Nigeria’s Seaport Terminal Operators Hike Cargo Handling Rate by 45% After Naira Devaluation
Nigeria’s seaport terminal operators have increased their cargo handling rate by 45% following the devaluation of the naira by the Central Bank of Nigeria (CBN) from N461 to N631 per US dollar, which the apex bank sold at the Importers and Exporters (I&E) window.
The new rate could affect the cost of imports and exports in Nigeria, as well as the revenue of the government and the operators.
The terminal operators are responsible for providing various services at the nation’s seaports, such as cargo handling, storage, and examination. They include private companies such as AP Moller Terminal Limited, ENL Consortium Limited, Apapa Bulk Terminal Limited, Greenview Development Nigeria Limited, and Lilypond Inland Container Terminal.
They operate under the supervision of the Nigerian Ports Authority (NPA), which regulates and oversees the activities at the seaports.
The increase in the cargo handling rate by the terminal operators is a response to the devaluation of the naira by the CBN, which was announced on June 14, 2023.
The CBN decided to float the naira and harmonize the multiple exchange rates that existed in the country, in order to improve the efficiency of the foreign exchange market, attract foreign investment, and reduce inflationary pressures.
The devaluation of the naira has also affected the official exchange rate used by the Nigeria Customs Service (NCS) to calculate duties payable on imports. The NCS has adjusted its exchange rate from $422.30 to $589 in line with the CBN’s directive. This means that importers will have to pay more naira for their imported goods.
The implication of these developments is that importers and exporters will face higher costs of doing business at the seaports. Importers will have to pay more for cargo handling services and customs duties, while exporters will receive less naira for their foreign currency earnings. These costs could be passed on to consumers and affect the prices of goods and services in the country.
However, there could also be some benefits for the economy from these changes. The terminal operators could generate more revenue from their services and invest in improving their facilities and equipment.
The government could also collect more revenue from customs duties and taxes and use it to fund public services and infrastructure development. The devaluation of the naira could also make Nigerian exports more competitive in the international market and boost non-oil foreign exchange earnings.
The increase in the cargo handling rate by Nigeria’s seaport terminal operators is a reflection of the impact of the naira devaluation on the economy.
It is a policy decision that has both positive and negative consequences for various stakeholders. It requires careful monitoring and evaluation by the government and other relevant agencies to ensure that it does not create undue hardship for Nigerians or undermine the growth potential of the economy.
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