The Centre for the Promotion of Private Enterprises (CPPE) has lamented the frequent changes in the customs duty exchange rate by the Central Bank of Nigeria, News About Nigeria reports.
The Chief Executive Officer of CPPE, Dr. Muda Yusuf, disclosed this in a statement on Wednesday.
He noted that by adopting a quarterly customs duty exchange rate, the high volatility in cargo clearing costs occasioned by the recent frequent changes in the rate will be put under check.
He added that the frequent changes in the customs duty exchange rate have become a huge burden and the inconsistency has made it extremely difficult for investors to plan.
“The frequent changes in the customs duty exchange rate have become a huge burden on the business community. This has led to high volatility in cargo clearing costs, worsening inflationary pressures, and aggravating investment risk, especially in the real sector of the economy. These frequent changes are profoundly detrimental to production, planning, and other real sector activities in the Nigerian economy.
“In the first quarter of this year, there were changes in the customs duty exchange rate twenty-eight times. In April, the frequency of changes would be close to ten times or even more. As of May 1, 2024, the rate had jumped to N1373.65/$. It was less than N1200/$ few days before,” he stated.
Yusuf further noted that the situation has introduced a high level of uncertainty and unpredictability to the international trade dynamics, adding that investment risk has become elevated, planning has become difficult, risk management has become challenging and investors’ confidence is being weakened.
He, therefore, appealed to the Central Bank of Nigeria, CBN, to adopt a custom duty exchange rate of 1000/$, adding that this will bolster investors’ confidence and drive economic growth.
