- The organized private sector and Peter Obi oppose the Central Bank of Nigeria’s frequent adjustments in Customs duty rates
- Segun Ajayi-Kadir highlights the adverse effects of fluctuating import rates on manufacturers and advocates for stable import rates
The organized private sector, alongside Mr. Peter Obi, the Labour Party’s Presidential candidate in the 2023 elections, has voiced opposition to the Central Bank of Nigeria’s (CBN) frequent adjustments in Customs duty rates for imported goods.
CBN’s recent increase in import duty rates within a short span of less than 72 hours has raised concerns among importers, exacerbating uncertainty in the import sector.
Segun Ajayi-Kadir, Director General of the Manufacturers Association of Nigeria (MAN), emphasized the adverse effects of fluctuating import rates on businesses, particularly manufacturers. He advocated for stable import rates to provide a conducive environment for manufacturers and shield them from currency fluctuations.
Obi said; “I wish to urgently call on the Federal Government of Nigeria to end the inconsistency in duty charges as it is affecting the general business atmosphere in the country. The federal government should stop the arbitrary and ever-increasing customs duties as it is now negatively impacting businesses and the cost of items, and this portends a huge danger to the economy.
“A situation where at the point of initiating importation, Form M and other documents related to importation are based on a particular rate of exchange, for example, N1000 to $1, being the prevailing exchange rate at the time which the importer of goods was used to calculate the entire process, from the import initiation to receipt of goods in his warehouse.
“Then suddenly when the goods arrive in Nigeria, and duties are calculated at different rates, say N1400 to $1, it becomes a serious business challenge that results in business losses. Worse still, it directly fuels the inflationary spike which is the basis of increasing cost of goods and living,” Obi said.
Emphasizing the importance of supporting businesses, especially in the manufacturing sector, Obi stressed the need for government interventions to sustain economic growth. He underscored the pivotal role of small businesses as the primary engine of economic development and called for measures to keep them afloat amidst challenging economic conditions.