Let's get to the point for today: a forex scarcity is limiting import volume, and Nigeria will fall short of its cargo projections.
Importers and licensed agents, in particular, have expressed concern that a scarcity of foreign exchange (FOREX) is restricting the flow of products entering the country.
They also stated that, in view of the naira's continuous devaluation, the Nigeria Customs Service (NCS) intends to boost the present exchange rate for cargo imports from N381/$ to N410/$.
According to one operator who spoke to The Guardian, with FOREX scarcity hitting harder and a forecast exchange rate rise, Nigeria is anticipated to experience a reduction in import volume this year as vessels are routed to neighboring countries.
According to Muhammed Mojeed, Chairman of the Tincan Port branch of the Association of Nigeria Licensed Customs Agents of Nigeria (ANLCA), FOREX scarcity has limited products entering the nation.
He added that the number of containers leaving the port has been reduced from 400 to as low as 100 each day due to the high exchange rate and lack of access to foreign money.
“ If you walk into any port right now, you'll discover that a terminal that regularly dumps 400 containers for examination every day is suddenly only dumping 100 containers owing to the high exchange rate. ”On the black market, it is around N501 to one dollar. As a result, importers have found it difficult to conduct business. Furthermore, as a result of a scarcity of raw materials, numerous industries are already functioning at half capacity He moaned.
According to Mojeed, the NCS is considering raising its exchange rate bench value from N381/$ to N410/$. He encouraged the NCS to halt the proposal since inflation is already too high, and that implementing the new exchange rate will have an impact on imports.
Hadiza Bala-Usman, Managing Director of the Nigerian Ports Authority (NPA), has raised concern over the country's cargo throughput.
She stated that the volume of cargo handled at seaports decreased by 2.24 percent to 78.4 million metric tons in 2020 from 80.2 million metric tons in 2019.
Also speaking, Jonathan Nicol, President of the Shippers Association of Lagos State (SALS), stated that cargo volume has already decreased by 35% as a consequence of stifling economic rules, which have caused investors to move their shipments to the Republic of Benin, Togo, and Ghana.
With the current issues, Nicol believes Nigerians should brace themselves for tougher economic conditions in the near future, as the Gross Domestic Product (GDP) would fall. The issues, he claims, are jeopardizing the country's industrial revolution agenda.
He anticipated that due to a scarcity of raw materials, more industries will collapse, resulting in even more job losses.
Furthermore, Frank Ogunojemite, National President of the African Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), claimed that a high currency rate will inevitably lead to inflation and, as a consequence, non-economic growth in the country.
