The Nigerian Ports Authority has reported a significant decline in vehicle imports into Nigeria, dropping from 28,024 units in Q1 2023 to just 10,991 units in Q1 2024, marking a 60.8% reduction.
The latest Ports Performance Report, covering January to March 2024 and obtained by The PUNCH, also reveals that the country’s ports hosted 251 ships in the first quarter of 2024.
This figure represents a 4.3% decrease compared to the 275 ships that docked in the same period of 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.
The report also highlighted a decline in total cargo volumes during the period, indicating a reduction in trade activities that may reflect economic challenges or shifts in the import-export dynamics.
The 4.3% drop in ship visits could be due to several factors, “including changes in global shipping routes, adjustments in shipping line strategies, or the impact of economic policies on maritime trade.”
On a positive note, cargo traffic saw an increase. Excluding crude oil, the total cargo throughput reached 21,186,348 metric tonnes in Q1 2024, up from 18,243,644 metric tonnes in the same period of 2023, representing a 16.1% growth.
“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.
The performance indicators for the period revealed some positive developments despite the reduction in ship traffic. Notably, the average turn-around time for vessels improved to 4.6 days from 5.1 days in 2023.
This enhancement is partly due to the efficiency of the Lekki Deep Seaport, which recorded an impressive average turn-around time of just one day.
Additionally, the berth occupancy rate averaged 29.8% in Q1 2024, down from 34.5% in 2023. This lower rate suggests decreased port congestion, which likely contributes to the improved turn-around times and overall operational 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.
