Understanding Reintroduction Of International Cargo Tracking Note

One of the biggest challenges facing Nigeria’s maritime sector is the annual loss of billions in uncollected tariffs due to fraudulent cargo declarations.

Nigeria’s ports handle millions of metric tons of cargo annually, yet poor tracking mechanisms and loopholes in the supply chain result in significant revenue losses and security risks.

It’s no more news that importers, clearing agents and freight forwarders often manipulate cargo manifests, leading to significant discrepancies in import duty assessments.

The government has been losing several billions of naira annually to this action and the government can no longer afford to continue losing revenue due to outdated cargo monitoring systems.

However, to put an end to this act and the Importation of contraband, especially arms, ammunition, and banned and illicit drugs, the government must ensure the quick re-introduction of the International Cargo Tracking Note (ICTN).

The ICTN serves as a comprehensive and verifiable system that guarantees correct cargo valuation, eliminates fraudulent under-declarations, enhances Customs oversight, reduces smuggling and illegal transhipment, automates data accuracy and improves government revenue collection.

According to Marítime experts, the introduction of ICTN is not just another bureaucratic policy but a game-changer for Nigeria’s economic, trade, and security interests.

They argued that when implemented effectively, ICTN will reduce smuggling and illicit trade, enhance cargo visibility and supply chain efficiency, improve Customs revenue collection, strengthen Nigeria’s global trade reputation, and facilitate faster and cheaper cargo clearance.

For instance, many countries, including Ghana, Cameroun, Turkey, Congo, Guinea Bissau, Guinea Conakry, Niger, Chad, and the UAE, have adopted ICTN with positive results in cargo monitoring and trade security.

It is observed that without a structured cargo tracking system, Nigeria risks becoming a weak link in international trade networks, where illicit shipments can pass through unchecked.

Also, foreign investors and trade partners prioritise secure and predictable trade environments, and ICTN would help Nigeria strengthen its reputation as a country committed to transparent and efficient trade policies.

There is also no gain saying the fact that effective implementation of the ICTN is expected to shore up the revenue base of the government from $90 million to $235 million per annum. The CTN would also curb the Importation of arms and ammunition through the nation’s seaports.

It would also plug revenue leakage, put an end to the under-declaration of cargoes, and importation of banned drugs, among others, into the country.

ICTN implementation will also maximally benefit the economy, businesses, and national security as experts argued that the scheme will help position Nigeria as a trade powerhouse in Africa and beyond.

However, the executive secretary of the Nigerian Shippers’ Council (NSC), Dr Pius Akutah, has allayed stakeholders’ fear that the ICTN is another layer of adding to the cost of doing business at the seaports.

Dr Akutah, speaking to LEADERSHIP, reiterated that the ICTN does not introduce excessive fees that will negatively impact businesses or trade at the seaports.

According to him, the ICTN system is designed for seamless integration with existing frameworks and acceleration of clearance times, not delay.

“The minister of Marine and Blue Economy, Adegboyega Oyetola, has been pushing forward for the implementation of the ICTN because every stakeholder is yearning for the implementation of the ICTN because of the economic value it will bring to the country in terms of revenue generation and also the security of cargo that comes into the country.

“So all of these factors, these reasons, necessitated all of the efforts that the minister is making to ensure the implementation of ICTN. Regarding the ICTN, I don’t think there has been any fear from any quarter about the cost of the implementation. Rather, stakeholders are eager to see that it has been implemented because of the security of the cargo that comes into our country.

“Nigeria is not the only country implementing the ICTN; we are coming behind. And like you said, there are concerns about the prolonged delay,” Akutah stated.

Also explaining the benefits of the ICTN, a former executive secretary of the council, Hassan Bello, argued that while 80 per cent of the goods coming into Nigeria are under-declared, the ICTN will advance cargo information to the government thereby, no hiding place for under-declaration of cargoes.

According to him, the Cargo Tracking Note will allow the government to know what items are coming into Nigeria from their port of loading.

He explained further that the weight, origin, cost and everything about the goods would be known before arriving in Nigeria.

“The CTN will be sent electronically to the Customs because it is a security document that will give room for no more firearms and other contraband coming into the country or at least will be known before coming in.”

Continuing, Bello averred that the ICTN would end the chaos experienced in the process of processing imported goods at the ports.

“ICTN is a source of data for us to organise and make plans, it is also for faster clearance of cargo because when you know what is coming in, one can arrange ahead for it to be cleared quickly and having the national single window, i.e,  the one-stop shop for the interaction of all relevant agencies at the port will make the ports efficient.”

Bello believed that the policy, apart from being beneficial to the country, would generate N17 billion annually and would be at a very negligible cost to stakeholders.

“It would also help to curb the importation of arms and ammunition into the country. The Cargo Tracking Note, when introduced and reintroduced, will be at a very negligible cost.

ICTN is a security thing because when we have it, there won’t be smuggling of firearms and all other contraband. Smuggling of contraband won’t happen because everything coming in will be tracked, we will know the weight of the cargo, values and materials used.

Bello said the ICTN would also help the Standards Organisation of Nigeria (SON) and the National Agency for Food Drugs Administration and Control (NAFDAC) to fight substandard products and fake drugs, respectively.

“SON and NAFDAC will benefit by knowing whether products being imported are fake or not. ICTN is another instrument that will add value tremendously to shipping development as it will boost Customs revenue collection in the sense that it will abate under–declaration and concealment.

“The scheme will boost the revenue of NPA because there will be no more alteration of the manifests. It will boost the revenue of NIMASA because the – -declaration of the weight of ships will not be there any longer,” Bello stated.

On his part, the former minister of Transportation, Mu’azu Sambo, noted that the ICTN, when operational, would instil a regime of effective tracking of crude oil export by eliminating oil theft, which in recent times has become rampant.

“The electronic cargo tracking device will take care of under-declaration, and secure our export and import cargo invoicing. Ghana, Benin Republic and several other countries that are already using the scheme and they have all recorded improvement in their port services, especially on issues of concealment and wrong calculation for cargoes,” Sambo noted.

Corroborating the former minister, the Sea Empowerment and Research Center (SEREC) said the reintroduction of electronic cargo tracking notes will curb insecurity and improve trade facilitation.

Its head of Research, Eugene Nweke, said the CTN is a crucial consideration, as the goal is to facilitate trade, and not to create more barriers or expenses to the shippers.

He stated that Electronic CTNs are becoming increasingly popular, as they provide a more efficient and secure way to track and manage cargo.

He said: “Presently, through the Nigeria Shippers Council, the Nigerian government has approved the deployment of electronic cargo tracking notes for port operations, which is a significant step forward. Expectedly, the intention is to reduce delays in cargo shipment and cut costs for importers, by making the process more efficient and transparent, which is a win-win for everyone involved.

“Additionally, the reintroduction of electronic cargo tracking notes is also seen as a way to curb insecurity and improve trade facilitation. By providing an accurate and reliable system in place, ports can better track and manage cargo, reducing the risk of theft, loss, or damage. This, in turn, can help to increase trust and confidence in the trade process, making it more attractive to businesses and investors.

“Unfortunately, the implementation of this approved modest industry trade security and facilitation tools seem to be delayed for reasons not communicated to the industry stakeholders,” he stated.

He, therefore, called on the federal government, especially the minister of Marine and Blue Economy to support the Nigeria Shippers Council, the industry economic regulator, to flag off the commencement of the Cargo Tracking Note implementation without further delays for port operational efficiency’s sake.

Nweke, however, emphasised that the Nigerian Shippers’ Council has the onerous task of introducing and managing the system in a manner that would not add to the cost of doing business at the ports.

He said the cargo tracking note is a relevant document in the international trade and port security system, even with the introduction of modern trade facilitation tools.

”It provides a standardised way of tracking and managing cargo, ensuring that it is properly declared, cleared, and released.

In shipping operations, he said the CTN remains a critical component of shipping operations and industry, providing a standardized way to track and manage cargo, ensure compliance with regulatory requirements, and mitigate risks associated with cargo transportation

Besides, he said the CTN provides shippers with a unique identifier for their cargo, allowing them to track their shipments and ensure that they are properly declared and cleared through customs, adding that this helps to reduce the risk of delays, fines, and penalties associated with non-compliance.