Once again, the Central Bank of Nigeria (CBN) has elevated the exchange rate used to calculate customs duties, marking the fourth increase within a mere 10-day period.
The latest adjustment, revealed on February 12, saw the rate climb from 1,417.635/$ to N1,444.56/$, as reported by the Nigeria Customs Service’s official trade portal.
This surge, amounting to a 1.9% hike, adds to the financial strain on importers and manufacturers relying on seaport imports, as their clearance costs surge alongside the benchmarked exchange rate.
The Sea Empowerment Research Centre (SERC) has urged the Minister of Finance, Wale Edun, to intervene, calling for a halt to the recurrent exchange rate increments imposed by the CBN.
Amidst rising concerns, stakeholders voice apprehension over the economic repercussions, emphasizing the potential inflationary pressures and adverse effects on trade and profitability.
Eugene Nweke, the head of research at the center, highlighted the inadequacy of dispensing fiscal and monetary policies without incorporating a statutory feedback mechanism, a departure from President Bola Tinubu’s renewed hope mantra.
Nweke, in a statement made available to newsmen, stressed the importance of government investigating the number of businesses shuttering, the frequency of downsizing, and the growing population of unemployed Nigerians on a weekly, monthly, and quarterly basis
“How stable is the labour market under the prevailing circumstances; how has the inflation rate affected the purchasing power of the citizenry; the contributory effect of this policy/increments to the ailing economic hardship and poverty in the land; its contributory effect to the insecurity in the land,” Nweke, former president of National Association of Government Approved Freight Forwarders (NAGAFF), stated.
The frequency of these adjustments is stirring unease, with fears mounting over the viability of import businesses and the burgeoning backlog of cargo awaiting clearance at the ports.
As importers grapple with escalating costs and logistical challenges, calls for governmental intervention to alleviate the strain and stabilize the forex environment grow loude.
