Stakeholders lament impacts of FX scarcity on importation, jobs

Shave lamented that the reduction in importation caused by scarcity of foreign exchange and the hike in import duty has affected clearing jobs and the ability of traders to remain in business.

They said the continuous decline in the value of the naira is hurting the importation of goods, while expressing concern that the decrease in import volumes could affect the Nigeria Customs Service’s ( NCS) N5.1 trillion revenue target set for the year.

The Former Vice President of the Association of Nigerian Licensed Customs Agents ( ANLCA), Kayode Farinto, said most imports in recent times are raw materials to produce other goods.

He said these raw materials attract a lower duty rate of five per cent, which could further impact the N5.1 trillion revenue target for the NCS. Farinto called on the federal government to introduce measures that would provide incentives for importers and traders to continue their businesses.

He said one such measure could be revisiting the calculation of Value Added Tax ( VAT), which currently goes against the principles of international trade.

Similarly, the Secretary of the Nigeria Customs Consultative Committee, Mr. Eugene Nweke, stated that the economic difficulties faced by the current government are a consequence of the actions of the previous administration.

He believes that the monetary policy in Nigeria has been negatively influenced by preferential treatments and regulatory laxity.

Nweke said the NCS continued to raise the custom duty rate several times in 2023 while importers were still having difficulty finding a balance.

“This is the pinnacle of annoyance because, in the end, the masses— the end users— will bear the brunt of these consequences,” he stated.