The crisis currently facing the Nigerian foreign exchange market has influenced importation, as recent data has shown cargo imports dropped by 65% in the third and fourth quarters of 2023.
Stakeholders in the Nigerian import industry have pointed out some key indicators that have led to the steady decline in imports which include the high exchange rate which has also affected customs duty; and the difficulty faced by importers in accessing FX at the official window, among others.
The development has also led to the streamlining of port operations by terminal managers.
According to Ascanio Russo, the Managing Director of Grimaldi Nigeria, operators of Ports & Terminal Multiservices Ltd, vehicle importation has drastically reduced by about 60 to 70%.
Confirming the development, the coordinator of the 100 Percent Compliant Team of the National Association of Government Approved Freight Forwarders (NAGAFF), Ibrahim Tanko revealed that over 9,000 vehicles have been abandoned in the ports.
Also speaking, Dr Kayode Farinto, a former acting president of the Association of Nigerian Licensed Customs Agents (ANLCA), confirmed the drop in general imports by 65%. He further predicted the figures may get worse before the end of the year.
Farinto blamed the development on the volatility of the exchange rate but welcomed the removal of restrictions placed on 43 items by the Central Bank of Nigeria (CBN) adding that the development will boost imports.
The drop in cargo imports has also had a devastating effect on the Nigerian Customs Service (NCS) as the Tin-Can Island Command of the body has reported failure in meeting its targeted revenue for the period.
This comes amid an upward tariff adjustment by the service on imports by over 82.3% due to the adjustments in the exchange rate for calculating import duties.
Data on revenue collected by the service shows that the NCS has collected about 7.1% less revenue than it did in 2022.
From the data, revenue collected by the NCS in the first half of the year H1, 2023 stood at ₦1.3 trillion indicating a 7.1% shortfall from a total of ₦1.4 trillion collected in the same period of 2022.