AGS NEWS – The importation of vehicles into Nigeria fell sharply from 28,024 units in the first quarter of 2023 to 10,991 units in the same period of 2024, marking a 60.8% decrease, according to a Nigerian Ports Authority report.

The report, titled ‘Nigerian Ports Authority: Ports Performance Report January to March 2024’ and seen by on Monday, also revealed that Nigeria’s ports received 251 ships in the first quarter of 2024, a 4.3% drop from the 275 ships recorded in the same period in 2023.

“Vehicle importation dropped by 60.8% from 28,024 units in the first quarter of 2023 to just 10,991 units in 2024,” the report stated.

ALSO READ: Stakeholders split on proposed import ban for used vehicles

The report also indicated a decline in total cargo volumes, suggesting a contraction in trade activities and potential economic challenges or shifts in the import-export balance.

The 4.3% reduction in ship visits could be due to factors such as “changes in global shipping routes, adjustments in shipping line strategies, or economic policies affecting maritime trade.”

Despite the decrease in ship traffic, total cargo throughput excluding crude oil increased by 16.1%, reaching 21,186,348 metric tonnes in the first quarter of 2024 compared to 18,243,644 metric tonnes in the same period of 2023.

“Inward cargo traffic reached 13,563,173 metric tonnes, representing 10.5% of the total cargo throughput in 2023, while outward cargo traffic was 7,623,175 metric tonnes, representing 27.7% of the total cargo traffic,” the report explained.

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 achieved an average turn-around time of just one day.

The berth occupancy rate averaged 29.8% in the first quarter of 2024, down from 34.5% in 2023, indicating reduced congestion at the ports.

“The increase in gross register tonnage despite the drop in vessel calls revealed the berthing of bigger vessels, especially at the Lekki Deep Seaport where the average GRT of vessels is 3,801,191,” the report noted, emphasizing the importance of deep sea ports to Nigeria’s maritime development.

ALSO READ: UK economy sees unexpected growth in May – Report

Kayode Farinto, a chieftain of the Association of Nigerian Licensed Customs Agents, attributed the decline in vehicle importation to fluctuating exchange rates. “It is the fluctuating exchange rate that is killing the business,” he said, calling for the government to peg the exchange rate for cargo clearance and increase the age limit of legitimate vehicles allowed into the country.

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 for the decline. “It has to do with the levy introduced, the cost is too much,” he said, questioning how importers could sell older vehicles given the high duties.