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By Steve Agbota
Following the adjustment of exchange rate on the single window for trade by the Central Bank of Nigeria (CBN), from N951.941/$1 to N1,356.883/$1 on Friday and from N1,356.888/$1 to N1,413.62/$1 on Saturday, experts in the maritime industry have said that the incessant increase in exchange rate will further worsen the woes of importers in the country.
Experts who spoke to Daily Sun also predicted rise in inflation and significant reduction in the volume of import into the country while so many cargoes will be abandoned at the Ports.
This is even as they said that the consumers of imported goods are going to pay more while some basic goods will be out of reach of the masses. However, since the fluctuation of exchange rate, inflation has been on the rise with price of goods hitting the roof top.
Recalled that the CBN on June 24, 2023, adjusted the exchange rate from N422.30/$1 to N589/$1 and on July 6, 2023, it was adjusted to N770.88/$1. On November 14, 2023, it was adjusted to N783.174/$1; on December 7, 2023, it was adjusted to N951.941/$1; on Friday, February 2, 2024, exchanged at N1,356.883/$1; while it currently changes at N1,413.62/$1.
Clearing agents, however, stated that with N404.942 increment, cargoes will be abandoned at the nation’s seaports while prices of goods will go up. Speaking with Daily Sun, the Chief Executive Officer of CPPE, Dr. Muda Yusuf, said the implication is that it will further worsen the challenges of importers, it will increase the cost of import and it will lead to reduction in trade.
“We have already had enough problems with the exchange rate. Now we are having this additional burden on import duty because this is like increasing import duty across board maybe by another 15 per cent or more that is what it is.
According to him, the new duty exchange rate will affect inflation, profit margin and so many things, saying the increase in duty for import is not an appropriate thing to do and urged CBN to reverse it.
Meanwhile, the National President of the National Council of Managing Director of Licensed Customs Agents (NCMDLCA), Mr. Lucky Amiwero,said that the government has finished the economy, adding that the implication is that people will not import more. “The government through her policy is pushing more people into poverty. Nobody should blame Customs, it is the Government that should be blamed. With the rise in exchange rate, people will not import because the way you look at it, how do you get foreign exchange to import?” Amiwero stated.
“I don’t know what government is doing about it because it is devastating. The ports are getting empty, people are not importing. People are not working and you cannot access your goods. If you go to the market now, price of goods are is double, petrol and diesel have become problem,” he lamented.
“Many people have lost their jobs, traders are closing shops. The situation is pathetic because we don’t have what it takes to sustain this suffering. Government should intervene before it result into crisis,” he stated.
“The Federal Government has increased the Dollar exchange rate, from N422.30 to N589.45 then to N770.88, in November, it was moved to N783.174, December 2023, we are at N951.941 to a dollar now, we N1,356.883/$1, this is too much,” Ikemefuna Chukwu, a frontline clearing agents said.
“What it implies in simple terms is that, if clearing agents have a Debit Note that has not been paid on the system or Pre-Arrival Assessment Results (PAAR) or they have given you the value and you have not captured, it has affected you directly,” he added.
He stated that lot of cargoes would be abandoned at the seaports because the differential was too wide for importers to bear.
“We just believe that maybe with time, we will see low exchange rate and it will become beneficial to the importers as well because once there is a change in the portal, there is nothing anybody can do about it. But if you have captured or access your work, you are good to go and your consignment would be released for you if you don’t have any infraction.”
“Whether you have collected your value, whether you have a PAAR, if you have not done your assessment as at now, you can’t capture with that old rate. Especially for the Roll On Roll Off (RORO) or those that are doing PAAR door to door. It’s a Federal government policy. We stakeholders can’t do anything for now, but, it’s the prerogative of the FG to intervene and stabilise the foreign exchange market,” he stated.
