Change in Monetary Policy Caused Drop in Import Volume – Customs

The Nigeria Customs Service, Kirikiri Lighter Terminal has attributed the drop in import volume to the effect of the monetary policy.

A statement signed by the Customs Area Controller in charge of the command, Timi Bomordi, said that the command collected a total of N10m from imported goods, adding that the amount represented 77 per cent of its expected revenue for the quarter.

“So far, in the first quarter, the command has collected a total of N10bn. This amount represents 76.87 per cent 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.”

He added that the command had an anticipated revenue target of N55bn for the year 2023.

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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 have been raised to shore up the shortfall in revenue.”

According to him, “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.”

Bomordi said that the command had an installed capacity to handle about 6,000 twenty-foot equivalent units but was currently functioning less than 10 per cent of its capacity.

“KLTC has an installed capacity of handling about 6,000 TEUs, but currently it is functioning at less than 10 per cent 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.

“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 berthing of seagoing vessels. This challenge has recently been overcome with the introduction of ocean-going lighter barges with the capacity of moving over 200 TEUs.”