Many importers have started choosing to clear their imported items at other ports in West Africa such as Port at Tema in Ghana, Port of Lome in Togo and Port of Cotonou in Benin Republic.
The decision to stop using Nigerian seaports was due to the constant increase in cargo clearance exchange rates by the Central Bank of Nigeria (CBN).
Also, Importation into the country has declined by 65% due to a drop in business activities according to clearing agents.
Recall that on June 24, 2023, the CBN adjusted the exchange rate from N422.30/$1 to N589/$1. On July 6, 2023, it was further adjusted to N770.88/$1. Later, on November 14, 2023, it was adjusted to N783.174/$1, and on December 7, 2023, to N951.941/$1. On Friday, 2nd February 2024, the exchange rate was N1,356.883/$1, but it was changed to N1,413.62/$1 on Saturday, 3rd February 2024. This was a double adjustment within a day.
However, confirming the development, Akinlosotu said Importers are leaving the country, and the cargoes will be smuggled through the nation’s porous borders.
He stated that the abandonment of Nigerian ports was basically because of scarcity and hike in Customs foreign exchange rate.
“If these importers divert their cargoes to neighbouring ports, we all know that 80 per cent of them will end up in the Nigerian market either through smuggling or any other means of shipping. The implication is that it is the government that will lose at the end,” he told our Correspondent.
Also, The National President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, referred to it as ‘importers Japa’.
Amiwero argued that the floating exchange rate is responsible for the crisis the country is currently facing. He mentioned that sourcing for forex is another big problem attributing it to ‘importers’ Japa’.
“The subsidy paid on fuel by the govt. is what takes care of the common man, the hairdressers, the transport system, the farmer and all the rest. So, you remove subsidies, the price of diesel goes up and manufacturers are closing shops because they cannot run diesel and there is no constant power supply.
“For importers to move out of the country to go and look for solace is terribly disastrous and the implication is huge. That means we cannot fund our imports and so many of our things. We are crashing down completely and people are moving out. As they are moving out, they are moving their companies out of the country,” he said
He said a lot of people have been ravaged by poverty, some of them cannot eat and they have gone down below poverty level.
“You don’t have a floating exchange rate in a country that is fragile. There must be stability so that people can consistently predict their importation and have a transparent view about what is coming. Many people are abandoning their cargoes at the port because of the exchange rate. Their duty moves from N1.2 million to N2.5 million. Where do they get the extra money from? Government should look at it, the predictability in transaction is very important,” he explained.
Caption: Nigeria Port
Image source: https://nigerianports.gov.ng/ports/