CBN, Customs Plan Fixed Import Duty Exchange Rate

In other to stem the current drop of cargo importation into the country due to high exchange rate, the Central Bank of Nigeria (CBN) and the Nigeria Customs Service (NCS), have agree to achieve a stable rate for import of goods to enable business owners and importers plan activities, LEADERSHIP can reliably report.

The increase in exchange rate and volatility of the naira against the United States dollar has made importation into Nigeria ports dropped drastically.

For instance, vehicle volume dropped by 45 per cent while container traffic dropped to 30 per cent while bulk cargo dropped to 20 per cent.

Confirming the development, the comptroller general of Customs, Bashir Adewale Adeniyi, said the CBN and the NCS in support of the minister of Finance and Coordinating minister of the Economy, Wale Edun, are collaborating to achieve a stable rate for import of goods to enable business plan activities.

“With the support of the minister of Finance, NCS is working in close collaboration with the Central Bank of Nigeria to achieve a stable rate for import of goods to enable business plan activities,” the Customs CG said.

LEADERSHIP reports that the managing director of Centre for the Promotion of Private Enterprise (CPPE), Muda Yusuf, suggested fixing a permanent Customs exchange rate for cargo clearance between N900/$ and N1,000/$, for a specified period, such as three months, six months, or a year.

According to Yusuf, fixing a static exchange rate for cargo clearance over three months to one year would not only foster economic stability but also ensure predictability in international trade within the maritime sector.

However, speaking on the development, the former acting president, Association of Nigerian Licenced Customs Agents (ANLCA), Dr Kayode Farinto, said the only solution to low volume of cargoes at the nation’s seaports is for the CBN to have a predictive exchange rate for Customs purposes alone.

According to Farinto, in the last few months, there has been a significant drop in the volume of cargoes in the country over the non stability of the exchange rate.

“The only solution is for us to have a predictive exchange rate for Customs purposes alone. It’s not too much to ask. We pegged the exchange rate for pilgrims going to Saudi Arabia and Jerusalem during Buhari’s era. Why can’t we do the same for importers?”

“On Wednesday, the exchange rate was N1,474. By Thursday and Friday morning, it has increased. A cent is important to every business man because if you’re using a bank loan you have to put all these into consideration. We had a week where we had more than five exchange rates. That is not too good for our economy. We have three levels of importation.

We have bulk cargo, containerised goods and vehicles. The level of import on vehicles has dropped to about 55 percent, level of import on containers has dropped to about 30 per cent, and on bulk cargo it is about 20 per cent. So we are not really winning the war.

“The situation has not been very rosy for us in the industry particularly the freight forwarders. We are not faring well. We have some people who have actually left the job, some still remain thinking tomorrow will be a better day and we have some who have died. I can tell you that we lost a lot of members this year.

“My prediction is that the volume of imports will continue to nosedive if nothing is done. I’m also an importer. If you want to appreciate what I’m saying, go to the manufacturers’ association and ask them what they have imported in the last few months.”

He noted that the situation has also been difficult for freight forwarders, with many losing their jobs and some even losing their lives.

“Customs must negotiate with the CBN, draw them to the minister of Finance, sit on a round table and involve us. I have suggested a tripartite meeting between CBN, Customs and Ministry of Finance or CBN, Customs and freight forwarders and we will be able to tell the CBN that what they are doing is not helping the economy and if we continue like this, the economy will just go in shambles, perhaps they will listen to us but up till now nothing has been done about it.”

Also speaking, a clearing agent, Ikechukwu Anaba, importers are currently unable to import due to fluctuating exchange rate.

He stated further that while bulk cargo import dropped by 20 per cent, containerised goods dropped by 30 per cent, vehicle import is most hit as it dropped by 55 per cent.

“The unstable exchange rate set by the CBN for payment of import duty will continue to lead to a further drop in cargo volume at the nation’s seaports if the government fails to take prompt action to address the problem.

The economy has been experiencing a decline in cargo volume in recent months, with many importers and clearing agents struggling to cope with the fluctuating exchange rate. The situation has also been difficult for freight forwarders, with many losing their jobs,” Anaba stated.

Anaba, however, suggested fixing a permanent Customs exchange rate for cargo clearance between N800/$ and N1,000/$, for a specified period, such as three months, six months, or a year.

He argued that fixing a static exchange rate for cargo clearance over three months to one year would not only foster economic stability but also ensure predictability in international trade within the maritime sector.