The Federal Government has revised the exchange rate for the Nigeria Customs Service (NCS) for the importation of goods for the second time within a 24-hour period.
Typically determined by the Central Bank of Nigeria (CBN), the exchange rate for Duty collection has seen significant fluctuations recently.
As of the end of January, the importation exchange rate stood at N953 per dollar. However, on Friday morning, it was raised to N1,356 per dollar. Within a short span, the rate underwent another review, reaching N1,413.62 per dollar by Saturday morning.
The constant changes in the exchange rate have triggered concerns and panic among freight forwarders, particularly members of the Manufacturers Association of Nigeria (MAN), who play a pivotal role in the importation process. The abrupt increments are expected to have a cascading effect on the cost of importation, subsequently leading to a surge in the cost of goods and services in the market.
In response to the latest hike, Dr. Eugene Nweke, a former National President of the National Association of Government Approved Freight Forwarders (NAGAFF), expressed his apprehension about the “overwhelming consequences” for the public. He referenced insights from the Sea Empowerment Research Centre presented at the recent World Economic Forum (WEF), highlighting global concerns surrounding the drop in global trade volumes during the 2022–2023 period.
Quoting Dr. Okonja Iweala, the Director-General of the World Trade Organization (WTO), Nweke emphasised the need for comprehensive fiscal policies to address trade-related challenges. He called on the Hon. Coordinating Minister to intervene and direct the CBN to refrain from the frequent adjustment of the exchange rate for customs duty assessment. Nweke emphasised the impact of these increments on the Nigerian populace, urging a reconsideration in the interest of the citizens.
Reportedly, the leadership of the Association of Nigerian Licenced Customs Agents (ANLCA) is contemplating a meeting with the CBN to discuss the necessity of reducing the exchange rate, considering the potential ramifications on the importation industry and the broader economy.
