- SACFEA calls on Federal Government to compel port agencies to charge in Naira.
- Aim: De-dollarize the economy and reduce foreign exchange pressure.
- Shipping companies currently charge freight in dollars, hurting exporters.
- Export processing delays cause losses, routing exports through neighboring countries.
- Proposed Economic Stabilisation Bill: NIMASA and NPA to collect charges in Naira.
- Benefits: Reduced foreign exchange pressure, increased efficiency, and economic growth.
The Shipping Agencies, Clearing and Forwarding Employers Association (SACFEA) is pushing for a major change in how port agencies operate in Nigeria. SACFEA’s President, Mrs. Boma Alabi, is calling on the Federal Government to require its agencies at the ports to charge in Naira instead of dollars. This move aims to de-dollarize the economy and reduce the pressure on foreign exchange .
Alabi points out that shipping companies used to charge freight in Naira, but now it’s all in dollars. This is particularly problematic for exporters, who have to pay more due to the foreign headquarters setting the freight prices. For instance, shipping a 20ft container from abroad to Nigeria costs around $4,000, while exporting the same container from Nigeria costs only $1,000 .
SACFEA also wants the government to speed up export processing at the ports to avoid delays and losses. Currently, some Nigerian exporters are routing their exports through neighboring countries due to the delays, which isn’t in the nation’s interest. Fast-tracking port operations would increase efficiency and reduce waste .
Interestingly, the Federal Government’s Economic Stabilisation Bill already proposes that NIMASA and NPA collect charges in Naira. This move is designed to prioritize the use of Naira and reduce pressure on the foreign exchange market .
Benefits of De-Dollarization:
- Reduced Pressure on Foreign Exchange: By using Naira, Nigeria can reduce its reliance on foreign currency.
- Increased Efficiency: Faster export processing and reduced delays will make Nigerian ports more attractive.
- Economic Growth: De-dollarization can help stabilize the economy and promote local trade.
