Principal Consultant/Chief Executive Officer of International Trade Advisory Services Limited, an import, export and advisory consultancy firm, Mr Okey Ibeke, said the free fall of the naira would shrink the nation’s imports to about 40 per cent.
Ibeke who spoke exclusively to Daily Trust noted that the maritime sector is the second highest source of revenue for the federal government, after crude oil.
- COVID-19 vaccination key to protecting yourself, others
- How robbers raided Suleja GSM shop, abandoned vehicle at Zuma rock
Ibeke said the federal government should expect a sharp drop in importation as those in the organised private sector would no longer have more funds to buy goods.
He said the resultant effect is that revenue due to the government from the sector would also shrink as a result of the drop in imports.
According to him, “Nigerians depend entirely on imported cargos. The sector is the second highest revenue earner for the government.t
“With the fall, it means more money would chase fewer goods. Market price would rise in reaction to the shortfall. Inflation would set in, followed by hunger” he said.
Ibeke explained that changes in world trade are creating fresh challenges in the shipping sector and that trade deals are being made and reviewed, tariffs are imposed, regulatory and customs processes are fast changing, while regional trade agreements are generating complexities.
Also speaking, the immediate past Executive Secretary of the Nigeria Shippers’ Council (NSC), Barr. Hassan Bello also expressed fear about its impact on the shipping sector and the operations of terminal operators in Nigeria.
Bello stated that terminal operators are made to pay charges to regulators such as the Nigerian Ports Authority (NPA) in dollars.
He suggested a stakeholder’s engagement to discuss the effect and source for ways that would allow them to pay charges in naira and not in dollars.
“With the development, importers would pay more. But the good aspect of it all is that it would stop needless importation”.
