The Centre for the Promotion of Private Enterprise (CPPE) has expressed its dismay at the frequent changes in the customs duty exchange rate, stating that it is putting a heavy burden on the business community and dragging down the country’s economy.
In a statement, Dr. Muda Yusuf, the CEO of CPPE, highlighted that the constant fluctuations in the exchange rate have resulted in high volatility in cargo clearing costs, exacerbating inflationary pressures and increasing investment risk, particularly in the real sector of the economy.
Dr. Yusuf emphasized that the rapid changes in the exchange rate, with twenty-eight adjustments in the first quarter of this year and close to ten more expected in April, have created a challenging environment for businesses to operate in.
The recent jump in the rate to N1373.65/$ from less than N1200/$ further adds to the uncertainty.
The CPPE called on the Central Bank of Nigeria (CBN) to implement a framework to reduce the volatility in the customs duty exchange rate, aligning with the government’s goal of boosting investor confidence and driving economic growth.
Dr. Yusuf suggested adopting a quarterly customs duty exchange rate, starting at N1000/$, after consulting with fiscal authorities to consider trade policy implications.
He stressed the importance of coordination between fiscal and monetary authorities to ensure stability and predictability in the exchange rate, as the current situation is hindering investment planning and confidence.
The CPPE believes that a more stable exchange rate will support the country’s growth aspirations and create a more conducive environment for businesses to thrive
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