The Central Bank of Nigeria (CBN) has once again increased the exchange rate for imports, this time by 3.18 percent, reaching N1,515.092 per dollar at the start of business on Thursday. This marks the fifth adjustment in two weeks and the ninth since the beginning of President Bola Tinubu’s administration in May 2023. The frequent changes have sparked concerns and uncertainty among importers, with many unsure of the apex bank’s next move in the next 48 hours.
The rapid rise in the exchange rate, which has escalated by 234.8 percent in the last eight months, is causing panic among importers and could have significant implications for the masses. Essential items such as medicines, including inhalers, have become increasingly unaffordable for ordinary Nigerians, leading to fears of a rise in the death toll due to lack of access to vital medications.
In response to the escalating situation, the House of Representatives has urged the CBN to maintain a stable exchange rate for Customs and Excise duty purposes, suggesting a rate below N1,000 per dollar to encourage patronage in Nigerian ports and stabilize the economy. The House proposed pegging the exchange rate at N951.941 per dollar for Customs and Excise duty.
The House also called on the Federal Ministry of Finance to adhere to international best practices by allowing a 90-day grace period for fiscal policy changes, facilitating the completion of ongoing transactions under existing policies.
Expressing concerns over the continuous increase in customs tariffs over the past six months, Representative Leke Abejide highlighted the adverse effects on inflation and business planning. He noted that the frequent adjustments have led to a decrease in cargo importation and business activities at Nigerian seaports, with importers increasingly favoring ports in neighboring countries.
The House has tasked relevant committees to engage with key stakeholders, including the Minister of Finance, CBN governor, and Comptroller General of the Nigeria Customs, to devise a suitable exchange rate for Customs and Excise duties that will promote exports, boost patronage in Nigerian ports, and restore confidence in the economy.
