Inflation Rises For 5 Straight Months To 22.42%

Customs duty payable on imported items at the nation’s seaports has increased after the Central Bank of Nigeria (CBN), adjusted the the official exchange rate used by the Nigeria Customs Service (NCS), to calculate import duties and levies from N589/$1 to N770.88/$1.

LEADERSHIP reports that the CBN had on June 24th, adjusted the exchange rate from N422.30/$1 to N589/$1.

However, the Customs Service had in a circular to clearing agents associations in the country informed them about the exchange rate policy and the CBN directive to implement it.

In a circular exclusively obtained by LEADERSHIP, titled, ‘Implementation of the floating foreign exchange rate regime,’ the Customs Area Controllers, Tin-Can Island Command of the NCS, Compt. Kayode Oloyede, said the CBN has mandated the service to begin implementation of the floating exchange rate policy.

The circular dated 5th July, 2023, reads, “In recent times, there has been a fluctuation of the exchange rate for trade as a result of the introduction of the Floating Exchange Rate Regime instituted by the Central Bank of Nigeria.

“Against this backdrop, the Central Bank of Nigeria has instructed all Ministries, Departments and Agencies (MDAs’) of Government, including the Nigeria Customs Service to, hitherto, implement this policy. You are hereby notified of this new policy direction. Accept my warmest regards, please.”

However, maritime experts have argued that the new customs exchange rate effectively means there would be an increase in import duty payable by clearing agents to the Customs service and would overall affect price of goods at the market.

Confirming the increment, the public relations officer, Tin Can Island chapter of the Association of Nigerian Licenced Customs Agents (ANLCA), Comrade Onome Monije, rued the increment, saying clearing agents will now pay more for cargo clearance at the various seaports.

She said the increment will affect vehicle clearance, saying clearing agents should engage their clients to forestall disagreement.

“The federal government has increased the  Dollar exchange rate, from N422.30 to N589.45 now we are at N770.88 to a dollar. What it implies in simple terms is that, if clearing agents have a Debit Note that has not been paid on the system or Pre-Arrival Assessment Results (PAAR) or they have given you the value and you have not captured, it has affected you directly.”

“We just believe that maybe with time, we will see low exchange rate and it will become beneficial to the importers as well because once there is a change in the portal, there is nothing anybody can do about it. But if you have captured or access your work, you are good to go and your consignment would be released for you if you don’t have any infraction.”

She explained that only clearing agents that has done capturing of their consignment  would pay with the old price.

“Whether you have collected your value, whether you have a PAAR, if you have not done your assessment as at now, you can’t capture with that old rate. Especially for the Roll On Roll Off (RORO) or those that are doing PAAR door to door. It’s a Federal government policy. We stakeholders can’t do anything for now, because it’s the prerogative of FG to intervene and  stabilize the foreign exchange market,” she stated.

Speaking to LEADERSHIP, the public relations officer, African Association of Professional Freight Forwarders of Nigeria (APFFLON), Tin Can Island Port Complex, Clinton Okoro, asked the federal government to suspend the new adjustment to relief hardship on the people.

According to Okoro, Nigeria as a consuming nation cannot afford a high exchange rate for cargo clearance as it will affect the people’s standard of living.

He said, “I don’t understand this unfriendly policies that is coming from the federal government. Also, I am not aware whether Customs and finance ministry met with the stakeholders before this decision was taken.

“Just about 10 days ago, there was a change because what was in the system was N422.3 but, we woke up on June 24th to see N589/$1 in the system. We have been trying to see how we will manage the situation because lots of pressure are on us from the importers as they thought clearing agents are the one manipulating the adjustment.”

“Again, this morning, the first thing I got at a DTI cafe where I went to capture a job was another adjustment. I don’t know how to go about it because no one is informed of the adjustment.”

Speaking on the implication of the exchange rate adjustment, he said, “the duty payable on cargoes has changed. It is now terribly high. Government should do a round table discussion with stakeholders and see how to mitigate further adjustment because of the hardship on people.

“Nigeria is a consuming nation, they should see how to reduce the hardship on the people because it’s telling on the masses. They should suspend it. The CG of customs should be called to suspend it,” he stated.