Mr. Peter Obi, the 2023 presidential candidate of the Labour Party, has launched a critique against the Federal Government’s customs duty policies amidst the Central Bank of Nigeria’s (CBN) fifth exchange rate adjustment in 2024.
His remarks come as importers grapple with the mounting challenges posed by fluctuating exchange rates and arbitrary customs duty charges.
The latest adjustment by the CBN, soaring to N1481.482/$1 on February 14, marks a 2.56% surge from the previous adjustment, further exacerbating the burdens on businesses. Since Chief Tinubu’s administration began in May 2023, exchange rates have oscillated significantly from N422.30/$ to the current high, presenting a turbulent landscape for import-dependent enterprises.
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Mr. Obi’s criticisms echo the sentiments of many within the business community, who fear the adverse impacts of the government’s policies on trade and economic stability. He lambasted the administration for its failure to address inconsistencies in customs duties promptly, emphasizing the grave consequences for businesses and the broader economy.
“Inconsistencies in duty charges are now negatively impacting businesses and the cost of items, posing a huge danger to the economy,” Mr. Obi asserted, positioning the issue as a critical threat to Nigeria’s economic well-being.
The former chairman of the Association of Nigeria Licensed Customs Agents (ANLCA), Bisiriyu Lasisi Fanu last week highlighted the broader ramifications of the CBN’s actions. Fanu warned that frequent adjustments, driven by high FX rates, would inevitably permeate all sectors of the market, ultimately burdening consumers with potential price hikes.
“The frequency at which the CBN is adjusting the exchange rate has become worrisome,” Fanu remarked, echoing the logistical challenges faced by importers grappling with sudden cost differentials.
Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), underscored the detrimental impact of the frequent adjustments on importers. He emphasized that the escalating costs of imports would further strain businesses, leading to reduced trade opportunities and stifled economic growth.
As stakeholders grapple with the implications of escalating duty charges and exchange rate adjustments, Mr. Obi’s message underscores the pressing need for decisive action to alleviate the burden on businesses and mitigate adverse effects on the Nigerian economy.
In response to these concerns, stakeholders continue to advocate for government intervention to streamline customs duties, provide clarity in policies, and create a conducive environment for businesses to thrive.
