Peg customs duty FX rate at N1,000/$, CPPE tells CBN

The Centre for the Promotion of Private Enterprise (CPPE), has urged the Central Bank of Nigeria (CBN) to peg the customs duty exchange rate at N1,000 per dollar for the rest of the year.

In a statement, Muda Yusuf, director of CPPE, said the current customs duty rate of N1,488.9/$ is too high in the context of the current inflation and difficulties facing businesses and citizens.

Yusuf said the proposition aligns with the federal government’s commitment to ease the current hardships on the citizens and the burden on businesses.

“The high exchange rate for import duty assessment is fueling the already high inflation, increasing production and operating costs for manufacturers and other businesses,” he said.

“It is worsening the cost-of-living crisis and putting thousands of maritime sector jobs at risk.

“There is also the added risk of cargo diversion to neighboring countries and heightened smuggling which can jeopardise the realisation of customs revenue target.

“The current customs duty exchange rate of N1488.9 per dollar, is still too high in the context of the current galloping inflation and difficulties facing businesses and the citizens.”

According to Yusuf, abandoned cargo was on the increase as a consequence of escalating trade costs.

“Pegging the customs duty exchange rate resonates with the present intervention measures to mitigate the current hardships in the country,” he said.

“Besides, this proposition does not in any way detract from the economic reform agenda of the present administration.”

Yusuf said his recommendation would complement the economic transformation measures “because of the expected positive impact on competitiveness, productivity, cost reduction, deceleration of inflation and employment generation.”