- Federal Government revises Nigeria Customs Service’s duty collection exchange rate twice within 24 hours, sparking concerns among freight forwarders
- Freight forwarding community, especially major importers like Manufacturers Association of Nigeria, panics over potential ripple effect on importation costs
The Federal Government has revised the exchange rate for the Nigeria Customs Service’s duty collection for the second time within 24 hours. The fluctuation in rates is adding to the challenges faced by freight forwarders, especially members of the Manufacturers Association of Nigeria (MAN), who are major importers.
Initially set at N953 per dollar at the end of January, the importation exchange rate significantly increased to N1,356 per dollar on a Friday morning. Surprisingly, however, it underwent another revision by Saturday morning, reaching N1,413.62 per dollar.
This sudden adjustment has sparked panic among the freight forwarding community, anticipating a ripple effect on the cost of importation. As a result, the market’s overall cost of goods and services is expected to surge.
Expressing concern over the latest hike, Dr. Eugene Nweke, a former National President of the National Association of Government Approved Freight Forwarders (NAGAFF), highlighted the potential “overwhelming consequences” on the public. Nweke referred to insights shared by the Sea Empowerment Research Center during the World Economic Forum (WEF), emphasizing the global challenges a drop in trade volumes faced in 2022/2023.
Quoting the Director-General of the World Trade Organization (WTO), Dr. Okonja Iweala, Nweke underscored the need for well-balanced fiscal policies to drive freight logistics chains and enhance national trade volumes. He urged the Coordinating Minister to intervene, directing the Central Bank of Nigeria (CBN) to cease the frequent increments in the exchange rate for customs duty assessment.
In response to the escalating situation, the leadership of the Association of Nigerian Licensed Customs Agents (ANLCA) reportedly plans to engage with the CBN to advocate for a reduction in the exchange rate. The goal is to alleviate the strain on importers and contribute to the well-being of the Nigerian populace, echoing the spirit of the renewed hope mantra.