge the impact of monetary policy changes and the effect of exchange rates on business, the overall effect has been a downturn in import volume, hence the Command’s performance.

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“However, all hands are on deck to safeguard and protect all revenue accruable from import and export trade, to this effect Demand Notices to the tune of N68.5m has been raised to shore up the shortfall in revenue.

EXPORT

“Prior to this period, KLTC was used as a transit hub for exports. However, since the establishment of an export processing terminal, all export procedures have since commenced in the Command with an anticipated uptick in export volume.

“The first quarter of 2023 also saw the establishment of a clinic for the Command which was commissioned by the ACG Zone ‘A’ on behalf of the CGC, this has significantly contributed to the well-being of Officers as all health-related challenges are given prompt attention before they are referred to other facilities.

“Kirikiri Lighter Terminal Command has a strategic advantage over other ports in Lagos, its unique location allows for immediate entry and exit, unlike other ports where there is an average waiting time of seven days. Its major impediment is the draft which restricts the direct berth of sea-going vessels.

“This challenge has recently been overcome with the introduction of ocean-going lighter barges with the capacity of moving over 200 TEU’s.

“Given its location the command allows for the easy evacuation of exports and empty containers, a challenge most shipping companies and terminals have difficulties overcoming.

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“KLTC has an installed capacity of handling about 6,000 TEUs but presently it is functioning at less than 10% of its installed capacity and there is a lot of room for growth. With the commissioning of a few new terminals and the promise of increased cargo allocation, we are hopeful of a positive turnaround in activities both for imports and exports as we believe that as trade volume increases, so will the revenue profile.”

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