The importation of vehicles into Nigeria experienced a significant drop, plummeting by 60.8% from 28,024 units in the first quarter of 2023 to just 10,991 units in the same period of 2024, according to a report by the Nigerian Ports Authority (NPA).
According to the Punch, this contained in a document titled “Nigerian Ports Authority: Ports Performance Report January to March 2024.”
The report also highlighted a decline in ship visits to Nigeria’s ports. In the first quarter of 2024, 251 ships docked, representing a 4.3% decrease from the 275 ships that arrived during the same period in 2023.
The document noted that this reduction could be due to several factors, including changes in global shipping routes, adjustments in shipping line strategies, and the impact of economic policies affecting maritime trade.
Despite the decline in ship traffic, the total cargo throughput, excluding crude oil, showed an increase. In the first quarter of 2024, the total cargo volume reached 21,186,348 metric tonnes, up 16.1% from the 18,243,644 metric tonnes handled in the first quarter of 2023.
Inward cargo traffic was recorded at 13,563,173 metric tonnes, while outward cargo traffic was 7,623,175 metric tonnes.
The report indicated some positive trends in port performance. The average turn-around time for vessels improved to 4.6 days from 5.1 days in 2023, partly attributed to the efficiency of the Lekki Deep Seaport, which boasted an average turn-around time of just one day. The berth occupancy rate averaged 29.8% in the first quarter of 2024, a decrease from 34.5% in 2023, indicating reduced congestion at the ports.
The document emphasized the significance of deep-sea ports, noting that the increase in gross register tonnage, despite fewer vessel calls, revealed the berthing of larger vessels, particularly at the Lekki Deep Seaport. The average GRT of vessels at this port was 3,801,191, underscoring its importance to Nigeria’s maritime development.
Reacting to the findings, Kayode Farinto, a chieftain of the Association of Nigerian Licensed Customs Agents, attributed the decline in vehicle importation to fluctuating exchange rates. He argued that the unstable exchange rate is detrimental to the business, with higher duties imposed on older vehicles.
Farinto suggested that pegging the exchange rate for cargo clearance at N1000/$ and allowing the importation of vehicles up to 15 years old, instead of the current 12 years, could improve the situation.
He also warned that without addressing these challenges, smugglers would continue to exploit unapproved routes to bring in vehicles.
Abayomi Duyile, Chairman of the Ports & Terminal Multipurpose Chapter of the National Council of Managing Directors of Licensed Customs Agents, pointed to the high levies and duties on imported vehicles as the main reason for the decline. He noted that the costs associated with importing older vehicles are prohibitive, making it difficult for importers to sell these vehicles profitably.
The NPA report concluded by emphasizing the need for collective efforts from all stakeholders to ensure the Lekki Deep Seaport remains efficient and does not suffer the same fate as the congested Apapa port.