BusinessImport Duty Rises As FG Hikes Exchange Rate By 43%

Import Duty Rises As FG Hikes Exchange Rate By 43%

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February 02, (THEWILL) – Duties payable on imported goods at Nigerian ports have gone up following a 43% hike in the exchange rate for cargo clearance by the Federal Government through the Central Bank of Nigeria (CBN).

THEWILL reports that the exchange rate, which before now was set at N951.842 per $1 in December 2023, has been increased to N1,356.42.

This became the fifth time the exchange rate for cargo clearance was raised between June 2023 and February 2024

The CBN had in June adjusted the exchange rate from N422.30/$1 to N589/$1. In July, it was adjusted to N770.88/$1, in November, it was adjusted to N783.174/$1, while in December, it was adjusted to N951.842 per $1

Chief Executive Officer of the Center for the Promotion of Private Enterprises (CPPE), Muda Yusuf, confirmed the latest development.

Noting the effect on the economy and citizens, Yusuf said, “I am shocked at the development, I mean with all this suffering, with all these costs, we have not recovered from the unification of the exchange rate they just did, now another increase in duty.

“This increase will definitely affect every area of our economic life, already, we recorded a drop in the volume of imports last year, so you imagine what will happen with this increment.

“The sharp depreciation and the increment of import duty will no doubt affect the volume of trade because the cost of import is going to increase significantly and this will affect practically all the key components of cost.

“That is the cost of transportation, the cost of shipment, the cost of clearing and this will slow down the velocity and the tempo of activities in the maritime sector. And that tempo has already reduced anyway and it further reduces.”

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