The new exchange rate, which has increased from N197 to N282 may have led importers of vehicles to abandon their consignments at the terminals, investigations by Auto Port Weekly has confirmed.
According to operators, the new Central Bank of Nigeria (CBN) foreign exchange policy which has already being implemented by the Nigeria Customs Service, appears inimical to importers as tough time awaits vehicles imported into Nigeria.
Auto Port Weekly observation last week confirmed that already, the Mile 2 off-dock terminal, which belong to Ports and Terminal Multiservices Limited (PTML) was filled with vehicles of all kinds.
Similarly, the case remains the same at the mother RORO facility , Tin Can Island Port, where thousands of units were sighted at the respective car parks waiting for clearance.
The CBN increased the exchange rate duty from N197 to N282 per dollar in June and importers who might have ordered for vehicles on-line or buy directly from dealers abroad have the intention to pay the 35% duty and 35%levy on their vehicles only to be greeted with a fresh payment guidelines, just some few weeks ago.
Already, importers have a fair idea of what to pay as duty on their vehicles, but the new rate may force them to source for addition funds so as to clear their vehicles from the terminal.
Confirming the development to our correspondent, last week, a top chapter executive of National Association of Government Approved Freight Forwarders (NAGAFF), Chief Patrick Ofoegbu said that congestion has not fully started at the ports, noting that it takes close to three months for vessel to berth in Nigeria from Europe or America.
Ofoegbu reiterated that, "as soon as the ships with a large number of vehicles start calling at the ports, there will be no space for them to stay"
"This is just a tip of the iceberg because as we space those that have their vehicles at the terminal will be forced to abandon them because there is no money to clear the vehicles".
Speaking further, the NAGAFF executive affirmed that "from next month the situation will go from bad to worse because more ships will enter Nigeria with cars".
According to him, the mind-set of the shipper is on the usual 70%, he added that the new exchange rate may further force them to either abandon their consignment or source for other means to pay the duty.
Ofoegbu also noted that even those that would be able to pay the new tariff will further pay demurrage charges on the same consignment, which in turn may frustrate their effort to clear the consignment from the ports.
Also, the Public Relations Officer, National Council of Managing Director Licensed Customs Agents (NCMDLCA) Mr. Nnuekwe Hyginus maintained that there are signs of ports congestion on account of the CBN directive on the exchange rate on duty payment.
Nnuekwe said some of the importers are still battling with the 70% tariff before the introduction of the CBN new exchange rate, adding that what is currently visible at the terminals are signs of what to expect in coming weeks.
The NAGAFF PRO added that neighbouring ports within the region may seize the opportunity to reduce import duty and other shipping charges.
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