Bayo Akomolafe 
●Vessels awaiting berth hit 46%
IMPEDIMENT
New exchange rate will make importers to abandon their cargoes
There are indications that the cost of importing cargoes through Nigerian ports would be increased by five per cent from Monday, this week, as the exchange rate for all imports has gone up from N361 to N381 per dollar.
This is coming within five months that it was first adjusted from N326 to N361per dollar by the Central Bank of Nigeria (CBN) for all imported goods coming into the country.
Already, the apex bank has banned middle men in opening of Form M, leading to anxiety among the maritime stakeholders, who said that dealing with manufacturers directly would be difficult.
Importers, who complained that they were not consulted before the new rate, said that they would be paying the exchange rate to bring cargoes to the port Findings by New Telegraph revealed that the vessels awaiting berth had already gone up from 24 per cent to 46 per cent from 37 in July 2020, leading to massive congestion at the Lagos ports.
A freight forwarder, Mr Joseph Afolabi, noted that if the latest decision was to further assist NCS to achieve its projected revenue target of N2 trillion in 2020, the increase would lead to more demurrage as many importers will leave their cargoes inside the ports.
However, a cargo consolidator, Mr Jayeola Ogamode, told New Telegraph that the apex bank took the decision to save the economy from collapse. He added that N20 increment would go a long way to bridge the depleting revenue target, especially since the outbreak of COVID-19.
Notwithstanding, he said that CBN should have supported importers through flexible bank loans with low-interest rates, adding that the maritime sector was the only place available for the government to generate revenue at the moment. He stressed that the price of oil, which the country depends on, had already collapsed globally.
The managing director urged CBN to exempt all the current cargoes with approved Form M in the port and high sea from the new import exchange rate. It would be recalled that the National Association of Government Approved Freight Forwarders (NAGAFF) had called for a review of the implementation of the new CBN foreign exchange policy CBN by customs for duty payment at the port.
The National President of the association, Increase Uche, explained that the use of Form M as a tool for cargo declaration was causing confusion in the entire system. He noted that the fiscal policy measure used in calculating duty would create serious upheaval on the side of the shipper. Uche added that the monetary policy of CBN in 2015 in restricting 41 items from accessing foreign exchange had not been achieved,
Similarly, the Shippers’ Association of Lagos State (SALS) had said earlier that the increase in the former exchange rate for cargo clearing would lead to shortage of raw materials used by the manufacturing sector, saying that the decision by the bank to hike the exchange rate for importers would affect the fragile economy, especially the manufacturing sector.
The President of SALS, Rev. Jonathan Nicol, expressed fear that industries, importers and exporters would be forced to source for additional funds to clear their cargoes trapped in the ports due to the coronavirus pandemic.
Nicol said: “The new rate does not reflect on Form ‘M’s already approved by the Central Bank of Nigeria. It is the approved rate on Form M that is used to procure foreign exchange for each shipment and also effect transfers to suppliers.
Therefore, the excess fund being raised through customs have no bearing. It is believed, maybe, that the excess fund is sent to an escrow account domiciled in the central bank for no useful purposes.”
