LCCI Tasks CBN on fixing Custom Duty Rate
The Lagos Chamber of Commerce and Industry (LCCI) has called on the Central Bank of Nigeria (CBN) to peg the Custom Duty Rate (CDR) over a specified period in order to enable businesses to plan ahead for their import portfolios.
The CDR is the rate with which the customs evaluate imports to arrive at duties to be paid, which is normally affected by the prevalent exchange rates against the Naira.
The Director General of LCCI, Dr. Chinyere Almona, said in a public statement titled, “LCCI’S Statement on the Incessant Increase of the Customs Duty Rate,” said that CBN should stop the upward review of the customs rate that has seen it increasing the rate for six times within three weeks and reverse it to a lower rate for the purpose of importation.
Almona said: “In recent weeks, we have seen the Naira suffer a hit against the major currencies, falling to as low as N1,900 against the Dollar and N2,250 against the Pound Sterling, in the parallel market. The volatility recorded with the exchange rates has made the CBN adjust the CDR up to six times within this month.
“While the CBN defends its stand on the point that the customs rate is simply following the official exchange rate of the Naira, we at LCCI expect that the CBN will leave this rate at a much more affordable level to at least cushion the pains importers are already suffering in terms of higher import prices due to recent supply chain disruptions caused by the war in Ukraine and more recently attacks at the Red Sea. We call on the CBN to stop the upward review of the customs rate and reverse it to a lower rate for the purpose of importation.”