The Chairman of the Seaports Terminal Operators Association of Nigeria (STOAN), Princess Vicky Haastrup, has revealed that seaport activities and cargo throughput 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 the Nigerian seaports.
She stated this during a recent breakfast meeting organised by the Nigerian Chamber of Shipping (NCS), last week.
Haastrup, who was one of the panellists at the event themed: “Nigeria’s 2023 Economic Outlook: Special Focus on Maritime Shipping Industry,” said that the drop in port activities has been attributed to numerous factors.
According to her, the upcoming Presidential elections and the uncertainties have been influential in the port activities and cargo throughput.
She posited that foreign exchange remains the major setback as the purchasing power of importers has weakened further with $/800 recorded in the parallel market, last week.
According to her, the growing economic hardship coupled with government fiscal policies on certain imports like Customs duties on vehicles will also define the cargo volumes to be recorded at ports throughout the year.
She said “This year, it is going to be very gloomy. We have a downward turn of about 30 per cent for cargoes and up to 40 per cent for general cargoes.
“The first quarter and second quarter in 2023 will see lower importation until after the elections. Naira devaluation is also a major issue with N800/$ in the parallel market. Nigeria is a cash-based economy and right now there isn’t enough cash.”
Nonetheless, she expressed worry over the Federal Government’s plans to further devalue the naira even as she said that 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 cargo. 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 by delays caused by the gridlock”.
