Victor Ezeja
Admin
Nigerian importers have decried the soaring costs of getting goods and commodities cleared from the country’s ports, pointing out that import duty has surged by over 200 per cent compared to previous rates, significantly impacting the cost of imported goods.
They lamented that the development which is the spin-off of the floating of the Naira against major foreign currencies, disproportionately affects Nigerian importers, as the country primarily relies on the import of various goods and commodities.
Prime Business Africa recalls that the Comptroller-General of Nigeria Customs Service (NCS), Bashir Adewale Adeniyi, last week, said the floating exchange rate was the major cause of the surge, stressing that nothing had changed in customs duty.
The Naira, which fell from about N450/dollar to an average of N760/dollar following the foreign exchange reforms of President Bola Tinubu, has continued to drop at the parallel market. The local currency plunged to 1045/dollar on Thursday.
Reacting to the development on behalf of importers, erstwhile acting President of the Association of Nigerian Licensed Customs Agents (ANLCA), Kayode Farinto, said the recent surge in import duty, due to volatile exchange rate, inevitably pushes the burden on the average consumer.
He said this is because the country is predominantly an importing nation, relying on international trade for a significant portion of its consumption needs.
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Farinto noted that within three to four months, customs had reviewed the duty about three times, urging the agency to consider the huge pain this causes the masses.
He said the cost of trade has always been a significant concern for importers and that sudden increase in import duty rates further exacerbates the challenge, stressing that the economic realities faced by importers in Nigeria directly impact their ability to source and supply affordable goods to meet the needs of the country’s population.
According to him, “The current exchange rate fluctuations have caused import duties to rise to unprecedented levels, making it increasingly difficult for importers to maintain competitive pricing while staying afloat in the market. The implications of this situation are far-reaching, as the increased import duty will ultimately translate to higher prices of imported goods, thus burdening the average consumer.
“It is important to highlight that importers play a crucial role in spurring economic growth, job creation, and ensuring a vibrant consumer market. However, escalating import duty rates threaten import-driven businesses, which will inevitably have a ripple effect on the economy.”
Farinto called on relevant authorities and stakeholders in the country to review the current import duty structure and devise comprehensive measures to address challenges.
