By Adegbenro Barakat Opeyemi (SIWES Student, Moshood Abiola Polytechnic)
Importers, clearing agents, and various stakeholders within the import and clearing industry are vehemently opposing the Nigeria Customs Service’s decision to raise import duty.
In interviews with The Nation, they argue that this move will worsen inflation and adversely affect the purchasing power of the country’s less privileged citizens. The representatives emphasize the need for the government to reconsider this decision, aligning it with President Bola Tinubu’s Renewed Hope agenda, aimed at fostering economic growth with people-centric policies.
The Central Bank of Nigeria’s recent increase in the exchange rate for cargo clearance from N952 to N1,356 per dollar has intensified the impact, leading to a surge in payable import duty. Critics argue that this decision, the second increase in recent weeks, will significantly elevate the cost of imported goods and services, exacerbating the overall cost of living for consumers and negatively impacting the economy.
Former President of the Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shitti, expresses concerns over the implications, predicting heightened inflation and increased challenges for ordinary Nigerians. He emphasizes that the sharp rise in costs is detrimental to importers, clearing agents, port users, stakeholders, and the maritime industry, causing a ripple effect on the economy.
Importers and clearing agents are grappling with the sudden cost surge, leading to containers and goods being stuck at ports due to financial constraints. Concerns about an increase in smuggling and diversion of cargoes to neighboring countries are also raised, indicating potential repercussions on the Nigerian market.
Maritime lawyer Muhammed Oluwaseyi highlights issues with the Customs valuation process and the lack of a clear dispute resolution system between importers and Customs officials. He warns that the spike in Customs duties not only contributes to higher inflation but also encourages smuggling across the country’s borders.
Stakeholders across sectors express widespread outcry against the recent Customs duty exchange rate increase. The Centre for the Promotion of Private Enterprise (CPPE) voices serious concerns, emphasizing the significant 42.5 percent rise and its potential far-reaching implications for businesses and consumers.
CPPE’s CEO, Muda Yussuf, predicts that this action, coupled with current economic challenges, will further increase inflation and pose challenges for investors, particularly those in the real sector.
In response, the Nigerian Customs Service asserts its commitment to clamp down on smugglers and protect legitimate businesses, as reported in the article.
