Customs
Ember months: Cargothrouput slumps by 40 percent at Nigerian ports
—- Customs laments
The tone of the global trading and shipping environment has been characterised by uncertainty as a result.
The United Nations Conference on Trade and Development (UNCTAD) acknowledged the disruption of regional logistics, halted port operations in Ukraine, the destruction of infrastructure, trade restrictions, increased insurance costs and higher fuel prices as causes of issues within the Black Sea region.
Jan Hoffmann , Head of Trade Logistics branch at UNCTAD, says: “The war in Ukraine impressively shows again how globalised the shipping business is: Shifts in demand in one corner of the world lead to changes in prices and fleet deployment in many other corners of the world.
“What I find most interesting of our findings is that almost half of the increase in global food prices is due to the higher shipping costs.
“And these are higher because goods have to travel longer distances, i.e. we have more ton-miles, but also each ton-mile is now more expansive, because of a shortage of global shipping capacity.”
In 2020, grain prices and shipping costs were already increasing and the Ukraine conflict has accelerated this trend.
According to UNCTAD, between February and May 2022, the price of dry bulk goods transportation had risen by around 60%.
Around 36 countries import over 50% of their wheat from the Russian Federation and Ukraine and global sea exports of grain are expected to decline by 3.8% this year while global shipments of fertiliser decline by 7%.
“Black Sea ports normally account for over 90% of Ukrainian overseas grain shipments, weekly port calls have dropped from 60 to almost zero in Ukraine due to the conflict”
In addition, the high dollar exchange rates to the Naira as well as the high Customs exchange rate for goods clearance have all impacted the purchasing powers of Nigerian importers.
It could be recalled that for yet another time in September, the Customs exchange rate was jerked up from $409 to $422.3, an increment of $13.3.
” Also the recent naira redesigning policy of the government and the coming elections in the country have all created an atmosphere of uncertainty among importers who prefer to stop importation until after the elections when there would be some sort of clarity, and stability in government economic policies,” a source said.
This lull has therefore put pressure on the men and officers of the Nigeria Customs Service to meet their revenue targets amidst sluggish importation.
”We are under pressure to rake in more revenue for the government despite low imports.
“This is because the revenue from the Customer has become a financial mainstay for the government which now relies on Customs to fund some of its recurrent expenditure, especially payment of salaries for workers” a highly placed source declared.
“To cushion the effects which the lull in importation may have on our revenue generation, we have to tighten the noose by plugging all the revenue loopholes to generate maximum revenue”
” Some of the areas where we hitherto overlook by giving the importers and their agents a breathing space to operate have now been tightened up for maximum revenue collection” a customs source declared.
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