Calls Grow for Review or Scrap of KLT Customs Area Command Over Alleged Inefficiency
Calls Grow for Review or Scrap of KLT Customs Area Command Over Alleged Inefficiency
By Frank Odinukaeze
Concerns are mounting over the continued operation of the KLT Customs Area Command in Lagos, with stakeholders urging the Federal Ministry of Finance and the Nigeria Customs Service to either restructure or scrap the command over what they describe as two decades of operational inefficiency and waste of public resources.
A maritime stakeholder who has monitored activities at the command for over 20 years alleged that the KLT Customs Area Command has remained largely underutilized despite possessing vast land space,
inland waterway access and several bonded terminals capable of supporting cargo operations from the nation’s major seaports.
According to the stakeholder, the command operates with a full administrative structure similar to major port commands, including over 100 personnel, official vehicles and operational offices, but has failed to deliver commensurate economic value.
The source noted that while major commands such as Tin Can Island Port reportedly generate significant monthly revenue, the KLT Command has struggled to achieve comparable performance despite having extensive operational capacity, including phases 1 to 4 of the terminal area and more than 10 bonded terminals under its supervision.
The stakeholder argued that the persistent congestion at Lagos ports, prolonged cargo dwell time, high demurrage charges and operational inefficiencies are partly linked to the underutilization of the KLT Command.
He maintained that distributing cargoes to off-dock terminals and bonded facilities under KLT would ease pressure on Apapa and Tin Can ports, improve cargo clearance processes and reduce vessel waiting time.
Drawing comparisons with neighboring West African ports, the stakeholder cited the Port of Cotonou in the Republic of Benin, where cargoes are reportedly transferred directly to external terminals shortly after vessel arrival to reduce congestion within the main port.
Three major reasons were identified for the alleged inefficiency of the KLT Customs Area Command.
First, the stakeholder accused the Apapa and Tin Can Island Customs Area Commands of allegedly refusing to transfer sufficient cargo volumes to KLT, allegedly due to concerns over revenue retention.
He argued that customs revenue belongs to the federation account and should not be tied to competition between commands.
Secondly, the source blamed what he described as complacency among officers posted to the KLT Command, alleging that the command has operated for years without aggressive efforts to attract cargo traffic or improve productivity.
He added that several privately funded bonded terminals operating under the command are facing declining business activities due to low cargo allocation.
Thirdly, the stakeholder faulted the Nigeria Customs Service leadership for failing to address repeated complaints and petitions concerning the command’s operations over the years.
According to him, successive customs administrations have ignored the issue despite growing concerns about port congestion and the need to improve ease of doing business at Nigerian seaports.
The stakeholder therefore called on the Honourable Minister of Finance and the Nigeria Customs Service to urgently review the operational relevance of the KLT Customs Area Command.
He suggested that the government should either scrap the command and merge its bonded terminals with Apapa and Tin Can Island port commands or immediately restructure cargo allocation systems to ensure the KLT Command plays a more active role in port support operations.
He stressed that addressing the issue would improve cargo distribution, reduce congestion at the major ports and enhance efficiency within Nigeria’s maritime sector.
