Stop customs FX rate increases – Peter Obi tells FG

Peter Obi, the Labour Party’s presidential candidate in the 2023 elections, has urged the federal government to address the inconsistency in customs duty charges, citing its adverse effects on businesses across the country.

Notably, since the beginning of the year, the Nigerian Customs Service (NCS) has frequently adjusted its foreign exchange (FX) rate for duties. In February alone, the agency has raised the rate six times, reflecting the volatility in the broader FX market.

Obi, in a statement released on Wednesday, called for an end to the arbitrary and continuous increases in customs duties. He highlighted the detrimental impact on businesses and the cost of goods, cautioning that it poses a significant threat to the economy.

He warned that such unpredictable charges could lead to more business closures and subsequent job losses. Moreover, if left unaddressed, importers may opt to use ports in neighboring countries, resulting in decreased productivity in Nigerian ports and further economic challenges due to revenue loss.

Obi emphasized the challenge faced by businesses when the exchange rate used for importation calculations differs significantly from the rate used for duty calculation upon the arrival of goods in Nigeria. He noted that this discrepancy exacerbates business losses and contributes to inflationary pressures, ultimately driving up the cost of living.

Calling for policy consistency, Obi stressed the importance of stable economic policies for effective economic forecasting and business planning. He underscored the urgent need to support local businesses, particularly in the manufacturing sector, to sustain economic growth and preserve jobs.

In a related development, BUA Foods, a major consumer goods producer in Nigeria, voiced concerns about the continual adjustments in import duty FX rates, citing their adverse impact on operations, especially in the importation of raw materials. The company emphasized the challenges posed by the frequent rate changes, making planning difficult.