Yuletide importation drops as cargo throughput at Nigeria’s seaports falls 44%

Importation into Nigeria is expected to decline during the upcoming holiday season, with cargo throughput at the nation’s seaports recording a 44% drop. This trend is largely attributed to the depreciation of the naira, which has increased the cost of foreign currency, especially the U.S. dollar, by over 100%.

Between September 2023 and September 2024, the naira depreciated by 52.92%, moving from N905/$1 in December 2023 to N1,666/$1 as of November 17, 2024. This sharp currency devaluation has made cargo clearance more expensive, rendering importation less attractive to Nigerian importers.

Confirming the decline, Comptroller Dera Nnadi, Customs Area Controller (CAC) of the Tin-Can Island Port Command, stated that cargo importation through the port had dropped significantly. “Last year, 9,000 containers were imported through the Tin-Can Island Port, but as of November 2024, this figure has fallen to just 5,000 containers,” he said.

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Dr. Kayode Farinto, managing director of Wealthy Honey Investment, a clearing and forwarding firm, highlighted that the fluctuating exchange rate has led to declines in all categories of imported goods. Vehicle imports have dropped by 55%, containerized goods by 30%, and bulk cargo by 20%.

Farinto urged the government to implement a more stable and predictive exchange rate for Customs to help stabilize import activities. “A stable rate is crucial for businesses, especially those using bank loans,” he noted, adding that frequent fluctuations, with multiple exchange rates within a single week, disrupt the economy.

Without intervention, experts predict a continued decline in import volumes, affecting both businesses and Nigeria’s economic stability.