The Centre for the Promotion of Private Enterprise (CPPE) is urging the federal government to fix the foreign exchange rate for customs duty at N1,000 per dollar for the next six months. Currently, the Nigeria Customs Service (NCS) portal lists the customs duty exchange rate at N1,578/$.
According to Muda Yusuf, CPPE’s CEO, the high exchange rate is exacerbating inflation, increasing production costs, and worsening the cost-of-living crisis. This situation puts maritime sector jobs and investments at risk, weakens investor confidence, and may lead to cargo diversion and smuggling, jeopardizing customs revenue targets.
Yusuf argues that pegging the customs duty exchange rate at N1,000/$ would alleviate hardships on citizens and businesses, aligning with the government’s commitment to easing economic burdens. He notes that the Presidential Committee on Fiscal Policy and Tax Reforms and the Organized Private Sector have made similar recommendations.
Addressing concerns, Yusuf clarifies that adopting a lower exchange rate for customs duty computations would not undermine ongoing foreign exchange reforms. He distinguishes between foreign exchange policy and trade policy, emphasizing that the Central Bank of Nigeria’s responsibility ends with Form M opening for importers, while trade-related matters fall under the Federal Ministry of Finance and Trade and Investment.
