These are not the best of times for importers and clearing agents operating at the nation’s sea ports. They are to pay more on every good they import going by new exchange rate regime approved for the Nigeria Customs Service (NCS) by the Central of Nigeria (CBN).
Under the apex bank’s new directive, foreign exchange rate to be used by the NCS for the clearing of imported goods, including vehicles through the ports has gone up.
The exchange rate rose from N770.88 to N783.174 per dollar (additional N12.29 to every dollar) in the process of clearing goods from the ports.
Stakeholders in the maritime industry told The Nation, over the weekend, that with the new rate, which was contained in the Customs’ official website, the cost of imported goods in the market will rise, especially, with the approach of the festive season.
Some of the Importers, who spoke with this newspaper, complained that within the last three to four months, the CBN had reviewed Customs’ duty consistently.
They urged the apex bank to look into the pains the upward adjustment would bring on Nigerians.
A member of the Nigerian Importers Integrity Association (NIIA), Albert Samson, said the time has come for the CBN to allow importers breathe by providing a stable official exchange window for them to do their legitimate business and boost international trade.
Samson decried the situation, pointing out that the country relies heavily on imported vehicles and goods to feed and move the people across the country.
Few days ago, the Comptroller-General (CG) of the NCS, Bashir Adewale Adeniyi, admitted that the floating exchange rate was the major cause of the surge, adding that nothing had changed in Customs duty.
But the former President of Association of Nigerian Licensed Customs Agents (ANLCA), Prince Olayiwola Shitty, explained that the balance of trade influences currency exchange rates through its effect on foreign exchange supply and demand.
Shittu said,
“When a country’s trade account does not net to zero, that is, when exports are not equal to imports, there is relatively more supply of or demand for a country’s currency. This influences the price of that currency at the international market.
“Currency exchange rates are quoted as relative values; the price of one currency is described in terms of another. For example, one $1 might be equal to three Saudi Arabia Riyad.
“In other words, an American business or person exchanging dollars for Riyad would buy three Riyad for every dollar sold, and a Nigerian would buy $1 for every N800 sold if that is the official exchange rate.”
The rate was adjusted from N422.30/$1 to N589/$1 and shortly after jerked up to N770.88/$1.
Clearing agents and freight forwarders are mostly affected by this adjustment. This is because those who have been paid by importers at the old exchange rate to clear their cargoes out of the seaports will have to call for upward adjustment.
An importer, Folagbade Adesanya, said the increment will affect vehicle clearance, saying, however, that clearing agents are engaging the importers to forestall disagreement.
“The CBN has increased the dollar exchange rate, from N422.30 to N589.45 and N770.88. Now, we are at N783.174 to a dollar.
“What it means is that if clearing agents have a debit note that has not been paid on the system or Pre-Arrival Assessment Results (PAAR) or they have given you the value and you have not captured, it has affected your business,” Adesanya said.
