High Exchange Rate: Nigeria Customs Urged to Create Statistics Centre

By DAPO OLAWUNI

Following the constant fluctuations in exchange rate of Nigerian Naira to the American Dollar, the Nigeria Customs Service has been urged to create a statistics centre to ensure that the market fluctuations does not cripple importation into Nigeria.

Cordinator of Save Nigeria Importers, Exporters and Freight Forwarders Coalition, Chief Osita Patrick Chukwu stated this in an exclusive chat with DAILY TREND NEWS.

Recall that the Federal Government, through the Central Bank of Nigeria (CBN) had in June 2021 adopted a higher exchange rate band from N381 to N404.97 for calculation and payment of import duty following the rise in Dollar rate.

From the past five days, the exchange has been rising, and it currently stands at N515 to $1.

Speaking, Chief Osita advised that whenever the need arises to increase exchange rate for goods importation, Customs should go into its tariff books and reduce tariff on items, so as to enable duty collection.

He said this would create a balance and a win-win situation for both government and the importers.

According to him, the current exchange rate introduced by the CBN has caused many importers to go out of business, thereby rendering their clearing agents jobless.

The situation, according to him has equally triggered a higher cost of goods in the market and increased level of inflation.

Chief Osita stated that “Customs does not have good statisticians, they should endeavour to create a modal statistics centre, if they have it before and it is not functioning well, then, let them upgrade it to work”

“What they need to do is; if the exchange rate has gone high, they should ensure that tariff is reduced to enable duty collection and make things favourable for both importers and government”

“Not doing this has caused some importers to stop importing”

“If the statistics centre is working, they would be able to ensure that whenever the Dollar goes high, duty of 10% is slashed down to 5%, while 30% duty is slashed to 15%.

“This would give equilibrium balance on both sides, so that all investors and traders are not taken out of business and thereby creating vacuum in the system and agents are left without jobs.

“They should not be in hurry to increase the exchange rate whenever Dollar increases.

“When Dollars goes up, Customs should go to its tariff books and do some amendments so that there would be a balance for traders who are struggling to get loan to import” he said

According to him, whenever the customs is to effect an increase in the exchange, they don’t call for stakeholders meeting or give prior notice to stakeholders. He said this shows a total disregard for port operators.

Our correspondent however gathered that the Customs does not have control over the exchange rate. The CBN gives the new rate, while Customs update the increase on their system immediately.