Explaining the reason for the delay in the full impact of Naira appreciation on cargo imports, the Centre for the Promotion of Private Enterprise (CPPE) has highlighted that it is linked to the import cycle.
In a recent statement, Muda Yusuf, the Director of CPPE, shed light on this matter.
He also pointed out the negative effects of fluctuating exchange rates on imports in the sector.
Yusuf recommended that the Central Bank of Nigeria establishes a fixed customs exchange rate for cargo clearance, ranging between N900 and N1,000 per dollar, over a period of three to 12 months.
Commenting on the situation, Yusuf said, “The decrease in the exchange rate is a positive development for imports and the maritime industry. However, the effects may not be immediate due to the nature of the import cycle, which can sometimes span 60 to 90 days.
Therefore, we hope that this current trend is sustained. As time passes, in a few weeks or months, the impact on port activities will become evident. This is a significant development,” he emphasized.
Fluctuations in the customs exchange rate have persisted for months, influenced by FX market fundamentals.
According to NewsNow, the Naira appreciated by gaining N75 against the Dollar on Wednesday.