The Nigerian Ports Authority (NPA) has announced a significant drop in vehicle imports, with figures falling from 28,024 units in Q1 2023 to just 10,991 units in Q1 2024, marking a 60.8% decrease.
According to the Ports Performance Report obtained by The PUNCH, the country’s ports handled 251 ships in the first quarter of 2024. This is a 4.3% reduction compared to the 275 ships recorded in the same period of 2023.
“Vehicle importation dropped by 60.8 percent from 28,024 units in the first quarter of 2023 to just 10,991 units in 2024,” the report stated.
The report also highlighted a decline in total cargo volumes, indicating a potential reduction in trade activities that may reflect economic challenges or shifts in import-export dynamics.
Several factors could account for the 4.3% decrease in ship visits, including changes in global shipping routes, adjustments in shipping line strategies, and the impact of economic policies on maritime trade.
Despite these challenges, there was a positive trend in cargo traffic, excluding crude oil. 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 percent of the total cargo throughput in 2023, while outward cargo traffic was 7,623,175 metric tonnes, representing 27.7 percent of the total cargo traffic,” the report elaborated.
Performance indicators for the period showed improvements despite the reduction in ship traffic. The average turn-around time for vessels improved to 4.6 days from 5.1 days in 2023, partly due to the efficiency of the Lekki Deep Seaport, which recorded an 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 decrease suggests reduced port congestion, likely contributing 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 underscores the importance of deep-sea ports to Nigeria’s maritime development. Therefore, the collective efforts of all stakeholders are required to ensure that Lekki Deep Seaport does not suffer the fate of Apapa for ease of cargo evacuation,” the report concluded.
Responding to these developments, Mr. Kayode Farinto, a chieftain of the Association of Nigerian Licensed Customs Agents, attributed the decline in vehicle imports to the fluctuating exchange rate.
“The fluctuating exchange rate is killing the business. If you bring in older vehicles now, you are expected to pay higher duty, and the exchange rate continues to rise daily with no resolution in sight,” Farinto said. He suggested that pegging the exchange rate for cargo clearance at N1000/$ and allowing the importation of vehicles up to 15 years old could lead to improvement.
Mr. Abayomi Duyile, Chairman of the Ports & Terminal Multipurpose Chapter of the National Council of Managing Directors of Licensed Customs Agents, blamed high levies and duties on imported vehicles for the decline. “The levy introduced is too high. For example, if you have a vehicle of 15 or 20 years, you pay the duty as if the vehicle is 10 years old. It is because of the cost. When you bring them in, how do you sell?” he questioned.
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