The continuous rise in import duty is hurting the importation of cargo into the country, with importers and clearing agents lamenting the high cost of shipment into Nigeria and clearing consignment at the ports across the country.
And with import volumes nose-diving, there are concerns about the ability of the Nigeria Customs Service (NCS) to meet its revenue target of N5.1trn projected by the Federal Government.
The Guardian gathered that with a decline in clearing activities, some agents and importers are already out of business, while some others continue to groan under the unpalatable condition.
Former Vice President of the Association of Nigerian Licensed Customs Agents (ANLCA), Kayode Farinto, expressed his concern about the dwindling level of importation, stating that most imports in recent times have been raw materials.
“These raw materials attract a lower duty rate of five per cent, which could further impact the N5.1trn revenue target for the NCS.”
To encourage importers and traders to continue their businesses, Farinto called on the Federal Government to introduce measures that would provide incentives.
“One of such measures could be reversing the calculation of Value Added Tax (VAT), which currently goes against the principles of international trade,” he stated.
On his part, a lawyer, Kehinde Bamiwola, urged the Federal Government to reduce import duties and taxes on imported goods.
Noting that the high rate of duty leads to increase smuggling by unpatriotic elements, he said the Federal Government should reduce Customs duties and tariffs on products not locally produced.
The Customs raised import duty rate not less than seven times last year. The most recent increase was in mid-December when the duty was calculated based on exchange rate of naira to dollar at N952/$ instead of the earlier N783/$.
Providing explanation for the adjustment, the Comptroller-General Customs, Adewale Bashir Adeniyi, said the recent hike in the exchange rate, which affected import and export transactions at the ports, was due to exchange rate adjustment by the Central Bank of Nigeria (CBN) and not Customs.
Adeniyi explained that due to the merger of the Forex market by the President Bola Tinubu administration, Customs cannot independently use exchange rates without recourse to the merged Forex window.
“What this means is that we cannot use exchange rates independently. We cannot use exchange rates not determined or specified through these merged Forex windows.
“We have nothing to do with whether the exchange rate goes up or down. We follow what is prescribed for us by the regulatory authority for monetary affairs, which is the CBN,” he said.
