High Customs Duties, Nigerian Ports Threatened ⋆ The Clearing Agent

Cost of Clearing Pontiac Cars in Nigeria 2025

February 2, 2024

Customs duty exchange rate: CBN raises to N1,605.82 per dollar

February 21, 2024

Published by Tomi Olagunju on February 21, 2024

Importers Divert Cargoes to Other Countries As Nigerian Ports Threatened Over High Customs Duties

high customs duties at the Nigerian port

However, the regular, increased adjustments to the exchange rate for cargo clearance have prompted threats from customs brokers and other port users to shut down all port operations.

Speaking with the Saturday Tribune, the National President of the Africa Association of Professional Freight Forwarders and Logistics of Nigeria (APFFLON), Mr. Frank Ogunojemite, advised freight forwarders to join forces with civil society groups, the Nigeria Labour Congress (NLC), and trade unions and redeem the masses from the current economic situation.

The APFFLON National President berated the Ministry of Finance and the CBN for losing control of the naira, which has warranted its free fall.

He expressed concern for the extent of suffering endured by Nigerians as a result of the high customs duties, predicting that the people, who are the final consumers, would continue to bear a greater brunt from the ongoing upward revision of the customs duty exchange rate.

Ogunojemite said: “Customs has no hand in the continued increase in tariffs; it should be blamed on the CBN and the Federal Ministry of Finance for the high customs duties.

“What we are witnessing today is a result of sheer incompetence on the part of those managing our economy. Businesses are dying, and manufacturers are shutting down. The ports are almost deserted because freight forwarders have no jobs any more.”

Also speaking, a frontline clearing agent, Mr. Chukwudi Onofile, said that CBN is running the Nigerian economy like a banana republic, saying the ungodly hike in import duty for clearance of cargo is killing import business.

“I told you last week that our importers are now leaving our ports. Why did they have to leave if they had a good exchange rate to do business here?

The implication is that we will lose so many jobs as clearing agents, and the economy will also suffer while the neighbouring economy is booming. The jobs and the money that are supposed to come to us will go to them, and that is the truth.

“Go to Tin-Can and PTML ports, and you will see that there are fewer activities. Many of us are just sitting idle and sleeping in our various offices because there is no job to do. It is high time we embarked on peaceful protests.

“We are not living in the Banana Republic, and our peaceful protests will paralyse economic activities across all the ports in the country if the government fails to do something. We cannot continue like this. Things are hard for everybody,” he lamented.

Also speaking, the president of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, said a lot of people have been pushed into poverty due to the high customs duties.

“You don’t have a floating exchange rate in a fragile country.

There must be stability so that people can consistently predict their importation and have a transparent view of what is coming.

“Many people are abandoning their cargoes at the ports because when you trigger it immediately, you have just a little to bring in cargo, and when you look at the exchange rate, it moves from 1.2 to 2.5. Where do you get the extra?

The government should look at it; the predictability of the transaction is very important,” he explained.

Another agent and former National President of the National Association of Government Approved Freight Forwarders (NAGAFF).

Mr. Eugene Nweke, revealed that many importers are currently on the run due to their inability to meet up with their Chinese creditors over their inability to raise funds to clear their consignments following the unpredictable nature of Nigeria’s foreign exchange regime.

“Another problem our unpredictable exchange rate has caused is that it has made our importers lack integrity in the face of their foreign partners.

“Many of these imports were ordered on credit, but with an unstable exchange rate, many importers have struggled to clear these cargoes, leading to many of them being chased for money by these Chinese firms,” Nweke explained

Checks by The Clearing Agent Solutions Limited on Saturday, February 16th, 2024 revealed that the cost of clearing vehicles from Apapa Port has almost quadrupled.

To clear a 2019 Toyota RAV4, it costs N9,570,000. For a 2004 or 2015 Toyota RAV4, it costs N4,050,000. The 2012 Toyota Tundra cost N2.3million.

A 2005 or 2015 Toyota Camry costs as much as N3,450,000, while a 2008 or 2014 Honda Accord costs N3,750,000.

“A 2010 Mercedes Benz C300 cost N6.9M and a 2005 or 2014 Toyota Corolla cost N3M. A 2010 Toyota Tacoma cost N1.9 million, while a 2010 Mazda CX-7 cost N4.2 million.

Also, a 2005 or 2014 Highlander costs N5.3 million, while a 2016 Highlander costs N7,150,000. For a 2007 or 2013 Avalon, it costs N5.5 million to clear, while a 2008 Lexus ES350 costs N6,050,000. Also, for the 2009 Lexus RX 350, it costs N6.7 million to clear.

if you want to know the cost of clearing other cars, click this link: https://clearingagent.com.ng/cost-of-clearing-cars-in-nigeria/

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