•Forex scarcity weakens purchasing power of importers
By Steve Agbota
Port activities and cargo throughput have recorded an all-time low in the first six weeks of 2023 as imports are estimated to have declined by over 30 per cent at Nigerian seaports.
The Chairman of Seaports Terminal Operators Association of Nigeria (STOAN), Princess Vicky Haastrup, revealed this during a recent breakfast meeting organised by the Nigerian Chamber of Shipping (NCS).
Haastrup, who was one of the panelists at the event themed: “Nigeria’s 2023 Economic Outlook: Special Focus on Maritime Shipping Industry,” said that the drop in port activities have been attributed to several factors, including the upcoming Presidential elections, insecurity and uncertainties around the country.
She posited that foreign exchange remains a major setback as the purchasing power of importers had weakened further with $/800 recorded in the parrallel market last week.
According to her, the growing economic hardship coupled with government fiscal policies on certain imports like vehicles will also define the cargo volumes to be recorded at ports throughout the year.
“This year, it is going to be very gloomy. We have a downward turn of about 30 per cent cargoes and upto 40 per cent for general cargoes. The first quarter and second quarter in 2023 will see lower importation until after the elections. Naira devaluation is also a major issue with N800/$ in the parrallel market. Nigeria is a cash-based economy and right now there isn’t enough cash.”
However, she expressed worry over the Federal Government’s plan to further devalue the naira even as she said that the gridlock and port access obstacles have affected terminal operations and Nigeria’s competitiveness in the region over the years.
“Gridlock really affects our business and makes the port environment unconducive for business. We have serious challenges in getting trucks to evacuate cargoes. ENL has an average of 300 trucks daily to evacuate cargoes.
“For the past 8 years, it has been very challenging. This affects the way businesses are done and delays the turnaround time of ships. Each ship loses money in delays caused by the gridlock,” she explained.