Customs: Naira devaluation has made Nigerian goods affordable for African countries

Timi Bomodi, comptroller of Seme command, Nigeria Customs Service (NCS), says naira devaluation has positively impacted exports.

Bomodi spoke on Sunday during an interview with the News Agency of Nigeria (NAN).

He said imports and exports are usually influenced by market forces, specifically demand and supply.

“The exchange rate plays a big role in determining the demand or the purchasing power of the people,” Bomodi said.

“We are talking about the exchange rate of naira vis a vis its impact on exports. Now, as the value of naira begins to decline, you find out that Nigerian-made goods are considered cheap within the region.

“This encourages people from neighbouring countries to want to purchase goods from Nigeria but while we complain that the exchange rate has a negative impact on imports, it has a positive impact on exports.

“Yes, we couldn’t buy goods because the dollar was high but people saw a cheap naira as an opportunity to get goods from Nigeria.

“For the first time, you have a net export gain for Nigeria vis a vis her neighbouring countries, because you find out that what makes Nigerians go to their neighbours is now making them come to Nigeria.”

Bomodi said the devaluation of the naira has boosted the local economy.

“Even, a devalued naira is an advantage for export, So it’s not such a negative thing but in trade, you have to balance both ends,” he said.

“Here at Seme-Krake border post, we have our primary responsibility as customs which is facilitation of legitimate trade.

“We deal with a lot of imports and exports and enforce fiscal policies of the government, particularly in area of prohibition.

“In Seme-Krake, the Lagos-Abidjan corridor is considered as the most viable trade corridor in West Africa and indeed the whole of Africa.

“So viable, so strategic to the economic development of Africa that the European Union and other international agencies are ready to cough out a humongous amount of money to develop infrastructure around this axis.”

On June 14, 2023, the Central Bank of Nigeria (CBN) announced the unification of all segments of the foreign exchange (FX) market.

The apex bank said all FX windows are now collapsed into the investors and exporters (I&E) window.

Since the float of the naira, there have been consistent fluctuations in the FX market.

On June 7, the naira appreciated to N1,490 per dollar at the parallel section of the FX market from N1,500/$ on June 5.

Within the same period, the naira appreciated at the official window to close at N1,483.29/$, from N1,488.60/$.