Nigerians to pay more for goods as FG raises cargo clearance rate again
The Central Bank of Nigeria (CBN) has, in less than 24 hours, set the Nigeria Customs Service exchange rate for goods importation at N1,413.62 per dollar. The CBN had on Friday jerked up the exchange rate for import from N942 to N1,356.883 per dollar.
The exchange rate for duty collection is usually determined by the CBN. The Customs exchange was jerked up from N953 per dollar as at December 2023 to N1,356 per dollar on Friday morning.
The unstable nature of the naira has created panic among freight forwarders, particularly among members of the Manufacturers Association of Nigeria (MAN) who are major importers.
With the latest increment, cost of importation is billed to increase, while the cost of goods and services in the market would increase astronomically.
Recall that the Central Bank of Nigeria has issued a new circular that removes the previous cap on exchange rates quoted by International Money Transfer Operators (IMTOs).
The circular signed by Hassan Mahmud, director of trade and exchange department, was titled, ‘Removal of Allowable Limit of Exchange Rate Quoted by the International Money Transfer Operators.’
To boost liquidity, the financial regulator said IMTOs were to quote exchange rates for naira payout to beneficiaries, based on the prevailing market rates at the Nigerian foreign exchange market
Reacting to the fresh hike, a former national president of the National Association of Government Approved Freight Forwarders (NAGAFF), Dr Eugene Nweke, raised the alarm over the overwhelming consequences of the increments on the public
He said that most often, formulation of fiscal policies for trade related needs and leaving out the fiscal policy to drive the freight logistics chains breeds limitations to the overall performance of our national trade volumes.
He said, “Following the overwhelming consequences of this increment, we wish to request the minister to direct the CBN to desist from this act of incessant increment of exchange rate for customs duty assessment forth with, doing so for the interest of overstretched and suffering Nigerians in the spirit of the Renewed Hope mantra.”
However, the leadership of the Association of Nigerian Licensed Customs Agents (ANLCA) is reported to be planning an engagement with the Central Bank of Nigeria on the need to reduce the exchange rate.