Imported Items To Get Cheaper As FG Committee Proposes New Custom Import Duty Rate To Clear Goods

• The Presidential Committee on Fiscal Policy and Tax Reforms, led by Taiwo Oyedele, has recommended a new custom import duty rate
• The new rate is below N1,000 and is expected to ease the challenges of doing business for companies
• The Nigerian customs dollar exchange rate to clear goods has been changed over 40 times in 2024 alone

The Presidential Committee on Fiscal Policy and Tax Reforms has proposed keeping the exchange rate for customs import duties at N800 per dollar for the remainder of 2024.

This change represents a significant departure from the current practice, where Customs duties are adjusted erratically, sometimes twice daily.

Checks show that so far, in 2024, the Central Bank of Nigeria has changed the customs duty exchange rate by more than 40 times.

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FG's committee recommends a fixed rate

Taiwo Oyedele, the head of the committee, recommended while speaking on the activities of the tax panel in Lagos.

According to him, the frequent changes in the import duty rate adopted by the Nigeria Customs Service (NCS) due to the volatility of the foreign exchange (FX) market do not allow for adequate business planning.

His words:

When we initially drafted the budget, we projected the naira to dollar exchange rate at N800. However, the current rate has exceeded N1,000.

"People need to plan ahead. Therefore, we are requesting the government to issue an order stating that, for the purpose of paying import duty, we will use N800 for the rest of the year, until December. This is our proposal."

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Customs current exchange rate

Reacting to the suggestion, Joe Madu, a licensed customs agent, told Legit.ng that the recommendation is the best option.

He said:

"Although the N800 per dollar remains high, fixing the rate will go a long way to help businesses plan and revive the economy. At least businesses can now fix prices for the imported items without fear of running into a loss."

This is not the first time recommendations have been put forward for a fixed customs duty exchange rate.

Legit.ng had earlier reported that Muda Yusuf, Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), said that Customs should set a quarterly exchange rate between N800/$ and N1000/$ for import duties assessment.

Meanwhile, checks on the federal government trade portal on Sunday, June 2, 2024, showed that the current Customs duty rate for importers is N1,482.982

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Peter Obi on new Customs exchange rate

Earlier, Legit.ng reported that the CBN also adjusted the NCS foreign exchange rate to clear imported goods at Nigerian ports.

Peter Obi reacted to the latest changes and expressed concerns that they could kill many businesses.

He further advised the government on actions to help the naira recover against the US dollar.

Source: Legit.ng