CPPE tasks CBN to peg import duty exchange rate at N1000/$

The Centre for the Promotion of Private Enterprise (CPPE) has urged the Central Bank of Nigeria (CBN) to peg the import duty exchange rate at N1000/$ for the rest of the year in line with the Federal Government’s commitment to ease the current hardship on citizens and the burden on businesses.
The CPPE, while welcoming the decision of the CBN to approve the use of the exchange rate reflected on the import documentation (Form M) at the onset of the import transaction, said the intervention did not address the currently prohibitive cost of cargo clearance at the ports, which had risen by over 40 per cent in the last two months.
Chief Executive Officer of CPPE, Dr Muda Yusuf, who is also a board member of the Nigerian Customs Service (NCS), said the intervention, which reduced the customs duty exchange rate to N1488.9/$, is not sufficient to address the soaring inflation.
He said the high exchange rate for import duty assessment is fueling the already-high inflation as well as increasing production and operating costs for manufacturers and other businesses.
Yusuf also frowned at the added risk of cargo diversion to neighboring countries and heightened smuggling, which could jeopardise the realisation of the customs revenue target.
He lamented that the instances of abandoned cargo are on the increase because of escalating trade costs, noting that the challenges are not good outcomes for an economy seeking to ensure recovery, drive growth, promote inclusion and guarantee social stability.
The CPPE boss noted that businesses are currently grappling with multiple macroeconomic and structural headwinds, which are negatively impacting profitability, competitiveness, job creation, retention of existing jobs and business sustainability.
According to the CPPE boss, pegging the customs duty exchange rate resonates with the present intervention measures to mitigate the current hardships in the country.