The Nigeria Customs Service has increased import duty rate from N306 to N326 per dollar following a new foreign exchange policy by the Central Bank of Nigeria (CBN).
Controller, Apapa Area Command of the NCS, Comptroller Abba Kura, who confirmed the development to SHIPS & PORTS in Lagos on Monday, said the implementation of the new exchange rate takes immediate effect.
He said, “Going forward, any declaration made will reflect the new exchange rate of N326 with effect from today (Monday).”
Clearing agents operating at the ports have, however, expressed displeasure with the new policy, which they said would add to the cost of clearing cargoes at the port and prices of goods in the market.
Speaking with SHIPS & PORTS, a clearing agent, Dennis Atuokwu said Customs has already adjusted the exchange rate on their system.
He said, “The exchange rate has just been increased today (Monday) and Customs has put it in their system already. This is going to affect us. We are just notifying our customers because automatically the new exchange rate will add to cost of import clearance and you know when this happens, it will affect every other sectors. This is going to be another heavy load for consumers because whatever cost the importers incurs will be transferred to them.
“It will increase the Cost, Insurance and Freight (CIF) value of every import. The Federal Government wanted to increase VAT, people resisted it, so they now came with a new exchange rate. I think the government just need money to recover from their election expenses.”
Another clearing agent, Ugochukwu Nnadi said the increase would fuel the further diversion of Nigeria-bound cargoes to the ports of neighbouring countries, especially Cotonou port.
“This is not the first time government is increasing exchange rate and we are not surprised because already the economy is in bad shape and this will further translate to lower currency value.
“These are some of the policies that make Nigerian importers go to neighbouring countries at the detriment of our own economy because Customs is more interested in revenue than trade facilitation. This may likely reduce importation,” he said.
When contacted, Customs Public Relations Officer, Joseph Attah, said he could not confirm the new exchange rate as he was out of the country.