A report by the Nigerian Ports Authority reveals that the number of vehicles imported into Nigeria decreased drastically from 28,024 units in the first quarter of 2023 to just 10,991 units in the corresponding quarter of 2024, marking a 60.8% drop.
The document, titled ‘Nigerian Ports Authority: Ports Performance Report January to March 2024,’ observed by NewsNow on Monday, also disclosed that Nigerian ports received 251 ships during the first quarter of 2024.
This figure indicates a 4.3% decline from the 275 ships that docked at the nation’s seaports in the same period of 2023.
The report highlighted, “Vehicles importation plummeted by 60.8%, from 28,024 units in the first quarter of 2023 to only 10,991 units in 2024.”
It also noted a general decrease in total cargo volumes during the period, signaling a downturn in trade activities and suggesting possible economic challenges or changes in import-export dynamics.
The report suggested that the 4.3% decrease in ship visits could be due to various factors such as “shifts in global shipping routes, alterations in shipping company strategies, or the effects of economic policies impacting maritime trade.”
Regarding cargo traffic, the total cargo throughput, excluding crude oil, climbed to 21,186,348 metric tonnes in the reviewed period of 2024 compared to 18,243,644 metric tonnes handled in the first quarter of 2023, a rise of 16.1%.
“Inward cargo traffic accounted for 13,563,173 metric tonnes, constituting 10.5% of the total cargo throughput in 2023, while outward cargo traffic stood at 7,623,175 metric tonnes, representing 27.7% of the total cargo traffic,” the document clarified.
Performance indicators for the period displayed positive trends despite the decline in ship traffic, with the average turnaround time for vessels improving to 4.6 days from 5.1 days in 2023.
This enhancement, as per the data, partly resulted from the influence of the Lekki Deep Seaport, which achieved an impressive average turnaround time of just one day, showcasing its efficiency.
The average berth occupancy rate was at 29.8% in the first quarter of 2024, down from 34.5% in 2023.
The reduced berth occupancy rate signifies decreased congestion at the ports, potentially contributing to enhanced turnaround times and overall efficiency.
“The rise in gross register tonnage despite the reduction in vessel calls highlighted the berthing of larger vessels, especially at the Lekki Deep Seaport, where the average GRT of vessels is 3,801,191.
“This further underscores the importance of a deep-sea port to Nigeria’s maritime and port development. Hence, the collaborative efforts of all stakeholders are essential to prevent the fate suffered by Apapa in terms of cargo clearance ease,” the document concluded.
In response to the situation, a leading member of the Association of Nigerian Licensed Customs Agents, Mr. Kayode Farinto, attributed the decline in vehicle importation to the fluctuating exchange rate.
“The fluctuating exchange rate is greatly impacting business. Duty costs for older vehicles have surged, coupled with the daily rising exchange rate, and no steps have been taken to address this,” Farinto expressed.
He suggested that unless the government stabilizes the exchange rate for cargo clearance at around N1000/$ and extends the allowable age of imported vehicles from 12 to 15 years, there would be no improvement.
Farinto cautioned that unless these challenges are tackled, smugglers will persist in bringing in vehicles through unauthorized routes.
Mr. Abayomi Duyile, Chairman of the Ports & Terminal Multipurpose Chapter of the National Council of Managing Directors of Licensed Customs Agents, blamed the downturn on the levies and duties imposed on imported vehicles.
“The introduction of excessive levies has escalated costs. For instance, the duty is charged as if a vehicle is 10 years old even if it’s 15 or 20 years. This cost issue poses a challenge in selling them once imported,” he remarked.