N800/$1: Group Speaks on Adopting New Exchange Rate for Customs Import Duty

• Fiscal policy and tax changes committee is proposing N800/$1 for customs import duty payments for the rest of the year
• The committee's chairman, Taiwo Oyedele, opined that a stable exchange rate would help for effective operations
• This came as the fluctuating customs exchange rate hit a high of N1,481.482/$1 earlier in the year

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The presidential committee on fiscal policy and tax changes has suggested the adoption of N800/$1 for calculating customs import duty payments.

The committee's chairman, Taiwo Oyedele, stated this in Lagos on Thursday at a meeting with the media regarding the work of the tax panel.

As per his statement, the proposal originated from the unsettling effects of the declining value of the naira and additional fluctuations in the foreign currency market.

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The development has partially eliminated the chance of attaining a steady exchange rate, which is essential for the import community to operate effectively.

If the government approves the revised rate, Oyedele said the consumer costs for imported items will likely decrease significantly.

Unstable rate

Over the past year, the Central Bank of Nigeria (CBN) has repeatedly moved the Customs exchange rate upward, reaching as high as N1,481.482/$1 earlier in the year, according to the Nigerian trade portal.

The unstable exchange rate has caused immense pain for Nigerian importers and agents.

Oyedele said:

“When we did the budget, we said naira to the dollar would be N800, now it is 1,000 something. People need to plan.

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“We are saying that the government can sign an order that says N800 per dollar should be used for paying Customs duties for the rest of the year till December. So, we have proposed N800.

The committee's recommendation aligns with the views of many industry participants, who advocated for exchange rate hedging for customs duties to facilitate planning.

Daily Sun reported that Dr Farinto Kayode, the former acting national president of the Association of National Licensed Customs Agents (ANLCA), said the proposal is a comforting development.

However, he contended that N1,000/$1 was more practical and that N800/$1 might not work.

“It is a good thing that the committee is thinking in that direction, meaning that there is still light after the tunnel because our import percentage continues to drop daily."

Customs suspends sale of seized food items

Legit.ng earlier reported that following the stampede that claimed seven lives in Lagos, including All Progressives Congress (APC) member, Funmilayo Comfort Adebanjo, the Nigeria Customs Service (NCS) halted the sale of food products confiscated.

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This was revealed by the spokesperson for Customs, Abdullahi Maiwada, in a statement on Monday, February 26, via the NCS X handle (previously known as Twitter) @CustomsNG.

According to Maiwada, the decision was made after a stampede that occurred on Friday, February 23, at NCS Old Zonal Headquarters in the Yaba neighborhood of Lagos state.

Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng