ABUJA (Sundiata Post) – The frequent hikes of the import duty rate may have triggered a major crisis at the Nigerian ports as an increasing number of Nigerian importers are routing their cargoes to Tema, Ghana; Lome, Togo and Cotonou, the Republic of Benin.
The trend has caused a substantial decrease in cargo importation and business activities at Nigerian seaports. Whereas the extent of impact is yet to be known, the House of Representatives has pegged the reduction at 65 per cent.
The Lagos ports, which used to be a beehive of activities, are gradually becoming ghost towns. Recent visits show that many agents and ‘hustlers’ have abandoned the complexes as activities have reduced drastically.
There are fears that the situation, if left unaddressed, could have significant impacts on revenue generation. Already, the situation is taking a toll on the turnover of the Nigeria Customs Services (NCS) – an agency that is struggling to meet its N5.1 trillion target.
The Customs exchange rate hikes have forced many importers to abandon their goods in the ports, with sources saying about 50 per cent of the imported cargoes have been abandoned due to exorbitant charges.
Last year’s foreign exchange (FX) market liberalisation has caused a significant rise in the exchange rate with NCS also adjusting its index rate to align with the spot rate. The import duty benchmark stood at N1,605.82/$, almost 70 per cent increase from the early February rate.
The multiple hikes seen in the past 20 days may have forced Nigerian importers and investors to dump the country’s ports for facilities in Ghana, Togo and the Republic of Benin.
Specifically, it was gathered that Nigerian investors are fast moving to the ports of Tema in Ghana; Lome in Togo and Cotonou in Benin, leading to 65 per cent decrease in cargo importation and business activities at the Nigerian seaports.
Consequently, The Guardian gathered that Nigerian importers are fast establishing a business base in neighbouring countries where they source dollars at affordable rates to clear their cargoes.
Also, the importers claimed the markets in the neighbouring countries are lucrative as they recover their capitals with huge profits within a short time.
The Guardian also learnt that Nigerian traders travel to neighbouring countries to purchase the goods and smuggle them into the country. Barely a week after the House of Representatives urged the CBN to reduce and maintain the system exchange rate for customs and excise duty at N951.94/$1, the exchange rate was raised to N1,605.82/$.
The apex bank within the space of three weeks increased the Customs duty exchange rate nine times. Specifically, the apex bank on February 2 adjusted the exchange rate to N1, 356.883/$, it raised the rate on February 3 to N1, 413.62/$ and later increased it on February 9 to N1, 417.635/$ and to N1,444.56/$ by February 11.
Again, on February 14, the CBN adjusted the exchange rate to N1,481.982/$ and on February 15, it increased to N1,515.092/$, which it was later reduced to N1,472.756/$ on February 16 and increased to N1,537.073/$ on February 18 and now N1,605.82/$ February 21, 2024.
