Importation into the nation’s seaports dropped down to 65 per cent in the last two weeks, due to instability of foreign exchange and devaluation of Naira, LEADERSHIP learnt.

Recall that the Tin-Can Island Command of the Nigeria Customs Service (NCS) has said, there is downturn In the cargo throughput at the nation’s seaports, thereby, making it difficult to meet its targeted revenue.

It was gathered that a dollar exchange for N1,200 in the black market and N848 in the Ithe Nigerian Foreign Exchange Market (NAFEM).

The naira has continued to weaken against the green back across all market segments since the Central Bank of Nigeria (CBN) announced the lifting of the ban on 43 items previously restricted from accessing foreign exchange (forex) from the investor’s and exporters’ (I&E) window now NAFEM.

Sources in the seaports have told our correspondent that berths in the Apapa and Tin-Can Island ports are empty, especially in terminals that are handling bulk cargoes. Also, truckers have complained about drop in cargo haulage due to the decrease in import at the two busiest ports in the country.

A truck owner, Yusuf Liadi, said haulage of cargo laden containers in the last one month has fallen to the lowest level. “The last four weeks have been very challenging for truck owners. For instance, I have not moved cargoes out of the port in the last two weeks,” he lamented.

However, in an exclusive chat with LEADERSHIP, the former acting president of the Association of Nigerian Licenced Customs Agents (ANLCA), Dr Kayode Farinto, said importation has dropped to 65 per cent.

According to him, it was due to the volatility of the exchange rate even as he said, removal of restrictions placed on 43 items by the Central Bank of Nigeria (CBN) will boost imports.

“Removing the restrictions on 43 items from accessing the forex market by the federal government is a welcome development and I do know that our import has dropped to 65 per cent in the last one or two weeks. But, lifting the restriction will encourage importers because placing prohibition on these items when they are not on import prohibition list was encouraging false declaration, corruption and adding to cost of cargo clearance.

“However, now that the importers know they can go abroad, bring these items and open Form M for it, then it’s an encouragement for the importers to do the right thing and I believe that will grow the nation’s economy as well,” he noted.

Farinto, however, predicted that import improvement based on the policy won’t be felt until the middle of December 2023 or first quarter of 2024.

To him, “it is a welcome development, it will grow the economy and increase the level of import into the country. It will take another 60 days to see the boost because import is not about going off the shelves to pick your import and we know a large chunk of our trade is to China and far East Asia so, before one can travel and come back, it will take another 60 days.

“It’s a welcome development that will boost the economy and increase the level of imports. We should expect an import boost between 1st and 2nd week of December and by the middle of January, 2024, the effect will be massive.”

Also speaking, the president, National Council of Managing Director of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, also corroborated that importation into the country through the nation’s seaports has dropped drastically.

Amiwero stated that no importer can import into the country at the current exchange rate of over N1,000 to a dollar.

According to him, due to the instability, they had to pay more to the Customs if there was a change in foreign exchange before the clearance of the cargo.

“Exchange rate is moving very fast upward and you know most imports are contractual. Most of these imports are supposed to be paid back at a specific time and when you bring them in and you realise that before the cargoes arrive the country, there is an increase.

“The challenge is that there is no stability and because of that a lot of people are no longer importing because of the floating exchange rate that is moving at a very high speed.

“Foreign exchange is a critical factor when a country is import dependent like Nigeria.

This is because Nigeria is not a manufacturing country as we import almost everything. We need to aid imports by giving export subsidies to survive.

“Exchange rate is one of the important factors affecting Importation because blaming Customs for low import is an act of ignorance. We cannot fault Customs because they have not increased anything they only moved with the exchange rate.

“I saw an agent protesting against Customs and I told them it’s not Customs fault but that of the economy. It’s the exchange rate and clearing agents must understand the dynamics of the economy. The exchange rate has a pivotal role to play, the exchange rate is not consistent, predictable and transparent. It is clumsy and shaky that importers have to stayed back to watch how things unfold.

The Central Bank of Nigeria (CBN) has a lot of work to do, to give confidence back to the system and ensure stability of the forex market. All the policies the government is turning out daily are not practical or halting the free fall of naira,” he lamented.

“Now, the economy is fragile, import dominated and a lot of the people are getting poorer as poverty rate and purchasing power are going up daily,” he told LEADERSHIP.

Amiwero, however, demanded removal of impediments against seamless facilitation of exports out of the country, saying only import can balance Nigeria’s trade. “The country must be able to look at export through the impediments. Impediments such as pricing, evaluation, packaging among others must be tackled.

“Government needs to remove obstacles to export. When the obstacles are removed, it will encourage export. Government should introduce a subsidy on export for people to see it as an alternative and reduce over reliance on import because if export is not moving and there are no backup plans there will be problems, as we are currently experiencing,” he stressed.

Source: https://leadership.ng/high-exchange-rate-cargo-import-drops-to-65-at-seaports/

If importation have reduce, why is the naira still freely falling against the dollar.

I know the lifting of the ban on some items will make the naira fall at the official window.

It has never been this worst

Ikaeniyan0:
If importation have reduce, why is the naira still freely falling against the dollar

The Naira is falling because Tinubu is clueless

Bobloco:


The Naira is falling because Tinubu is clueless

Well, issues like the one reported in this article will eventually lead to naira stabilizing and inflation reducing

Ikaeniyan0:
Well, issues like the one reported in this article will eventually lead to naira stabilizing and inflation reducing

Just like saying that high cost of fuel is good for the economy because our roads are free

Ikaeniyan0:
Well, issues like the one reported in this article will eventually lead to naira stabilizing and inflation reducing

🤡🤡🤡

Bobloco:


Just like saying that high cost of fuel is good for the economy because our roads are free

It's you thats making the claim, it's not me.

And when the naira start strengthening against the dollar, the price of a litre of petrol will also start falling.

What is the benefit of importation?

As long as exportation is not dropping, that is great news.

We need to begin looking inward to meet our needs, including technological hardware and their spares, not to forget refined petroleum.

Ikaeniyan0:
It's you thats making the claim, it's not me.

And when the naira start strengthening against the dollar, the price of a litre of petrol will also start falling.

But Tinubu is doing nothing to strengthen the Naira. His policies are making sure it is on a downward spiral

Bobloco:


But Tinubu is doing nothing to strengthen the Naira. His policies are making sure it is on a downward spiral

What do you mean by "Tinubu is doing nothing"?

Ikaeniyan0:
What do you mean he's doing nothing?

Have you not been following the news?

Mention one policy statement by Tinubu that strengthened the Naira since coming on board

Ikaeniyan0:
Well, issues like the one reported in this article will eventually lead to naira stabilizing and inflation reducing

Your method of reducing inflation is to reduce purchasing power? ... Oh I forgot Tinubu said it

StOla:
What is the benefit of importation?

As long as exportation is not dropping, that is great news.

We need to begin looking inward to meet our needs, including technoligical hardware and their spares, not to forget refined petroleum.

Nigerian importation was never the issue in fact we need to import more for things to be cheaper

The issue is we don't export enough

The imoprters should source for produts made in Nigeria and export. The same way they travel abroad to source for product to import to Nigeria.

Don't tell me Nigeria doesn't produce anything. Go to Aba alone and see how shoes, bags, belts are made in larger scales though they can request producers to improve the quality of their products then export to other African countries and as far as the Pacific countries. Don't forget Lagos and also Kano are also producing the same.

Open warehouses and shops in these countries to market and sell these products.

These process is tedious and demands strategic consistent marketing and advertising in those countries but the benefit supercedes the pains.

The same way Hyundai, Samsung, Toyota even Pep stores from South African go to other countries to advertise their products and make money for their countries.

The problem with importers, is the urge to make quick money without hard labor.

Mind you, there are other products prodced in Nigeria here. Adire, Aso Oke, Ankara, Innoson, Nord, Electric cables, Nigerian foods, plastic chairs, etc. You can add to the list.

Importers should upgrade and stop looking for fast money.

No hope here , and the right to protest has been killed during the endsar, Nigeria government and powerful individual committed genocide against her citizens during that endsar and unfortunately you do not expect justice from same people, it's that sad, now Nigeria are suffering and can't even protest because of fear 😨 of been killed and tribalism too

Bobloco:


Mention one policy statement by Tinubu that strengthen the Naira since coming on board

In the near future, the federal government will automate transactions in the entire foreign exchange market to tame wide arbitrage and punish naira speculators.

Wale Edun, Minister of Finance and coordinating minister of the Economy, mentioned this during the first-panel session at the 29th Nigeria Economic Summit (#NES29).

His comment came shortly after President Tinubu had told summiteers that he has taken steps to deal with liquidity in the fx market and made a commitment to sort out all backlog.

According to him, all dealings in the fx market, from the official to the money changers where huge arbitrage has consistently occurred, will be thoroughly monitored and offenders fished out and punished.

He also disclosed that the president signed two executive orders last week.

One of them is an executive order that allows forbearance for all the cash in the economy to come in and formally boost the money supply legally.

There’s another executive order that allows domestic issuance of foreign currency issues so that it will allow incentive to provide that foreign exchange for whatever source.

He said alongside this and part of a broader sort of review, there is a revamping of the foreign exchange market, which he said will be unfolded as time goes.

He admitted that Nigeria’s foreign exchange market is not functioning effectively due to illiquidity and that the government is prepared to do everything required to change the status quo.

“Foreign exchange market will simplified and reformed such that all legal and legitimate transactions will fall within the purview of the authorities and in the formal foreign exchange market. Anything outside that will be illegal, a criminal offence and will be punished,” Edun stated.

In his comment, Yemi Cardoso, Governor of the Central Bank of Nigeria (CBN) assured that the apex bank, going forward, will take its objective of price stability “very seriously indeed.”

He said the plan is to have a foreign market that is fit for purpose and works for everybody, which can be predictable and with no opacity.

“We are going to come out with an elegant document that will tell you the rules,” the governor assured.

https://businessday.ng/news/article/775395-naira/

Price will increase that mean more inflation. Rich people already storing the funds in a more stable currency.

This sharp fall of import will impact productivity and business activities.

By December many people will understand the damage tinubu is doing to Nigeria. And he seems not to care and not even addressing Nigerians.

Ikaeniyan0:
In the near future, the federal government will automate transactions in the entire foreign exchange market to tame wide arbitrage and punish naira speculators.

Wale Edun, Minister of Finance and coordinating minister of the Economy, mentioned this during the first-panel session at the 29th Nigeria Economic Summit (#NES29).

His comment came shortly after President Tinubu had told summiteers that he has taken steps to deal with liquidity in the fx market and made a commitment to sort out all backlog.

According to him, all dealings in the fx market, from the official to the money changers where huge arbitrage has consistently occurred, will be thoroughly monitored and offenders fished out and punished.

He also disclosed that the president signed two executive orders last week.

One of them is an executive order that allows forbearance for all the cash in the economy to come in and formally boost the money supply legally.

There’s another executive order that allows domestic issuance of foreign currency issues so that it will allow incentive to provide that foreign exchange for whatever source.

He said alongside this and part of a broader sort of review, there is a revamping of the foreign exchange market, which he said will be unfolded as time goes.

He admitted that Nigeria’s foreign exchange market is not functioning effectively due to illiquidity and that the government is prepared to do everything required to change the status quo.

“Foreign exchange market will simplified and reformed such that all legal and legitimate transactions will fall within the purview of the authorities and in the formal foreign exchange market. Anything outside that will be illegal, a criminal offence and will be punished,” Edun stated.

In his comment, Yemi Cardoso, Governor of the Central Bank of Nigeria (CBN) assured that the apex bank, going forward, will take its objective of price stability “very seriously indeed.”

He said the plan is to have a foreign market that is fit for purpose and works for everybody, which can be predictable and with no opacity.

“We are going to come out with an elegant document that will tell you the rules,” the governor assured.

https://businessday.ng/news/article/775395-naira/

Look at this one,in near future huh? Keep dreaming

Davicl:


Look at this one,in near future huh? Keep dreaming

Go through the full article

Cargoes takes 45 days to arrive and therefore can't change rate of arrival because of dollar in 2 weeks.

Importation into the nation’s seaports dropped down to 65 per cent in the last two weeks, due to instability of foreign exchange and devaluation of Naira...

mrvitalis:


Your method of reducing inflation is to reduce purchasing power? ... Oh I forgot Tinubu said it

People importing unnecessary things will keep their naira instead exchanging it to dollar and importing an unnecessary thing.

StOla:
What is the benefit of importation?

As long as exportation is not dropping, that is great news.

We need to begin looking inward to meet our needs, including technoligical hardware and their spares, not to forget refined petroleum.

God bless you my brother, the forex that Nigerians spent on importing Chinese textiles aka Ankara China, if that money is spent our textile industry, a lot of jobs will be created.
Let this country learn mass production of her goods and stop the nonsense mass importaions.
Nigerians should go and see what L'Oreal Paris did for France, Huawei did for China, Microsoft and Apple for America, and so on.
Businesses brings Forex into the country not the government.
Enough with the cry for dollars, whoever needs dollars to import hair extensions, intimacy gadgets and all kinds of trash, should generate theirs.
Only the productive sectors of the economy should be allowed to access Nigeria's forex.

forgiveness:
The imoprters should source for produts made in Nigeria and export. The same way they travel abroad to source for product to import to Nigeria.

Don't tell me Nigeria doesn't produce anything. Go to Aba alone and see how shoes, bags, belts are made in larger scales though they can request producers to improve the quality of their products then export to other African countries and as far as the Pacific countries. Don't forget Lagos and also Kano are also producing the same.

Open warehouses and shops in these countries to market and sell these products.

These process is tedious and demands strategic consistent marketing and advertising in those countries but the benefit supercedes the pains.

The same way Hyundai, Samsung, Toyota even Pep stores from South African go to other countries to advertise their products and make money for their countries.

The problem with importers, is the urge to make quick money without hard labor.

Mind you, there are other products prodced in Nigeria here. Adire, Aso Oke, Ankara, Innoson, Nord, Electric cables, Nigerian foods, plastic chairs, etc. You can add to the list.

Importers should upgrade and stop looking for fast money.

Typing……,,,,,, with Chinko made phone??

Ikaeniyan0:
People importing unnecessary things will keep their naira instead exchanging it to dollar and importing an unnecessary thing.

The problem with APC is instead of focusing on promoting export they are focusing on preventing import

That's so 1800s economics

The theory of comparative advantage rules the world

You think China can't farm corn and soy? But import it?
You think China can't farm meats? But import?

You think America can't build chips?

Lmaooo Una go learn

Obi was here giving you guys free knowledge no body took it seriously

mrvitalis:

The problem with APC is instead of focusing on promoting export they are focusing on preventing import

That's so 1800s economics

The theory of comparative advantage rules the world

You think China can't farm corn and soy? But import it?
You think China can't farm meats? But import?

You think America can't build chips?

Lmaooo Una go learn

Obi was here giving you guys free knowledge no body took it seriously

Did the Nigerian government ban importation?

Wonderful!!
Agbado economists now believe importation is evil.
This guys are fuçking clueless Zombies.
Just look at them up there condemning importation as if it's not a part of trade.
One wonders which schools these clowns attended.
Even secondary school economics should cure this cluelessness

7lives:


God bless you my brother, the forex that Nigerians spent on importing Chinese textiles aka Ankara China, if that money is spent our textile industry, a lot of jobs will be created.
Let this country learn mass production of her goods and stop the nonsense mass importaions.
Nigerians should go and see what L'Oreal Paris did for France, Huawei did for China, Microsoft and Apple for America, and so on.
Businesses brings Forex into the country not the government.
Enough with the cry for dollars, whoever needs dollars to import hair extensions, intimacy gadgets and all kinds of trash, should generate theirs.
Only the productive sectors of the economy should be allowed to access Nigeria's forex.

This was Buhari and Emefiele's policy which your god just trashed on the advice of citibank.
So, is Buhari a failure now or Tinubu is clueless.
Which narrative are we running with?

Ikaeniyan0:
Well, issues like the one reported in this article will eventually lead to naira stabilizing and inflation reducing

How will inflation reduce when you're being told that your supply of goods is thinning?
What is inflation again?
Darn!! Nigerian education needs to be revamped