The Centre for the Promotion of Private Enterprise (CPPE) has expressed concern over the unpredictable exchange rate for cargo clearance, which is exacerbating the cost-of-living crisis in Nigeria.
The CPPE is advocating for a policy adjustment to peg the customs duty exchange rate at N1000/$ for the next six months to address the challenges faced by businesses and individuals.
The Director/CEO of the Centre, Dr Muda Yusuf, in a statement highlighted that the current customs duty exchange rate of N1578/$, which changes almost weekly, is fueling inflation, increasing production and operating costs, and putting maritime sector jobs and investments at risk.
The CPPE believes that a fixed exchange rate for customs duty will help to alleviate the hardships on citizens and businesses, and is in line with the federal government’s commitment to addressing the cost-of-living crisis.
The CPPE’s proposition is not a request for a concessionary exchange rate for forex allocation, but rather a trade policy matter that should be within the remit of the Federal Ministry of Finance and the Federal Ministry of Trade and Investment.
The Centre is calling for the Central Bank of Nigeria (CBN) to focus on foreign exchange policy, while trade policy issues are handled by the relevant fiscal authorities.
To permanently address the matter, the CPPE suggests amending the Customs Act to move the responsibility of determining the applicable exchange rate for import duty payment to the fiscal authorities.
This will bring the rates in alignment with the extant trade policy direction of the government and remove the current uncertainty around international trade.
The CPPE’s call for policy adjustments is supported by the Presidential Committee on Fiscal Policy and Tax Reforms, as well as the Organized Private Sector (OPS).
The Centre believes that localizing and adapting economic policy models to Nigeria’s peculiar circumstances is crucial to addressing the challenges faced by the country.
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