Unstable foreign exchange rate impedes trade facilitation, scares investors- Customs brokers

By Steve Agbota

Customs brokers and clearing agents operating at the Tin-Can Island port, Lagos, lamented that the floating exchange rate has hampered hampers trade facilitation and scared investors from the country.

The clearing agents decried that the issue of the floating exchange rate has really affected cargo importation into the country.

This is even as the clearing agents under the aegis of the Association of Nigerian Licenced Customs Agents (ANLCA), lauded the Comptroller General of the Nigeria Customs Service (NCS), Bashir Adewale Adeniyi, over reforms he had embarked upon since his appointment.
Their endorsement stems from their belief that the incumbent Customs authority is a radical departure from the

pains and torture they experienced for eight years under the previous leadership.

However, the former vice chairman of ANLCA, Tin Can Island chapter, Ada Akpononu, said floating exchange rate hampered trade and scares investors away from coming into the country.

Akpononu said the Central Bank of Nigeria (CBN) should as a matter of urgency intervene to bring sanity to the system and restore the confidence of investors.

He lamented that the issue of floating exchange rate is a worrisome issue which impedes trade, urging the Ministry of Finance and the Central Bank of Nigeria (CBN) as a matter of urgency should intervene to bring sanity to the system and restore the sagging confidence of investors.

“As again the erroneous impression in some quarters, the floating rate was the fiscal policy of the CBN and not the making of the Customs. The Customs are just implementing the policy,” Akpunonu said.
She however expressed surprise that the Manufacturers are doing little or nothing to address the situation.

“It is only ANLCA, under the current leadership of Emenike, which is working silently to tackle the problems. The ANLCA leadership has engaged the necessary authority on this matter and it is still in the process of engagement” the freight forwarder claimed.

Also speaking, sole administrator, Tin-Can Island chapter of ANLCA, Sunday Eforha, said importers cannot make long term plans with the current economic situation.

“The situation is very unpredictable due to instability of the exchange rate which does not tend to be planned. In the last three to four months, there has been fluctuations in exchange rates. Importers are afraid. They cannot plan because most of them took loans from the banks with high interests,” Eforha lamented.

He claimed that this situation has given rise to paucity of cargo at the port, adding that cargo throughput has dropped while Tin Can port now look like a graveyard.

The clearing agents, however, agreed that the unfortunate situation was not the fault of the Customs as they merely implement government fiscal policies.

However, the association throws their support behind the current management of Customs under the leadership of Bashir Adewale Adeniyi.

The excited freight forwarders claimed that clearance of goods now takes between 24 and 48 hours if importers are compliant.

“We are really happy with the performance of the present Customs management led by CGC Adewale Adeniyi. We are equally elated by the Customs Act 2023 which allows professionals to take charge of Customs affairs.

“This has impacted well on the Customs operations. You can’t compare what obtained now in customs administration with the previous regime because trained officers are now in charge.

“Some of the challenges we experienced under the previous regime such as duplication of functions and multiplication of task forces are no longer there. This has really helped to facilitate trade,” the ANLCA Chieftains said. Today, there is no longer a multiplicity of task force teams who would subject our consignments to multiple checks, thus impeding trade facilitation and extortions of agents.

The morale of staff is boosted due to the enhanced welfare programmes of the customs administration which are meant to motivate them, the clearing agents said.