- Association demands Customs duty rates fixed for 6-months minimum
As a result of the colossal economic losses resulting from the persistent fluctuation of the exchange rate for Customs duty, the Association of Nigeria Licensed Customs Agents (ANLCA) has threatened to shutdown the nation’s seaports if the problems remain unresolved in 30 days.
The association warned that it would explore strategic partnerships with the Nigerian Labour Congress (NLC), Maritime Workers Union of Nigeria (MWUN), among other labour unions to ensure the strike action is successful.
ANLCA President, Chief Emenike Nwokeoji, however, expressed optimism that the crisis wouldn’t linger further as there are ongoing engagements with the Central Bank of Nigeria (CBN) and the Ministry of Finance.
He asserted that the group would explore partnerships with the organized private sector groups like; Manufacturers Association of Nigeria (MAN), Nigeria Employers’ Consultative Association (NECA), Nigerian Association of Chambers of Commerce, Industry, Mines, and Agriculture (NACCIMA), Nigerian Association of Small and Medium Enterprises (NASME), among others; importers, shippers; in a bid to put together a united approach to address the Customs duty menace.
“The issue of foreign exchange rates in relation to the naira has become somewhat intractable that we as the mouthpiece of the Customs brokers/freight forwarders in Nigeria can no longer afford to be silent.”
“It is a well-known fact that Nigeria’s trade has a predominant foreign exchange content and Nigeria being an import-dependent country, the effect of any exchange rate distortions can be devastating. Our major concern is about the exchange rates being used in computing import duty and other charges payable on imports,” Nwokeoji said.
According to him, elementary economics teaches that no country can afford to allow her currency to be subjected to the law of supply and demand without hurting her economy, adding that the more pressing issue is the constant and upward changes in the exchange rate for Customs trade purposes creates a state of confusion.
Meanwhile, the Chairman, Board of Trustees (BoT), ANLCA, Alhaji Taiwo Mustapha, warned that of the fluctuations in Customs duty continues ANLCA will be forced to engage trade unions including; NLC, MWUN, among others in a move to shutdown the nation’s ports.
“As at Tuesday, the exchange rate has jumped to about N1800/$ in the parallel market and the average trader who purchases products have to source this. The implication is that the trader who incurs the cost and pays more from Customs duties, the products will be inflated at the Nigerian markets,” Mustapha said.
The BOT Chairman also observed ANLCA has engaged the leadership of Customs who explained the level of engagements Customs have done with the Ministry of Finance and Ministry of Trade.