Senior maritime journalists under the aegis of League of Maritime Editors (LOME) have condemned the new exchange rate used in calculating import duty by the Nigeria Customs Service (NCS) and charged the relevant government agencies to go back to the drawing board to review the directive in the interest of Nigerians and businesses.
They expressed concern that the new rate which was released by the Central Bank of Nigeria (CBN) for implementation by the NCS is insensitive and counterproductive under current economic realities, noting that it would further worsen the already bad situation and hardship faced by majority of Nigerians, whose purchasing power had been reduced to an all-time low.
This followed reports that the Customs Service will now calculate duties on imports at the rate of N1,356.883/dollar, “even as the exchange rate keeps deteriorating most erratically, under the President Bola Ahmed Tinubu’s administration and the NCS’s management’s quest to meet its bloated revenue targets for the year.
In a statement signed by the League’s President, Timothy Okorocha and Secretary, Felix Kumuyi and made available to journalists by the Public Relations Officer (PRO), Francis Ngwoke, the group described the rate as outrageous given its obvious consequences on the national economy.
The League argued that given the prevailing economic conditions such as the current petroleum price hike under the deregulation policy and its consequences on the cost of transportation, the new duty rate is destined to be counterproductive.
It further maintained that importers and manufacturers would be forced to increase prices of their goods, which would have a retroactive effect on the prices of goods and services across board and further worsen the living conditions of Nigerians.
“There is hardly any day that prices of food items and other goods in the market do not increase. As such, the new rate to be implemented by the Customs in calculating duties will worsen the situation.
“Economic policies are introduced for the good of the people and not to worsen their living conditions and expose them to extreme poverty. Every policy must have a human face. This current policy is certainly against the common interest of the people because it will further compound their woes and send them to early graves following price explosions being experienced in the market,” the statement reads.
Noting that the Customs management is simply implementing the directive, the League advised the Federal Ministry of Finance and management of the CBN to always seek the input of the Customs Service during policy formulation to have an informed direction in their policy thrusts.
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It also pointed out that such a high rate of duties will also discourage imports, a development that could lead to scarcity of essential goods in the market and its multiplier effects on prices.
“The new rate will stifle trade rather than promote trade. Cargo throughput will be affected; it will hit everyone, including manufacturers, who will be forced to raise prices of their products as they are doing now. In such a situation, only very few people and the rich will be able to afford these goods.
“What this means is that the policy will only favour the rich who can pay for anything and leave many Nigerians to their fate. And we believe that this is not what President Ahmed Bola Tinubu’s government stands for.
“We think that the government, the NCS, Ministry of Finance and CBN should sit down and do a quick review. Every policy must promote the economic wellness of the people and not send them to their early graves.
“If the Federal Government insists on implementing the new rate, some importers will have no choice but to pay, but it should remember that Nigerians will be the ones to suffer in the end because the importers will ensure that they recover their investments,” the statement added.