Operators Blame Forex as Vehicle Import Crashes by 61%
The importation of vehicles into Nigeria dropped from 28,024 units in the first quarter of 2023 to 10,991 units in the same quarter of 2024, representing a 60.8 per cent decrease, a document by the Nigerian Ports Authority stated.
The document titled, ‘Nigerian Ports Authority: Ports Performance Report January to March 2024’, sighted by Economic Confidential on Monday, also showed that Nigeria’s ports welcomed 251 ships in the first quarter of 2024.
According to the document, the figure represented a 4.3 per cent decrease from the 275 ships that visited the nation’s seaports within the same period in 2023.
“Vehicles importation dropped by 60.8 per cent from 28,024 units in the first quarter of 2023 to just 10,991 units in 2024,” the document stated.
It also showed that the total cargo volumes declined within the period under review, reflecting a contraction in trade activities and potentially signaling underlying economic challenges or shifts in the import-export balance.
It stated that the 4.3 per cent reduction in ship visits could be attributed to a variety of factors including, “changes in global shipping routes, adjustments in shipping line strategies, or the impact of economic policies affecting maritime trade.”
In terms of cargo traffic, the total cargo throughput, excluding crude oil, reached 21,186,348 metric tonnes within the period under review in 2024 as against 18,243,644 metric tonnes handled in the first quarter of 2023, showing an increase an increase of 16.1 per cent.
“Inward cargo traffic reached 13,563,173 metric tonnes, representing 10.5 per cent of the total cargo throughput in 2023, while outward cargo traffic was 7,623,175 metric tonnes, representing 27.7 per cent of the total cargo traffic,” the document explained.
It stated that performance indicators for the period showed some positive trends, despite the decrease in ship traffic as the average turn-around time for vessels improved to 4.6 days from 5.1 days in 2023.
This improvement, according to the data, is partly attributed to the impact of the Lekki Deep Seaport, which achieved an average turn-around time of just one day, showcasing its efficiency.
The berth occupancy rate averaged 29.8 per cent in the first quarter of 2024, a decrease from 34.5 per cent in 2023.
The lower berth occupancy rate indicates reduced congestion at the ports, which may contribute to improved turn-around times and overall efficiency.
“The increase in gross register tonnage despite the drop in the number of vessel calls revealed the berthing of bigger vessels especially, at the Lekki Deep Seaport where the average GRT of vessels is 3, 801, 191.
“This further gives credibility to the importance of a deep sea to Nigeria’s maritime or port development. Therefore, the collective efforts of all the stakeholders are required to ensure that Lekki Deep Seaport does not suffer the fate of Apapa for ease of cargo evacuation,” the document concluded.
Reacting to the development, a chieftain of the Association of Nigerian Licensed Customs Agents, Mr Kayode Farinto, said that the fluctuating exchange rate is killing vehicle importation.
“It is the fluctuating exchange rate that is killing the business. And if you bring in older vehicles now, you are expected to pay higher duty and the exchange rate continues to go up daily and nothing has been done to address that,” Farinto said.
According to him, except the government pegs the exchange rate for cargo clearance to like N1000/$ and increases legitimate vehicles allowed to come in from 12 years to 15 years, “that is when you would see improvement.”
Farinto added that smugglers would continue to bring in the vehicles through unapproved routes if these challenges were not addressed.
The Chairman of the Ports & Terminal Multipurpose Chapter of the National Council of Managing Directors of Licensed Customs Agents, Mr. Abayomi Duyile, blamed levies and duties slammed on imported vehicles as the reason for the decline.
“It has to do with the levy introduced, the cost is too much. For example, if you have a vehicle of 15 or 20 years, you are going to pay the duty as if the vehicle is 10 years old. So it is because of the cost. When you bring them in, how do you sell?” he asked.
