Fresh inflation loading as Customs begins implementation of N1,413 per dollar as import duties exchange rate

The Nigeria Customs Service (NCS) has sparked nationwide apprehension with its adoption of a new spot rate, setting import duties at N1,413 to one United States dollar. This development has reignited concerns over the already prevalent hunger crisis gripping the nation.

The Customs Service, in defense of the revised import rate, clarifies that it adheres to the official exchange rate determined by the Central Bank of Nigeria (CBN), asserting that it does not set the rate independently.

Economic analysts weigh in on the implications of this adjustment, emphasizing the potential for market stabilization in the long term but expressing immediate worries over heightened costs of imported goods. They stress the significance of transparent procedures in determining and applying spot rates to ensure fairness and accuracy in customs valuation.

Derinde Aro, Managing Director of Derindos Ventures Limited, warns of imminent price hikes, particularly affecting essential commodities, as Nigeria heavily relies on imports. He advocates for policies promoting the importation of knockdown vehicles to create local assembly jobs and mitigate unemployment.

Emmanuel Onwubiko, Executive Director of Human Rights Writers Association of Nigeria (HURIWA), condemns the elevated import tariffs, deeming them detrimental to business growth and accessibility of goods for ordinary Nigerians. He criticizes what he perceives as the CBN’s failure to safeguard the national currency and accuses the government of yielding to external pressures to impose higher taxes.

Jide Ojo, a legal practitioner and public analyst, denounces the timing of the tariff increase, citing its exacerbating effect on the populace amidst prevailing economic hardships and escalating insecurity. He urges the government to prioritize the welfare and security of its citizens over revenue generation strategies.

As the nation grapples with mounting economic challenges and social unrest, the implications of the import duty surge underscore the pressing need for holistic policies aimed at fostering sustainable development and addressing the plight of vulnerable populations.