Stakeholders in the maritime industry have decried the new Customs duty exchange rates. The stakeholders condemned the hike in import duty by the Nigeria Customs Service (NCS), saying it will lead to higher inflation and further weaken the purchasing powers of Nigeria’s impoverished masses.
According to Prince Olayieola Shitti, the former president, the Association of Nigerian Licensed Customs Agents (ANLCA), the increase is bad because it will translate to more money for the Federal Government but more difficulty for Nigerians.
He said:
“In layman’s terms, it simply puts more money into the coffers of Customs and creates an increase in inflationary rate. It is a bad omen for the importers, clearing agents, port users, stakeholders, operators, and maritime businesses.
“As I speak many importers and their clearing agents have several containers and goods to clear from the port that are still there because of the sudden increment.
“Many just woke up to this unpalatable rate and up till now, we have not been able to pay because the duty payable just sky-rocketed. So, it has become a big problem for clearing agents and the importers.”
Recall that the Federal Government had a few days ago, through the Central Bank of Nigeria (CBN) increased the exchange rate for cargo clearance from N952 to N1,356 per dollar. This effectively translates to a spike in payable import duty.
The latest hike is coming weeks after the rate was increased from N783 to N952 per dollar.
It was in November last year that the exchange rate for cargo clearance was raised from N757 per dollar to N783 per dollar, representing a 3.4 percent increase, and was later raised from N783/$ to N952/$ in December
However, to Okoro Nkem, an importer and exporter, who specialized in Automobiles, noted that the new Customs duty regime would further fuel smuggling and the diversion of cargoes meant for the Nigerian market to the ports of neighbouring countries.
He said:
“Some cargoes have been trapped at the port and I don’t see how they are going to break even because of the amount they have to pay on them as duty. No importer can break even with this new exchange rate,” he said
The Federal Government had on Friday, through the Central Bank of Nigeria raised the exchange rate for cargo clearance from N952/$ to N1.356 per dollar. This effectively translates to a spike in payable import duty.
