Concerns mount as revenue declines in tokunbo car market

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Concerns mount as revenue declines in tokunbo car market
Concerns mount as revenue declines in tokunbo car market

The vehicle importation landscape in the country has taken a hit as the largest roll-on-roll-off terminal in Nigeria, Ports & Terminal Multipurpose Limited (PTML), anticipates a mere 1,050 units of vehicles to arrive in an 11-day window, according to the daily shipping position for Tuesday.

Documents obtained by reporters revealed that between October 16 and 27, only 1,050 used vehicles were expected to reach the PTML terminal.

This sharp decline in imports has been attributed to the scarcity of foreign exchange in Africa’s largest economy.

The daily shipping position document provides information about vessels entering the country, including their names, arrival times, ports of destination, and cargo details.

Breaking down the import figures, the document indicated that 400 units of used vehicles arrived on the 16th, with another 350 expected on the 20th and 300 on the 27th of October.

Acting Comptroller General of Customs, Adewale Adeniyi, acknowledged the drop in vehicle imports during a recent visit to PTML, highlighting that most of the imported used vehicles at the terminal were damaged.

He noted, “We have walked around the whole of this terminal, you have seen the situation, we can see the direct effect on this particular terminal alone.

So in terms of cargoes, we know that the volume is also going down by the day.”

Sikiru Remilekun, a licensed customs agent and CEO of Sikremstar Logistics Limited, attributed the decline to the fluctuating exchange rate.

He emphasized that the current volume is notably lower compared to the previous influx of vehicles into the country.

According to him, “So those that normally come with a large number of vehicles hardly come these days because of the dollar issue.

Even some terminal managers can confirm to you that there is a drop in vehicle importation.”

Abayomi Duyile, the Tincan Island Chapter Chairman of the National Council of Managing Directors of Licensed Customs Agents, echoed the sentiment, saying, “Everybody knows what is happening as even the CGC confirmed it when he came to PTML recently.

He confirmed that what he used to see at the terminal before was neat vehicles, but now most vehicles at the terminal are damaged.”

Thomas Alor, the PTML Chapter Chairman of the National Association of Government Approved Freight Forwarders, added, “A vessel used to come with over 4,000 used vehicles at PTML, unlike what we have now.

The reasons for the drop are the increase in exchange rate and high cost of clearance.”