Urging the Federal Government, Mr. Lucky Amiwero, the President of the National Council of Managing Directors of Licensed Customs Agents, has called for the implementation of a special exchange rate to calculate import duties. A stable and manageable exchange rate for import duties, as stated in a position letter by Amiwero obtained by NewsNow on Tuesday, could stimulate economic growth and benefit the broader Nigerian population.
This plea comes after the Central Bank of Nigeria raised the exchange rate for cargo clearance from N1,600. 32 to N1, 618.73, indicating an increase of N18. The new rate has been posted on the official portal of the Nigeria Customs Service.
The increase has occurred amidst a 6.43% depreciation of the naira in July.
Expressing concern, Amiwero highlighted the challenges faced by Nigerians due to the current practice of using floating exchange rates for customs duty calculations.
Referring to the implications, he mentioned, “The floating exchange rate applied to import duty computations has significantly contributed to the rising costs of goods and escalating food prices in Nigerian markets.”
The use of a floating exchange rate introduces unpredictability into the goods clearing process at ports according to Amiwero, complicating logistics and burdening consumers financially.
This approach has led to reduced importation, transportation disruptions, and increased scarcity of basic foodstuffs, especially impacting those with financial constraints,” he added.
Explaining further, Amiwero pointed out how the fluctuating rates in the liberalised foreign exchange market have caused inconsistent pricing, leading to abnormal surges in final sale prices.
To mitigate these issues, Amiwero urged for measures to eliminate uncertainties and inconsistencies associated with the current exchange rate system, emphasizing the need to stabilize the domestic trading environment for importers.
Mr. Basil Nwaolisa, an importer, highlighted the significant increase in the cost of clearing a container at the port. “Clearing a 40ft container now costs at least N16m and above, depending on the items, compared to much lower costs previously,” he mentioned.