High Customs Duties Force Importers to Divert Cargoes Away from Nigerian Ports

Many ports across Nigeria are experiencing a significant decline in activity due to the ongoing Forex crisis, making the importation business prohibitively expensive, according to investigations by Saturday Tribune.

Customs brokers and other port users are now threatening to disrupt port activities, citing the frequent adjustments in the exchange rate for cargo clearance as a primary concern.

Mr. Frank Ogunojemite, the National President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), urged freight forwarders to collaborate with civil society groups, the Nigeria Labour Congress (NLC), and trade unions to address the economic challenges faced by the masses.

Expressing dissatisfaction, Ogunojemite blamed the Ministry of Finance and the Central Bank of Nigeria (CBN) for the free fall of the naira, emphasizing the hardships faced by Nigerians. He criticized the continuous upward revision of Customs duty exchange rates, attributing it to economic mismanagement.

Frontline clearing agent, Mr. Chukwudi Onofile, accused the CBN of running the Nigerian economy like a Banana Republic, asserting that the steep increase in import duty for cargo clearance is detrimental to import businesses. He warned of a potential loss of jobs and economic decline if the government fails to address the situation.

President of the National Council of Managing Director of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, highlighted the negative impact on people being pushed into poverty due to the lack of stability in the foreign exchange regime. He called for a more predictable transaction environment.

Former National President of the National Association of Government Approved Freight Forwarders (NAGAFF), Mr. Eugene Nweke, revealed that many importers are on the run due to challenges in meeting obligations to Chinese creditors, stemming from the unpredictable nature of Nigeria’s foreign exchange.

A check indicated a nearly quadrupled cost for clearing vehicles from Apapa Port. For instance, clearing a 2019 Toyota RAV4 now costs N9,570,000, compared to N2,350,000 for a 2008 Lexus ES350.