ABUJA: Pelagic trader Apexpost has seen its turnover dive last year, hit by Nigeria’s import quota, although it expects improved earnings in 2015 after lifted restrictions in November 2014.
The UK-based company, which relies on the trade of frozen pelagic fish in West Africa for 71% of its revenue, posted a 52.8% drop in turnover to £29.4 million.
“Turnover is seen to be in line with the company’s competitors in the region,” the company’s 2014 financial report reads.
Apexpost’s net profit was also down by 81.8% year-on-year to £40,547, although the firm did not enter into red territory.
“In light of the adverse political conditions in Nigeria, a major market for the company, the directors are pleased that the company has remained profitable,” the company said.
Last year’s results “had predominately to do with the Nigeria import quota”, but the situation “has improved this year”, Apexpost’s financial director Mike Punjabi told Undercurrent News, declining to provide further details.
In November 2014, the restrictions “were lifted”, the company’s financial report reads.
“These restrictions were not sustainable in the long run and indeed this has been proved to be the case,” Apexpost said.
“Whilst uncertainty still prevails as to whether some sort of quota system will be re-imposed, particularly after the recent change of democratically elected ruling party, the major importers have taken the opportunity in the interim to carry on with the business at levels similar to those before the import restrictions were imposed,” it said.
Sources told Undercurrent previously that in late 2014 an important additional import quota was handed out to the Nigerian importers by the government, so a lot of quantity was shipped out at the time, resulting in a jump in trade to Nigeria.
The quota issued last November was about 750,000 metric tons, sources said.
By contrast, only 150,000t in quotas were reportedly allocated for Nigerian fish imports for the first half of 2014. Such low quotas were not unexpected, as the government had said plans were to reduce imports by “just” 25% last year.
In 2013, Nigeria announced that it would take measures to start a structured embargo on fish imports from Jan. 1, 2014, as part of plans to make the country self-sufficient in seafood and boost its domestic fish farming business.
