Labour Party’s 2023 presidential candidate, Peter Obi, urges the government to tackle inconsistent customs duties’ impact on Nigerian businesses.
Mr Obi highlighted how arbitrary and ever-increasing charges are creating a hostile business environment for business owners.
He highlighted a key issue for importers: they face varying exchange rates upon goods’ arrival in Nigeria, differing from their initial calculation rate.
“The federal government should stop the arbitrary and ever-increasing customs duties as it is now negatively impacting businesses and the cost of items, and this portends a huge danger to the economy.
“At import initiation, Form M and related documents use a set exchange rate, like N1000 to $1, until goods reach the warehouse.”
“Then suddenly when the goods arrive in Nigeria, and duties are calculated at different rates, say N1400 to $1, it becomes a serious business challenge that results in business losses. Worse still, it directly fuels the inflationary spike which is the basis of increasing cost of goods and living,” he posted.
This sudden change, he said, not only creates serious challenges for businesses but also fuels inflation, ultimately leading to higher costs of goods and living expenses for citizens.
Mr Obi warned that the current situation could result in further closures of businesses and job losses.
He warned that ongoing inconsistencies may drive importers to neighboring ports, worsening Nigeria’s economic struggles.
He urged the government to maintain consistent policies for better economic forecasting and business planning.
Importers face a challenge when their initial exchange rate calculations don’t match the rates upon goods’ arrival in Nigeria.
