The Centre for the Promotion of Private Enterprise (CPPE) has reaffirmed its appeal for the Nigerian government to maintain the customs import duty exchange rate at N1,000 per dollar for at least six months.
Muda Yusuf, the CPPE director, confirmed this in a statement on Sunday.
The economic think tank group stated that the government must address the unpredictable nature of the country’s exchange rate for cargo clearance in addition to budgetary measures to alleviate Nigeria’s cost-of-living crisis.
According to the CPPE, the country’s high and unpredictable exchange rate for assessing import duties fuels inflation, production expenses, and operating costs for manufacturers and firms.
“The CPPE urges the presidency to set the customs duty exchange rate at N1000/$ for the next six months through an Executive Order.”
“This is consistent with the current federal government’s commitment to easing existing challenges on residents and the burden on businesses. It is encouraging that the Presidential Committee on Fiscal Policy and Tax Reforms has issued a similar proposal. The Organized Private Sector (OPS) has actively campaigned in the same direction.
“The current customs duty exchange rate for the Nigeria Customs Service portal is N1,578 per dollar. This rate has fluctuated virtually weekly, which is not helpful for the investing climate.
“It is crucial to note that this proposal does not interfere with the current administration’s ongoing foreign exchange reforms. Contrary to certain worries, using a lower exchange rate to calculate customs duties would not jeopardize present foreign exchange reforms. It is not a request for a reduced exchange rate for forex allocation.
“We’re dealing with two different situations here. The first is about foreign exchange policy, whereas the second is entirely about trade policy. The CBN’s role should end at the moment of opening Form M for importers, in accordance with existing foreign exchange policies. All other foreign trade-related concerns should be handled by the Federal Ministries of Finance and Trade and Investment. These are the institutions that are legally accountable for trade policy concerns. The CBN’s assessment of the customs duty exchange rate is an incursion into trade policy space that must be remedied immediately,” he said.
The development comes as the federal government recently announced a 150-day import duty waiver for certain essential foods.
Nigeria’s inflation fell to 33.95 percent in July 2024, the first dip since 2022.
 has reaffirmed its appeal for the Nigerian government to maintain the customs import duty exchange rate at N1,000 per dollar for at least six months.){kind=link}