The President of the National Council of Managing Directors of Licensed Customs Agents, Mr Lucky Amiwero, has urged the Federal Government to implement a special exchange rate for calculating import duties.
Amiwero, in a position letter obtained by media on Tuesday, stated that a stable and manageable exchange rate for import duties would stimulate economic growth and benefit the broader Nigerian population.
This is coming days after the Central Bank of Nigeria raised the exchange rate for cargo clearance from N1,600. 32 to N1, 618.73 representing an increase of N18.
It was also observed that the new rate has been posted on the official portal of the Nigeria Customs Service.
The increase is coming amidst the naira depreciation of the naira by 6.43 per cent in July.
Amiwero, however, expressed significant concern over the current practice of using floating exchange rates for customs duty calculations.
“We wish to highlight to the Federal Government the severe challenges faced by Nigerians, particularly due to the soaring prices of goods driven by the floating exchange rate applied to import duty computations,” Amiwero said.
He argued that this approach had contributed substantially to the rising costs of goods and escalating food prices in Nigerian markets.
According to Amiwero, the use of a floating exchange rate introduces unpredictability into the process of clearing goods at ports, which complicates logistics and places a heavy financial burden on consumers.
“This issue has drastically reduced importation, disrupted transportation, and made basic foodstuffs increasingly scarce, especially for those who struggle to make ends meet and have no financial safety net,” he added.
The NCMDLCA boss further explained that the liberalised foreign exchange market’s fluctuating rates had led to inconsistent and unpredictable pricing, causing an abnormal surge in the final sale prices of goods.
To address these challenges, Amiwero called for measures to eliminate the uncertainties and inconsistencies associated with the current exchange rate system.
He stressed the importance of stabilising the domestic trading environment to provide a more predictable framework for importers.
An importer, Mr Basil Nwaolisa, said that the cost of clearing a container at the port had increased significantly.
“Now, to clear a 40ft container of goods, depending on the item, it costs at least N16m and above. This was far below the amount we used to clear the same consignment before,” he said.
