Amidst the persistent surge in Customs exchange rates for the clearance of imported goods at Nigerian seaports and airports, coupled with the foreign exchange instability in the country, local importers have begun diverting shipments away from Nigerian seaports to other West African ports such as the Port of Tema in Ghana, the Port of Lome in Togo, and the Port of Cotonou in Benin Republic.
The shift away from Nigerian seaports is a response to the frequent increases in the exchange rate for cargo clearance by the Central Bank of Nigeria (CBN). Importers and clearing agents highlight a 65% decline in importation into Nigeria, attributed to a drop in business activities.
Notably, between 60 to 80 containers are currently being processed daily for Customs examination, a significant decrease from the 200 to 250 containers processed daily in 2023.
The Central Bank of Nigeria (CBN) has adjusted the exchange rate multiple times, further exacerbating the challenges faced by importers. The exchange rate adjustments occurred on June 24, 2023 (N589/$1), July 6, 2023 (N770.88/$1), November 14, 2023 (N783.174/$1), December 7, 2023 (N951.941/$1), February 2, 2024 (N1,356.883/$1), and February 3, 2024 (N1,413.62/$1).
Clearing agents attribute the abandonment of Nigerian ports to the scarcity and increased Customs foreign exchange rates. The concern is that diverted cargoes, mostly intended for the Nigerian market, may re-enter through smuggling or alternative shipping methods, leading to potential revenue losses for the government.
Lucky Amiwero, the National President of the National Council of Managing Director of Licensed Customs Agents (NCMDLCA), expressed concerns over the floating exchange rate, citing it as a major contributor to the current crisis. He emphasized the need for exchange rate stability to allow for consistent importation predictions and transparent transaction practices.
The economic impact is evident, with potential consequences for businesses, manufacturers, and the overall stability of Nigeria’s economic landscape. The issue underscores the urgency for government intervention to address the challenges posed by the exchange rate fluctuations.