The Centre for the Promotion of Private Enterprise has apprised that Nigeria risks losing cargoes to neighbouring countries over a high exchange rate for import duties collection by the Nigerian Customs Service.
This was disclosed in a statement signed by the Director/Chief Executive Officer of CPPE, Dr. Muda Yusuf, according to Nairametrics.
CPPE lamented the impact of the high exchange rate for import duties collection on businesses and the cost of living in the country.
According to the statement, the risk of cargo berthing in neighboring nations could have a severe effect on the federal government’s drive to generate revenue
The statement reads, “The high and volatile exchange rate for import duty assessment is fuelling the already high inflation, increasing production and operating costs for manufacturers and other businesses, worsening the cost-of-living crisis, putting maritime sector jobs and investments at risk and weakening investors’ confidence. There is also the added heightened risk of cargo diversion to neighbouring countries and smuggling which could jeopardize the realization of customs revenue target.”
The Nigeria Customs Service recorded a decrease in cargo throughput in the first half of the year, despite stating a 127% gain in revenue during that same period.
The CPPE pleaded with the President to issue an Executive Order setting the customs duty exchange rate at N1000/$ for the ensuing six months. It stated that the suggestion is in line with the federal government’s ongoing initiatives to lessen the difficulties that individuals and companies are facing.
It noted that the Organized Private Sector (OPS) strongly backed this strategy, and even the Presidential Committee on Fiscal Policy and Tax Reforms had made a similar proposal.
It warned the customs duty exchange rate on the Nigeria Customs Service portal stands at N1578/$, a rate that has been changing almost weekly and is detrimental to the investment climate.
Also, the centre raised two concerns on foreign exchange policy and the other related to trade policy. It argued that the Central Bank of Nigeria’s role should conclude with the opening of Form M for importers within the framework of the existing foreign exchange policy
It added that matters involving international trade should fall under the jurisdiction of the Federal Ministry of Finance and the Federal Ministry of Trade and Investment, as these institutions are legally responsible for trade policy.
