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•Importers flee as 40ft container clearing cost hits N4.1m
By Steve Agbota
Nigeria’s land borders are grappling with a significant decline in trade as a result of a confluence of economic challenges.
Key stakeholders in the nation’s maritime sector have revealed that a combination of stringent government policies, a weakening naira and fluctuating exchange rates is driving importers away from doing business across these borders.
The deteriorating economic landscape, according to players on the border, has made cross-border trade increasingly expensive. To justify their position, they pointed to the exchange rate, revealing that 1,000 CFA francs, a relatively small amount, now costs a staggering N2,755 in Nigeria. Clearing a 40-foot container from Cotonou to Nigeria has become a financial burden, with costs soaring to a staggering N4.1 million. Clearing agents and importers alike are expressing deep concern over these developments.
The ongoing FX crisis, coupled with the broader economic downturn, is creating a climate of uncertainty and fear among potential investors. The Seme border, once a vibrant hub of trade, is now facing the brunt of this decline.
However, clearing agents and importers who spoke with Daily Sun lamented that businessmen are scared because of the FX crisis and coupled with the current economic situation in the country, chasing potential investors away from the land borders, especially the Seme border.
They argued that the effect of the 2019 border closure under former President Muhammadu Buhari’s regime is still hurting people who lost their goods, lives, and money.
Speaking with Daily Sun, an importer, Ezekiel Adedoyin, said that trade has dropped significantly at the border stations to about 70 percent due to high foreign exchange and a weak naira. He said importers are now avoiding land borders, especially the Seme border, because it is tough to import goods from Cotonou to the Seme border now.
He said that importers have started boycotting the borders, especially Seme, because of the constant depreciation of the naira against the CFA franc.
According to him, importers have started boycotting the borders, especially Seme, because of the constant depreciation of the naira against the CFA franc.
“Importers hardly patronize these areas now because after clearing and paying for everything, the importer would incur losses. This has made business activities drop, coupled with the exchange rate that is affecting our business in this area,” he added.
Also speaking with Daily Sun, a clearing agent operating at the Seme border, Ojinma Onyekachi, said the exchange rate is chasing importers away, saying nothing is really happening here.
“If not because of the exchange rate that is driving importers away, Seme would have been the best place any importer will work, but due to the high exchange rate, people are afraid, coupled with what happened to them before during the border closure. They are scared because they lost their goods, lives, and people who borrowed money. Buhari’s policy just made them waste the money. They are just picking their parts to see if they can recover from losses.
“Anybody saying the Seme border is booming is just blowing grammar. They just don’t come and see things here. Seme is a good place to work, but because of the exchange rate, nothing is happening in Seme,” he said.
A former chairman of the National Licensed Customs Agents (ANLCA), Seme border Chapter, Bisiriyu Lasisi Fanu, said government policy is the only thing disturbing trade at the land border.
“And government policy, according to them, they don’t want to know whether we do other clearing in Cotonou. As far as we do other extra clearing in Cotonou, the economy of Nigeria is not cared about because the border is just like Tin Can, Apapa, and Onne seaports.
“The same PAR we use to clear goods here is the same PAR we use in clearing goods from other areas, which is issued from the power ruling house in Abuja. The federal government finds it difficult for us to pay a different thing at the border since the same power ruling is so issuing duty payment that is not even typed for Seme, Tin Can, Onne, and Apapa.
“So it will be difficult. The other expenses we undergo in Cotonou are where the customers cannot afford because it will take into the whole clearing, especially in a foreign country, depends on the dollar exchange rate. When the dollar goes off, the CFA also goes off. For instance, if you want to use N1.500 million now to clear a 40ft container from Cotonou to the border minus transport cost, you are paying one million CFA. That one million CFA will give you N4.1 million.
“This amount will be other extra expenses for the importers who pass through Cotonou. So how will you want to pay such when you can through Lagos Port and you are not involved in extra clearing before coming to the border point. And that border point is Tin Can, Apapa, and KLT axis as the case maybe,” he explained.
