The Federal Government adjusts the Nigerian Customs Service (NCS) exchange rate calculations of import duties from N770.88/$ to N783.174/$. This change, coming five months after the Central Bank of Nigeria floated the Naira, reflects the economic challenges faced by the country, leading to a 70% decline in importation. Stakeholders express concerns about the impact on importers, clearing agents, and the overall cost of clearing cargoes, already considered the most expensive in the West and Central Africa hub.
The Minister of Marine and Blue Economy, Adegboyega Oyetola, highlights the issue of abandoned and overtime cargoes, reducing storage capacity at the ports. The NCS inaugurates a committee to decongest overcrowded ports, emphasizing the importance of port efficiency and trade facilitation.
The increase in duty rates is expected to affect the prices of used (Tokunbo) cars, indirectly influencing the cost of Nigerian used vehicles. Stakeholders warn of potential negative effects on international and domestic trade, calling for measures to stabilize the declining value of the Naira.
The economic hardship and harsh fiscal policies are seen as contributing to a challenging business environment, with concerns about the suffering of the masses and potential repercussions, including a possible hunger-induced revolution.
Stakeholder Comments:
• Minister of Marine and Blue Economy, Adegboyega Oyetola: Port decongestion is a paramount objective to enhance efficiency and trade facilitation.
• Dr. Bolaji Akinola, Spokesperson for STOAN: The depreciation of the Naira is affecting duty payments and increasing the cost of shipping and clearing goods.
• Ajanonwu Vincent, Importers Association of Nigeria (IMAN): The government’s fiscal policies are seen as punishing the masses and hurting international and domestic trade.
• Dr. Muda Yusuf, Centre for the Promotion of Private Enterprise (CPPE): The current economic situation requires sensitivity from the Ministry of Finance and the CBN, urging the government to fulfill promised palliatives.
• Taiwo Fatomilola, AREFFN: The harsh fiscal policy is making business difficult, affecting profits, and creating challenges for importers and businesses in Nigeria.
