Imported vehicles into Nigeria decline over new naira trend

• During the initial half of this year, H1'24, there was a decrease in the quantity of cars imported into the country
• This illustrates the impact of the naira's decline and the general slowdown in the economy
• There were 251 ships calling at the nation's seaports in H1'24 compared to 275 in H1'23, a 4.3% YoY decline

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

In the first half of this year, H1'24, the number of automobiles imported into the nation dropped precipitously by 60.4% year on year to 10,991, indicating the effects of the depreciating naira and the overall economic slowdown.

In the first half of the year, vehicle Traffic shows a total 10,991 units of vehicles was handled. Photo Credit: Krisanapong detraphiphat
Source: Getty Images

This was mentioned in the report of the Nigerian Port Consultative Council's, or NPCC, recently ended quarterly meeting.

The report stated,

“Vehicle Traffic shows a total 10,991 units of vehicles was handled during the period under review, indicating a drop of 60.8 per cent from 28,024 units in 2023.”

The decline came at a time when the CBN recently issued a guideline urging the Nigeria Customs Service to apply the closing foreign exchange rate in the official window for import duty calculations in response to concerns regarding uneven import duty assessment levies.

In line with this pattern, the Vanguard reported that the number of ships calling at the country's seaports decreased by 4.3% YoY, from 275 in H1'23 to 251 in H1'24.

The gross tonnage of ships increased 6.9% to 32.614 million metric tons in H1'24 from 30,504, 276 in H1'23, despite the decline in vessel calls.

The report added,

“The cargo throughput, excluding crude oil, stood at 21.186 million metric tons against 18.234 million metric tons in 2023 indicating an increase of 16.1 per cent.“Inward cargo traffic reached 13.563 million metric tons representing a 10.5 of cargo throughput in 2023. Outward cargo traffic was 7.6234 million metric tons, representing 27.7 per cent.

Between January and June of this year, 398,447 containers were handled, which is 2.3 percent more than the 389,303 Twenty Foot Equivalent Units (TEUs) handled in 2023.

“A further analysis of container traffic revealed that import containers accounted for 3.4 per cent with 198,415 TEUs while export container traffic stood at 195,106 TEUs representing a decrease of 1.2 percent of total container traffic.“A breakdown of export container traffic revealed that empty containers accounted for about 36.3 per cent of total export container traffic. The average turn-around time of vessels was 4.6 days, compared with 5.1 days in 2023. The significant improvement in average turn-around time for vessels was brought about by the impact of the Lekki Deep Sea Port which achieved an average turn-around of only one day.“The increase in Gross Registered Tonnage, GRT, despite the drop in the number of vessel calls revealed the berthing of bigger vessels, especially at Lekki Port where the average GRT of vessels is 3,801,191. This further gives credibility to the importance of a deep seaport to the Nigerian maritime or port development.“Therefore, the collective efforts of all stakeholders are required to ensure that Lekki Deep Seaport does not suffer the same fate as Apapa for ease of cargo evacuation.”

CBN updates customs exchange rate

Legit.ng reported that the Central Bank of Nigeria (CBN) has introduced a new exchange rate for calculating customs import duties at the nation’s ports and airports.

Customs duties are taxes and levies imposed on imported goods.

The duties are paid through a commercial bank to the Nigeria Customs Service, which collects them on behalf of the federal government.

Source: Legit.ng