Importers and clearing agents were left shell-shocked on Monday night as the Central Bank of Nigeria (CBN) jacked up the exchange rate payable on importation from 1,417.635/$ to N1,444.56/$.
This year, the CBN has adjusted the import duty exchange rate four times in a most destabilizing fashion.
The exchange rate was moved from N951.941/$1 to N1,356.883/$1 on February 2 and was again reviewed upwards on February 3 to N1, 413.62/$. Last Saturday, the rate was changed again to N1,417.635/$ before it was raised on Monday to N1,444.56/$1.
The worrisome development has stifled import activities at various seaports and land borders with the thousands of containers and vehicles abandoned as their owners have not been able to raise the huge sums of money required to clear them.
The exchange rate rose from N422.30 per $1 in June 2023 to N1,413 per 1$ in February 2024, rising by 234.8 per cent in the period under review.
The first shock came in June 2023 when CBN adjusted the exchange rate from N422.30 per $1 to N589 per $1.
But as importers struggled to adjust to the harsh reality, the apex bank, about a month later, precisely on July 6, 2023, adjusted it for the second time from N589 per $1 to N770.88 per $1.
This generated a lot of outcry from the Manufacturers Association of Nigeria (MAN) whose members are the major importers of large consignments. But little did they know that there was more horror in cue.
So, on November 14, 2023, the CBN jacked up the exchange rate from N770.88/$1 to N783.174/$1.
In December 2023, another adjustment was implemented as the exchange rate rose from N783.174/$1 to N951.941/$1 and on February 2, 2024, while importers were just settling down after yuletide lull of January, the CBN implemented the fifth increment, rising from N951.941/$1 to N1,356.883/$1.
Barely 24 hours later the exchange rate saw another increase to N1,413/$1 and finally N1,444.56/$.
The Sea Empowerment Research Center at the recently concluded World Economic Forum (WEF), raised concerns over the drop in the global trade volumes as witnessed in 2022/2023 period.
Dr Eugene Nweke, Head Of Research at Sea Empowerment Research Center and a former president of the Nigerian Association of Government Approved Freight Forwarders (NAGAFF), stated that it was against the backdrop of the overwhelming consequences of the recent increment that the centre requested the Coordinating Minister to direct the CBN to desist from toying with increment of exchange rate for Customs duty assessment like it was some poker.
He said the increase reverberates negatively across the country with millions of Nigeria tossed into desolation and misery.
Daily Sun also gathered that Nigerian importers have begun dumping Nigerian seaports for Port of Tema, Ghana; Port of Lome, Togo and Port of Cotonou, Benin Republic.
The decision to dump Nigeria ln seaports was as a result of the incessant increase in exchange rate for cargo clearance by the Central Bank of Nigeria (CBN).
Also, clearing agents said importation into the country has dropped by 35 per cent from 40 per cent, as business activities dropped drastically.
According to a frontline clearing agent, Olubayo Akinlosotu, between 60 to 80 containers are dropped daily for examination as against 200 to 250 dropped in 2023.
Also, the National President of the National Council of Managing Director of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, tagged the recent happenings ‘importers Japa’.
Amiwero argued that the floating exchange rate is responsible for the crisis the country is currently facing, adding that sourcing for forex is another big problem attributing it to ‘importers’ Japa’.
“The subsidy paid on by the govt. is what takes care of a common man, the head dressers, the transport system, the farmer and all the rest. So you remove subsidy, price of diesel go up and manufacturers are closing shops because they cannot run diesel and there is no constant power supply.
“For importers to move out of the country to go and look for solace is terribly disastrous and the implication is huge. That means we cannot fund our import and so many of our things. We are crashing down completely and people are moving out. Maybe as they are moving out, they are moving their companies out of the country,” he added.
Some other ports players, who spoke anonymously, urged the federal government to step in and ensure tranquility reigns at the ports currently overheated by multiple challenges.
They said vehicle smuggling will rise astronomically as many importers and clearing agents can no longer afford to clear vehicles through proper channels.
“Soon, we vehicle terminals may not have vehicles to clear because many will be smuggled through land borders and the government will lose huge revenue it ought to generate from clearance protocols”, a terminal operator told Daily Sun.
Also various social scientists have cautioned the federal government to rescue the fast-slumping economy as things have reached a tipping point where public peace can no longer be guaranteed.
In recent weeks, there have been mass protests in some states against the high living costs, worsening hunger and rising insecurity.