BusinessCOVID 19: Demurrage: NPA Warns APM Terminals, Others Against Violation

COVID 19: Demurrage: NPA Warns APM Terminals, Others Against Violation

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By Fola James

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The Nigerian Ports Authority, NPA has warned APM Terminals and other terminal operators in the seaports of serious consequences if they flout its directives that importers should not be charged demurrage and terminal storage fees for the 14 days extension by the federal government to contain the spread of the corona virus pandemic.

President Muhammadu Buhari had had extended the lock down in Lagos, Ogun and Abuja by another14 days to enable health workers tackle the spread of the novel COVID 19 pandemic.

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NPA’s timely intervention, keen watchers of the nation’s maritime sector say, came on the crest of protest by agents and importers that the fees should not be passed to them because they are not responsible for the corona virus shut down.

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Terminal operators charge extra fees from importers when they fail to pick their containers from their terminal within a specified period.

But the Hadiza-Bala Usman –led NPA has now directed the Operators to forgo the fees in national interest.

The agency said importers should not suffer double –jeopardy after their businesses have already been impacted by the economic problems caused by the pandemic.

According to a statement by NPA’s General Manager, Corporate Communication and Strategy , Jatto Adams, it said the decision was part of the government’s fiscal measures against COVID 19.

The statement reads in part “NPA has directed all Terminal operators to extend the suspension of all applicable terminal storage fees on consignments (demurrage) for another fourteen days effective April 13, 2020.

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This follows the extension of the Lockdown in response to the COVID-19 outbreak by President Muhammadu Buhari on Sunday, April 12, 2020.

This gesture is in recognition of the pressure that the COVID-19 pandemic imposes on businesses, the responsibility imposed on the Authority to relief this burden on its customers as well as attaining the objective of the Federal Government’s Ease of Doing Business Policy at this trying period. “

In compliance with the directive, NPA said the terminal operators will also be compensated for their losses, warning defaulters of serious consequences.

“The Authority states that compensation to terminal operators will be as spelt out in its April 8, 2020 letter to the terminal operators.

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The authority will not tolerate any form of non-compliance with directive and not hesitate to apply the appropriate sanctions.

The NPA thanks all stakeholders for their cooperation”, NPA said.

Meanwhile, sectors analysts told the magazine that NPA should set machinery in motion to make sure that the terminal operators complied with the order because the operators have been known to disregard similar directives in the past.

 


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