Nigerian importers are facing significant challenges as duty costs continue to rise due to the country’s fluctuating foreign exchange rate.
Import duty rates have surged by over 200%, greatly impacting the cost of imported goods according to importers.
This surge disproportionately affects Nigerian importers who heavily rely on importing various goods and commodities.
The Comptroller General of Nigeria Customs Service (NCS), Bashir Adewale Adeniyi, recently stated that the floating exchange rate is the main cause of this surge, emphasizing that there have been no changes in custom duty.
Addressing the concerns on behalf of importers, Kayode Farinto, the immediate past acting President of the Association of Nigerian Licensed Agents (ANLCA), warned that the recent increase in import duty due to the volatile exchange rate will have a significant impact on the average consumer.
Farinto stressed that Nigeria heavily relies on international trade for a large portion of its consumption needs, making the current situation a burden on the masses.
He further highlighted that customs has reviewed the duty rates multiple times within a short period, urging the agency to consider the immense difficulties this poses for importers.
The rising import duty rates exacerbate the already challenging cost of trade for importers and have a direct impact on their ability to provide affordable goods to meet the country’s demand.
Farinto stated, “The current exchange rate fluctuations have caused import duties to rise to unprecedented levels, making it increasingly difficult for importers to maintain competitive pricing while staying afloat in the market. The implications of this situation are far-reaching, as the increased import duty will ultimately translate to higher prices of imported goods, thus burdening the average consumer.”
Recognizing the crucial role importers play in driving economic growth, job creation, and maintaining a vibrant consumer market, he called on relevant authorities and stakeholders to review the current import duty structure and implement comprehensive measures to address the challenges at hand.
