By Modupe Gbadeyanka
The House of Representatives on Thursday asked the Central Bank of Nigeria (CBN) to peg the exchange rate for customs duties below N1,000.
At the plenary today, the lower chamber of the National Assembly suggested the rate be kept at N951.941/$1 to encourage patronage in Nigerian ports to prevent galloping inflation.
During deliberations on a motion moved by Mr Leke Abejide, it was emphasised that the recent changes made to the import duties rate by the apex bank for cargo clearing was unacceptable as it is affecting the economy.
Mr Abejide expressed concerns that in the last six months, the rate has been adjusted more than three times.
He noted that on June 24, 2023, the rate increased from N422.30/$1 to N589/$1, and on July 6, 2023, it was raised to N770.88/$1, and then pushed higher to N783.174/$1 on November 14, 2023, and N951.941/$1 on December 7, 2023.
The lawmaker said the Nigeria Customs Service (NCS), through the CBN, further increased the rate to N1,356.833/$1 on February 2, 2024, and the next day, it rose to N1,413.62/$1.
Mr Abejide said this frequent adjustment in the customs duties exchange rate raises significant concerns about business planning and economic stability.
He informed his colleagues that the actions of the Nigerian government have forced importers to use ports in Tema in Ghana, Lome in Togo, and Cotonou in Benin Republic.
According to him, this has also caused a substantial 65 per cent decrease in cargo importation and business activities at Nigerian seaports, with daily container examinations dropping from approximately 250 to just about 80.
Others who contributed to the motion titled Need to Rescue the Nigerian Economy from Imminent Collapse and Restore Investors’ Confidence in the System echoed his points.
They, thereafter, appealed to the CBN and the Ministry of Finance to provide adequate notice to stakeholders in the maritime industry and the general public before altering customs exchange rates for transparency and allow stakeholders to prepare for any changes that may affect their operations.
The lower parliament mandated its Committees of Customs and Excise, Finance and Banking Regulations to interface with the Minister of Finance, the CBN chief, and the Comptroller General of Customs on how fixed exchange rate for customs and excise duties will work for the system to boost exports and encourage patronage in the nation’s ports.
