The Presidential Committee on Fiscal Policy and Tax Reforms has explained why an exchange rate of N800/$ is being recommended for Customs import duty.
Speaking during a media parley on Thursday, Mr. Taiwo Oyedele, chairman of the Committee, pointed out challenges businesses face due to the volatility of the foreign exchange (FX) market, which causes frequent changes in the import duty rate.
According to him, the Committee is working with various stakeholders for stability to allow businesses to plan adequately.
In Oyedele’s words, “When we did the budget, we said naira to dollar will be N800, now it is 1,000 something. People need to plan.”
He further urged the government to sign an order that would set the exchange rate at N800 for customs import duty for the remainder of the year.
The proposal comes in the wake of recent adjustments by the Nigerian Customs Service (NCS) to the FX rate for tariffs and duties.
On May 27, the NCS set the rate at N1,480 per dollar, following recommendations from the Central Bank of Nigeria (CBN) based on official FX market trading activities.
Oyedele’s call for a fixed rate of N800 per dollar aims to address the concerns and promote better economic planning and stability for businesses engaged in importation.
The committee’s recommendations are part of broader efforts to reform Nigeria’s fiscal and tax policies to enhance economic growth and stability.
“We have always had issues with fiscal policies but COVID-19 complicated it. Productive was low while the government [not just Nigeria] shared money to people to sustain them [while they were indoors]. This compounded the problems – led to inflation – country like UK witnessed double digit inflation that it never witnessed in a generation. Today, Russia-Ukraine, Israel-Gaza wars are still compounding issues.
“So, we are bold with our proposals. We owe it as a duty to be truthful to our country. If you do not try, your chance of succeeding is zero. Our recommendations are quite bold. The implementations will require diligence.
“The President has assured us that our Committee will not just end at the point of submitting the report, but will be part in the implementation stage”, he said.
