Volume of containerised cargoes imported through the nation’s seaports has continued to dwindle after it reached peak in 2014, when Nigeria recorded the highest number of container throughput in 20-foot equivalent unit (TEUs), the Nigerian Ports Authority (NPA) container traffic statistics show.
Ironically, Nigerians are heavily dependent on foreign goods which are mostly imported through the seaports. This is why the nation’s maritime value chain plays a crucial role in the nation’s economy, as around 80 percent of Nigerian trade is transported by sea and via ports.
A breakdown of the NPA statistics shows that the volume of containerised imports started growing in 2010 with 430,923 TEUs; the volume increased in 2011 by 24.5 percent to 536,719 TEUs; it grew by 3.7 percent to 556,900 TEUs in 2012; the volume rose by 11.9 percent to 623,409 TEUs in 2013 and it reached the peak in 2014 with 4.2 percent growth, showing a total number of 649,514 TEUs imported through the ports.
Meanwhile, Nigeria started experiencing shock in its container throughput as the total volume of imported containers started decreasing in 2015 with 17.8 percent decline to 534,223 TEUs; which further dropped by 16.4 percent to 446,645 TEUs in 2016 and a continued drop of 1 percent to 442,290TEUs in 2017 was recorded, showing that the nation’s port business is yet to recover from the 2015 shock, when throughput started to drop.
“Port usage nevertheless has seen a decline in recent years according to the NPA which owns the eight port complexes across the country. Cargo throughput excluding crude oil rose to its highest point in 2014 with 84.9 million tonnes. Afterwards, there has been a decline in preceding years with provisional data for 2018 standing at 35.9 million tonnes (January to September),” confirmed a recent report by the Nigerian Maritime Administration and Safety Agency (NIMASA).
According to the report, external factors remain the key reason for the decline experienced in Nigeria’s port usage. “The volatile nature of international crude oil prices, led to a fall in the value of the naira against other international currieries, especially the dollar and has also reduced domestic demand for imports.
“Likewise the ban on import certain consumer goods- which was part of the government’s efforts to encourage domestic production and reduce the country’s trade deficit also had impact. These policies, including the ban on import of certain products were intended to increase value addition and domestic production,” the report stated.
Records show that the Central Bank of Nigeria (CBN) restricted 41 items from accessing foreign exchange (forex) from the official local currency trading market in 2015.
“The port started recording low tonnage at commencement of the 41 items policy because manufacturers that used to bring in raw materials in large quantity in the past were not able to do so since the introduction of 41 items,” Tony Anakebe, managing director of Gold-Link Investment Ltd, a port operator, told BusinessDay.
He said the imple mentation of the policy crippled port business as only few imports were coming in through the seaport.
According to him, the shipping companies and terminal operators recorded a significant downturn in business caused by a shortfall in dollar supply. He further observed that this also resulted to over 6,000 job losses in the maritime sector between 2015 and early 2017.
Emma Nwabunwanne, a Lagos based importer, observed that effect of the policy restricting importers’ of 41 items, was responsible for the skyrocketing prices of inputs and commodities in the market at that time and the trend has continued till date.
He said that the NPA statistics on vessel traffic and cargo throughput for 2015, 2016 and 2017, was clear evidence to the fact that Nigerian seaports did not do well.
Presently, world economy, business and societies depend on the efficient clearance of vessels and goods in ports to function, develop and prosper.
Pundits believe that if not for the high level of inefficiency at the nation’s seaports, many transshipment cargoes from the neigbouring landlocked countries could have been attracted to make up for the lost volume.
Amaka Anagor-Ewuzie
