The Federal Government of Nigeria has announced a shift in the Nigerian Customs Service (NCS) Exchange Rate for import duties, moving from ₦770.88/$ to ₦783.174/$. This adjustment, implemented just five months after the Central Bank of Nigeria (CBN) floated the Naira, aligns with recent moves toward a single exchange rate regime.
President Bola Tinubu’s commitment to economic stability has driven these changes. However, the transition, combined with existing economic challenges and fiscal policies, has led to a 70% decline in importation, resulting in higher clearing costs in Nigeria compared to other African nations.
Concerns about port congestion and lingering cargoes prompted a meeting led by the Minister of Marine and Blue Economy, Adegboyega Oyetola. The Nigerian Customs Service has responded by forming a committee, empowered by the new Customs Act, to dispose of containers exceeding their allotted time in ports, aiming to address decongestion issues.
Comptroller-General of Customs, Adewale Adeniyi, said the primary goal of port decongestion is to enhance efficiency and trade facilitation.
Importers and clearing agents now face the challenge of adapting to the new exchange rates, potentially leading to increased business costs. Already, economic impacts are being felt, raising concerns about the prices of used cars and other goods.
As the government aims to boost revenue collection, experts warn that 2024 may bring increased hardships for the masses. The rising prices and their effects on businesses could lead to discontent, causing disruptions in various sectors.
Analysts suggest that the government should demonstrate sensitivity to challenging economic conditions and consider implementing palliative measures for citizens and businesses. The heightened costs imposed by stringent fiscal policies may further strain the delicate economic situation, potentially impacting local and international trade. Stakeholders closely monitor the unfolding economic landscape.
