Following the latest adjustment, the Lagos Chamber of Commerce and Industry said it expects the Central Bank of Nigeria to leave the Customs Rate on imports at a much more affordable level.
The LCCI said this in a press release issued late on Wednesday, by its Director General, Dr. Chinyere Almona.
She explained that an affordable rate would serve as a cushion for the pains importers are already suffering in terms of higher import prices due to recent supply chain disruptions caused by the war in Ukraine and more recently attacks at the Red Sea.
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Expectedly, the CBN has justified its stand on the Customs Rate, saying that it was simply following the official exchange rate of the Naira.
To this end, the LCCI called on the apex bank to stop the upward review of the customs rate and reverse it to a lower rate for the purpose of importation.
Almona restated: “This way, importers would be able to charge lower prices for their goods according to what costs they incur on the shipments. In addition, any fixed rate should be held for a specified time frame (e.g., quarterly) so people can plan. An element of predictability for planning purposes is highly desirable.
“We have always advocated that the government should stop subsidising consumption and invest such funds to subsidise production activities. A relief or palliative through import duties is more impactful as it affects the prices of goods consumed by more people than the transfers of cash to people as palliatives in the recent past.”
She added that having a fixed rate for import duties also helps businesses to plan ahead for their import portfolios, noting that as at present, if the CBN continues to adjust the Customs Rates according to the current volatility of the exchange rates, businesses would be at a loss about how to plan for the months ahead.
Almona reiterated that the CBN should fix a rate lower than what it is now and leave it for the purpose of importation.
The Eagle Online reports that the rate Customs evaluates imports to arrive at duties to pay is normally affected by the prevalent exchange rates against the Naira, which has suffered a hit against the major currencies, falling to as low as N1,900 against the Dollar and N2,250 against the Pound Sterling in the parallel market.
The volatility recorded with the exchange rates has made the CBN adjust the Customs Duty Rate up to six times in February alone.