Nigeria: Presidential Committee Proposes N800/1$ Customs Duty Rate

Nigeria: Presidential Committee Proposes N800/1$ Customs Duty Rate. The presidential committee on fiscal policy and tax reforms has proposed a lower exchange rate for computing Customs import duty payments.

To mitigate the negative impact of the falling naira and other volatilities in the foreign exchange market, which have made it almost impossible to realize a stable exchange rate, there has been a proposal to set the exchange rate at N800/$1.

The exchange rate which had been previously adjusted by the Central Bank of Nigeria (CBN), reaching up to N1,481.482/$1 is now being considered to receive another review that would lower it to N800/$1.

Nigeria: Presidential Committee Proposes N800/1$ Customs Duty Rate

The Argument

The federal government has been urged to accept the new exchange rate so that the import community needs to function efficiently.

According to Taiwo Oyedele, chairman of the committee, if the new rate is adopted, it could trigger a significant fall in the price of imported goods for consumers.

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The proposal aligns with the prevalent opinion of industry stakeholders who demanded the hedging of the exchange rate for Customs duties to allow for planning.

Weighing in on the matter, the former acting National President of Association National Licensed Customs Agents (ANLCA), Dr. Farinto Kayode agrees that the proposition is a great idea while also arguing that it may not be as realistic as making it N1,000/$1.

According to him, the nation’s import percentage is not encouraging, and an adjustment from the previous exchange rate is exactly what is needed.

The government should however, make it N1000/$1. A figure that would be a flat rate for all Customs operations between now and the end of the year.

He mentioned that, by then, Nigeria’s import percentage would have started experiencing a lot of positive changes.

Also tendering his own opinion, an importer and President, Association of Motor Dealers of Nigeria (AMDON), Prince Ajibola Adedoyin, disclosed that the adjustment would improve things in the manufacturing and the transportation sector.

According to him, the high exchange rate is one of the factors that inflated the cost of vehicles, which means a reduction will enable an increase in the number of Nigerians buying cars.


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