Nigeria’s import dependent port system is presently challenged by unpredictable exchange rate regime that has caused a sharp decline in trade with attendant threats on the economy.
This has led to reduced commercial activities causing loss of jobs and setbacks on many fronts
Recently, the Presidential Committee on Fiscal Policy and Tax Reforms has recommended that the Federal Government adopt an exchange rate of N800 per one US dollar for computing Customs import duty.
This proposal was announced by the committee’s chairman, Taiwo Oyedele, during a press briefing in Lagos
Oyedele had highlighted the challenges businesses face due to the volatility of the foreign exchange (FX) market, which causes frequent changes in the import duty rate. He emphasised the need for stability to allow businesses to plan adequately.
“When we did the budget, we said naira to dollar will be N800, now it is 1,000 something. People need to plan.
“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,” he said.
This position has gained popularity in the business sector of the country as a quick fix measure capable of revamping the economy to the pre May 2023 era.
The chief executive officer of Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf has said the frequent changes in the customs duty exchange rate have become a huge burden on the business community.
This magazine posits that the federal government treats this issue as a matter of national emergency to reset the economy on the path of recovery before things degenerate from their present unpleasant state to a worse condition
