IMPORTERS AND CLEARING AGENTS ARE EXPRESSING THEIR DISSATISFACTION WITH THE DUTY INCREASE IMPLEMENTED BY THE GOVERNMENT OF TINUBU.

Stakeholders within the maritime sector have expressed strong disapproval of the newly adjusted customs duty exchange rates by the Nigeria Customs Service (NCS). Critics argue that the hike in import duty is detrimental, leading to increased inflation and a further decline in the purchasing power of Nigeria’s impoverished population.

Prince Olayieola Shitti, the former president of the Association of Nigerian Licensed Customs Agents (ANLCA), described the increase as unfavorable for importers, clearing agents, port users, stakeholders, operators, and maritime businesses. He emphasized that the sudden increment poses challenges for those with pending containers and goods at the port.

This development follows the recent decision by the Federal Government, facilitated through the Central Bank of Nigeria (CBN), to raise the exchange rate for cargo clearance from N952 to N1,356 per dollar. This adjustment results in a notable rise in payable import duty.

Shitti highlighted the negative impact on importers and clearing agents, with many struggling to cope with the abrupt surge in duty payable. The sentiment echoed by stakeholders indicates concerns about the consequences of this Customs duty hike on the overall maritime industry, potentially fostering increased inflation rates and operational challenges.

Okoro Nkem, an importer and exporter specializing in automobiles, emphasized that the new Customs duty regime could encourage smuggling and divert cargoes meant for the Nigerian market to neighboring countries’ ports. He expressed skepticism about importers breaking even with the elevated exchange rate, further complicating the already challenging business environment.

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The Federal Government’s decision to adjust the exchange rate for cargo clearance has sparked criticism and raised concerns about its potential repercussions on trade dynamics and economic activities within the maritime sector.