The Centre for the Promotion of Private Enterprise has said that the fluctuating exchange rate has adversely affected container traffic, causing a slowdown in momentum and tempo in the country’s ports.
Speaking during a live radio programme recently, the Chief Executive Officer of CPPE, Dr Muda Yusuf, urged the government to ensure stability in the exchange rates.
He called for a comprehensive review of the Central Bank of Nigeria’s role in determining customs duty rates.
He also advocated revisiting existing laws and arrangements to ensure stability and predictability in the exchange rate on customs duty.
The CPPE boss suggested fixing a permanent customs exchange rate for cargo clearance between N900/$ and N1,000/$, for a specified period, such as three months, six months, or a year.
According to Yusuf, fixing a static exchange rate for cargo clearance over three months to one year would not only foster economic stability but also ensure predictability in international trade within the maritime sector.
He emphasised the importance of stability and predictability in international trade, adding that the impact of exchange rate fluctuations on import cycles could be extended up to 60 to 90 days.
“The drop in exchange rate is a very good development for imports and the maritime sector generally. But the impact may not be immediate because if you look at the import cycle sometimes can be up to 60 to 90 days
“So, we pray for the sustainability of this current trend, which is sustained. Then in a matter of a few weeks or months, you begin to see the impact on the activities at the port. So, it is a very good development,” Yusuf noted.
He commended the recent efforts by the CBN and fiscal authorities, stressing the need for further action regarding customs duty determination.
He stated that the measure would provide a framework for planning and contribute to lowering the cost of living by reducing inflation.
“But I want to plead that in addition to what is happening, the CBN and the fiscal authorities should revisit the issue of the customs duty. It is extremely very important.
“Yes, there may be laws and regulations that say that the CBN should be determining the customs duty but you make laws for people, you don’t make people for laws. They need to review that law arrangement for stability and predictability in international trade. It is extremely very important,” the CPPE boss maintained.
