Import duties on goods at Nigerian ports have increased due to the Federal Government’s adjustment of the exchange rate for cargo clearance through the Central Bank of Nigeria (CBN).
The exchange rate for duty payment on imported vehicles, as seen on the Nigeria Customs Service portal, was raised from N783/$ to N952/$ on Thursday. This marks the fourth time this year that the exchange rate for cargo clearance has been adjusted.
The CBN had previously made adjustments in June, moving the exchange rate from N422.30/$1 to N589/$1. In July, it was adjusted to N770.88/$1, and in November, it was further adjusted to N783.174/$1. Importers and clearing agents are expressing concerns over the consequent increase in import duty and tariffs.
The Public Relations Officer of the Association of Registered Freight Forwarders of Nigeria, Taiwo Fatomilola, noted that the duty on a 40ft container increased from N7 million on Wednesday to N9 million on Thursday. He also mentioned a N350,000 increase in the duty on each car. Jonathan Nicol, a chieftain of the Shippers Association of Lagos State, expressed that this development would negatively impact businesses, leading to increased costs and inducing inflation.
Nicol added that more cargo might be diverted to other locations, causing a potential decrease in activities at the nation’s ports. He criticized the timing, stating that the government’s move during the Christmas festive period could impact the cost of doing business and contribute to inflation. Onome Monije, a chieftain of the Association of Nigerian Licensed Customs Agents, mentioned the potential impact on unpaid Debit Notes in the system.
Lawal Wasiu, the CEO of LWL Concept, echoed concerns about discouraging importation and the potential impact on accessing the Nigerian market, particularly for pharmaceutical products. The adjustments in the exchange rate for cargo clearance continue to generate reactions from industry stakeholders who anticipate broader implications on trade and the economy.
