The Central Bank of Nigeria (CBN), in a surprising move, has given the approval to a staggering 43 percent increase in the import duty rate, leaving importers and traders stunned.
Previously set at N951.842 per $1 as of December 2024, the exchange rate for duty collection has suddenly spiked to N1356.42, alarming stakeholders and sparking concerns about its impact on the economy, as reported by Vanguard.
Dr. Muda Yusuf, CEO of the Center for the Promotion of Private Enterprises (CPPE), expressed shock at the development, emphasizing its potential to worsen the already challenging economic situation.
He questioned whether the Governor of the CBN considered the implications of such actions.
Yusuf warned against the consequences of this increase, anticipating a significant impact on the volume of trade, transportation costs, shipment expenses, and clearing costs.
He highlighted the potential slowdown in maritime sector activities, which have already seen a reduction.
Former Executive Secretary of the Nigerian Shippers Council, Mr. Hassan Bello, echoed these concerns, emphasizing that the depreciating Naira against the Dollar affects every sector of the economy.
He canvassed for increased exports to counterbalance the impact of the exchange rate depreciation.
As stakeholders brace for the fallout, the unexpected surge in import duty raises fears of a detrimental impact on both the economy and citizens, with warnings against further upward adjustments in the exchange rate for import duty computation.
