Importers and clearing agents have decried the increase by the Central Bank of Nigeria (CBN) of foreign exchange (forex) rate payable as customs duty on imports.
Importers and agents who spoke with our Daily Trust on the upward review of the forex rate said, the new adjustment from N326 to N361 constituted a financial burden to them and therefore should be reviewed by the monetary authorities.
Speaking on the monetary policy measure, the President of the Association of Nigerian Licensed Customs Agents (ANLCA), Iju Tony Nwabunike, in an exclusive telephone interview with our correspondent, projected that the adjustment would have a negative effect on the economy in the post-COVID-19 months ahead.
Nwabunike, who expressed shock at the speed with which the Nigeria Customs Service (NCS) began to implement the new rate, said that the service should have waited till after the traumatic effect of COVID 19 on the economy of Nigeria had subsided before effecting the new regime.
He said: “I appreciate the fact that the price of crude oil has gone down. I also appreciate the fact that COVID 19 pandemic has grounded the economy of the world and oil-rich countries like ours have been drastically affected.
“But while all other nations that are dependent on oil are giving palliatives to organizations and companies, Nigeria is busy devaluing her national currency, the Naira. This is a very wrong step.
“The effect of government action is going to be enormous on the economy. It is about inflation, unemployment and remarkable increase in crime.”
He said initially, the Federal Government gave the NCS a N1.5 trillion revenue target but was later reduced to about N800 billion because of the effect of COVID 19, noting that with the recent hike, the Customs will not be able to meet the FG adjusted target of N800 billion.
On the implications of the adjusted forex rate on imports for the maritime and manufacturing sectors, Nwabunike said: “It means that manufacturers will no longer import raw materials, Importers will not import goods. It will have a triple effect on the economy.
“It will bring about $46 differentials. Who will take care of this differential? The consumers, because manufacturers would transfer this to the consumers.”
It would be recalled that the CBN had penultimate week communicated an adjusted increase in the exchange rate for customs duty to importers and their agents.
Daily Trust reliably learnt that importers and agents only knew about the adjusted rate while making a declaration for their goods.
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