Nigeria: CPPE Advocates for CBN to Fix Customs Duty Exchange Rate at N1000/$

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The Centre for the Promotion of Private Enterprise (CPPE) has urged the Central Bank of Nigeria (CBN) to set the customs duty exchange rate at N1000 per dollar for the remainder of the year. Dr. Muda Yusuf, the founder of CPPE, conveyed this recommendation on Sunday in Lagos through a statement.

Yusuf emphasized that this plea aligns with the Federal Government’s commitment to alleviating the current hardships faced by citizens and businesses. He applauded the CBN’s decision to approve the use of the exchange rate indicated on import documentation (Form M) at the beginning of import transactions, seeing it as a positive response to investors’ concerns and a step toward reducing uncertainty surrounding imports and related transactions.

However, Yusuf pointed out that this intervention fails to address the significant issue of the exorbitant cost of cargo clearance at ports, which has surged by over 40% in the past two months. The high exchange rate for import duty assessment exacerbates inflation, elevates production and operational expenses for manufacturers and businesses, and contributes to the rising cost of living, risking thousands of maritime sector jobs.

He warned of the repercussions, including increased instances of abandoned cargo due to escalating trade costs, which are detrimental to the economy’s recovery, growth, inclusivity, and social stability goals.

Yusuf stressed that pegging the customs duty exchange rate at N1000/$ would be in line with current intervention measures aimed at mitigating hardships in the country. He emphasized that this proposal does not undermine the government’s economic reform agenda but rather complements it by enhancing competitiveness, productivity, cost reduction, inflation deceleration, and employment generation.

The CPPE’s call for action reflects its commitment to fostering an environment conducive to economic recovery, growth, and stability amidst ongoing challenges.

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