The Federal Government has made another adjustment to the Nigeria Customs Service exchange rate for importing goods, marking the second change within 24 hours. Normally, the exchange rate for Duty collection is determined by the Central Bank of Nigeria (CBN).
The importation exchange rate, which stood at N953 per dollar at the end of January, was raised to N1,356 per dollar on Friday morning. However, by Saturday morning, it had been further revised to N1,413.62 per dollar.
This development has caused concerns among freight forwarders, especially members of the Manufacturers Association of Nigeria (MAN), who are significant importers. The latest increment is expected to lead to an increase in the cost of importation, subsequently leading to a rise in the cost of goods and services in the market.
Reacting to the recent hike, Dr. Eugene Nweke, a former National President of the National Association of Government Approved Freight Forwarders (NAGAFF), expressed concern about its potential “overwhelming consequences” on the public. He referred to the Sea Empowerment Research Center’s observations at the World Economic Forum (WEF), highlighting global worries about the decline in global trade volumes in 2022/2023.
Dr. Nweke quoted the Director General of the World Trade Organization (WTO), Dr. Okonja Iweala, who presented performance statistics and outlined options available to global bodies to overcome challenges and boost global trade volumes amidst various impediments.
Dr. Nweke emphasized that often, the formulation of fiscal policies for trade-related needs without considering the fiscal policy to drive the Freight logistics chains limits the overall performance of national trade volumes. He called on the Honorable Coordinating Minister to direct the CBN to stop the frequent increase in the exchange rate for customs duty assessment, citing the adverse impact on the overburdened and suffering Nigerian populace.
The Association of Nigerian Licensed Customs Agents (ANLCA) leadership reportedly plans to engage with the CBN to discuss the need to reduce the exchange rate.
Daily Trust