Naira depreciation causes 60.8% decline in vehicle imports in H1 2024

The importation of vehicles into Nigeria declined by 60.8% year-on-year to 10,991 units in the first half of 2024. This sharp decrease reflects the challenges posed by the depreciation of the naira and the broader economic downturn.

According to the latest report from the Nigerian Port Consultative Council (NPCC), vehicle imports fell from 28,024 units in the same period last year to 10,991 units this year. The report highlights the economic pressures affecting the automotive import sector.

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Ship traffic at Nigerian ports also saw a decline, with the number of ships arriving falling by 4.3% year-on-year to 251 in the first half of 2024, down from 275 in the same period in 2023. However, despite the reduced number of vessel calls, the Gross Tonnage of ships increased by 6.9%, reaching 32.614 million metric tons, up from 30.504 million metric tons in the previous year.

Cargo throughput, excluding crude oil, rose by 16.1%, reaching 21.186 million metric tons compared to 18.234 million metric tons in 2023. Inward cargo traffic totalled 13.563 million metric tons, marking a 10.5% increase, while outward cargo traffic was 7.623 million metric tons, representing a 27.7% increase.

Container traffic also showed a slight improvement, increasing by 2.3% to 398,447 Twenty-Foot Equivalent Units (TEUs) from 389,303 TEUs in the previous year. Import containers accounted for 3.4% of this traffic with 198,415 TEUs, while export containers saw a decrease of 1.2% with 195,106 TEUs.

The report further detailed that empty containers made up about 36.3% of total export container traffic. The average turn-around time for vessels improved to 4.6 days from 5.1 days in 2023, largely due to the efficiency of the Lekki Deep Sea Port, which achieved an average turn-around time of just one day.

The increase in Gross Registered Tonnage (GRT) despite fewer vessel calls is attributed to the docking of larger ships, particularly at Lekki Port, where the average GRT of vessels is 3,801,191. This underscores the strategic importance of deep seaports for the development of Nigeria’s maritime infrastructure.

The NPCC report also emphasised the need for collective efforts to ensure that the Lekki Deep Seaport maintains its efficiency and avoids the congestion issues faced by Apapa Port, to facilitate smoother cargo evacuation and bolster Nigeria’s maritime capabilities.