NPA Explains Why It Charges in Dollar as EFCC Begins Arresting Those Spoiling Naira
- Nigerian Ports Authority has explained why it will continue to charge in Naira despite CBN’s directive to act otherwise
- It stated that the authority deals in international transactions involving internationally accepted medium of exchange
- This comes after the EFCC began targeting individuals involved in illegal dollar transactions to relieve pressure on the naira
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The Nigerian Ports Authority has revealed that it bills operators in US dollars because shipping is an international industry, and the dollar is a widely accepted form of payment.
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It made this known as the Economic and Financial Crimes Commission (EFCC) assembled a 7,000-person special task force to operate across its 14 zonal commands, targeting individuals involved in illegal dollar transactions to relieve pressure on the naira.
The anti-graft agency's spokesperson, Dele Oyewale, said the committee invited the owners of private colleges and other institutions that collect tuition in dollars.
This followed the failure of multiple policies to revamp the naira's struggles against the dollar.
The value of the Nigerian naira recently fell to over N1,500 dollars in the official market.
The need to charge in dollar
Sarah Ballah, the NPA's acting general manager of corporate and strategic communications, clarified to The Punch the need to charge in foreign currencies.
She said:
“First and foremost, NPA transactions are international because maritime businesses are international. And since we are dealing with an international community, some transactions have to be done based on the internationally accepted medium of exchange. The dollar is a common medium of international exchange.
“What the government said was for local business transactions. There is no way you can use naira to buy something in Europe. And some of the things that NPA does, like the purchase of vessels and stuff like that, are done in dollars because we are dealing with an international community.”
However, she added that some transactions involving the barge operator can be paid in dollars or its naira equivalent based on the existing exchange rate.
CBN increases official exchange rate to clear goods
Legit.ng reported that the Central Bank of Nigeria (CBN) has increased the exchange rate for calculating customs duties at the nation's seaports for the third time this year.
Information from the Nigeria Customs Service's official website indicates that on Friday, February 9, the exchange rate was reviewed upward to N1,413.62/$ from the earlier N1,417.635/$.
Legit.ng had earlier reported that the Central Bank of Nigeria (CBN) readjusted the official exchange rate on the Customs platform, the second review in less than 24 hours.
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Source: Legit.ng
