Importation into the country during the yuletide is expected to drop as cargo through put into the nation’s seaports drops by 44 per cent, LEADERSHIP can report.
The drop was attributed to the depreciation of naira that has made foreign currency, especially the United States dollar to go up by over 100 per cent.
LEADERSHIP gathered that from September 2023 to September 2024 the Nigerian Naira depreciated by 52.92 per cent from N905/$1 in December, 27th, 2023 to N1,666, November 17th, 2024.
The depreciation of naira against the U.S dollar, however, made cargo clearance so high and importation unattractive to importers.
Confirming the drop in cargo throughput, the Customs Area Controller (CAC), Tin-Can Island Port Command, Compt. Dera Nnadi, said that the command noticed that cargo Importation into the country has dropped.
“As at last year, 2023, 9,000 containers were imported into Nigeria through the Tin-Can Island Port but as at November, 2024 only 5,000 containers have been imported into the country.”
The drop in container import showed 44 per cent drop in cargo Importation through the Tin Can Island Command of the Nigeria Customs Service (NCS).
Speaking, managing director of Wealthy Honey Investment, a clearing and forwarding company, Dr Kayode Farinto, said in the last few months, there has been a significant drop in the volume of cargoes in the country over the non-stability of the exchange rate.
“We have bulk cargo, containerised goods and vehicles. The level of import on vehicles has dropped to about 55 percent, level of import on containers has dropped to about 30 per cent, and on bulk cargo it is about 20 per cent. So we are not really winning the war.
“The situation has not been very rosy for us in the industry particularly the freight forwarders. We are not faring well. We have some people who have actually left the job, some still remain thinking tomorrow will be a better day and we have some who have died. I can tell you that we lost a lot of members this year.
“My prediction is that the volume of imports will continue to nosedive if nothing is done. I’m also an importer. If you want to appreciate what I’m saying, go to the manufacturers’ association and ask them what they have imported in the last few months.”
The only solution is for us to have a predictive exchange rate for Customs purposes alone. It’s not too much to ask. The exchange rate has been fluctuating, currently, N1,666 as at Sunday. A cent is important to every business man because if you’re using a bank loan you have to put all these into consideration.
“We had a week where we had more than five exchange rates. That is not too good for our economy. We have three levels of importation,” the former acting president, Association of Nigerian Licensed Customs Agents (ANLCA), said.
He noted that the situation has also been difficult for freight forwarders, with many losing their jobs and some even losing their lives.
“Customs must negotiate with the CBN, draw them to the minister of Finance, sit on a round table and involve us. I have suggested a tripartite meeting between CBN, Customs and Ministry of Finance or CBN, Customs and freight forwarders and we will be able to tell the CBN that what they are doing is not helping the economy and if we continue like this, the economy will just go in shambles, perhaps they will listen to us but up till now nothing has been done about it.”
Also speaking, an importer, Dennis Omojeh, said the volume of cargo into the nation’s ports has dropped drastically compared to last year.
According to him, cargo throughput has been dropping since 2023 and by 2024, it has dropped by over 40 per cent.
“What we are experiencing now is a very serious challenge. We have written to the federal government to do something about this but it seems nobody is listening to us. We find it difficult to bring in consignments due to the high exchange rate. Importers are dying while some are leaving for neighbouring countries.
“Some importers have diverted their cargoes to the neighbouring countries, especially those cargoes going to landlocked countries.
“Ports of Tema in Ghana and Cotonou in Benin Republic are now receiving Nigerian bound cargoes. Importers now preferred Togo and Benin as their preferred destination for cargo Importation while Nigeria is losing out big time.
“Some of us who manage to bring in cargo and clear at the seaports here are just being patriotic. The volume of trade has dropped drastically.
“The factories are not running at full capacity due to so many factors such as energy diesel costs and the exchange rates. Even sourcing the foreign exchange, So, it’s affecting a whole lot,” he lamented.
He said if the trend continues, Nigerians will experience a lull Christmas as the cost of goods would be high coupled with inflation.
