League of Maritime Editors condemns new Customs duty exchange rate

 The new rate was released last week by the Central Bank of Nigeria (CBN) apparently following the crash of the Naira against other major international currencies.

 According to new policy,  the Customs Service will now calculate duties on imports at the rate of N1356.883 per $1.

In a statement issued  by  the President, Chief Timothy Okorocha and the Secretary, Mr. Felix Kumuyi, the League described the rate as outrageous in view of the obvious consequences on the national economy.

The statement said  the rate is destined to be counterproductive if the Federal government is desirous of  addressing the economic challenges currently being faced by Nigerians.

 Coupled with the current petroleum price hike under the deregulation policy and its consequences on cost of transportation, the League believes that the current customs duty exchange rate   will further worsen the living conditions of Nigerians as importers and manufacturers will be forced to increase prices of their goods.

 The maritime Editors lamented that Nigerians are already facing hard times as a result of the increasing high prices of goods and services in the market and that any further increase in customs duties on imports would complicate the already bad situation.

 “There is hardly any day that prices of all types of food and other goods in the market do not go up. So, the new rate to be implemented by the Customs in calculating duties will worsen the situation,” the statement said.

 While noting that the Customs management may be implementing the directive handed to it by the federal government, The League advised the Service to draw the ears of the Finance Ministry and the Central Bank of Nigeria to the consequences of the directive if it is sustained.

 The statement added, “Economic policies are introduced for the good of the people and not to worsen their living conditions and expose them to extreme poverty.  Every policy must have human face.

“This current policy is certainly against the common interest of the people because it will further send them to early graves because it will further worsen the price explosions being experienced in different markets all over the country”.

 Pointing out that such high rate of duties  will further discourage imports, a development that will lead to high scarcity of essential goods in the market and consequences on the prices, The League asked the government to have a rethink.

 Part of the statement reads, “The new rate will stifle trade rather than promote trade.  Cargo throughput will further go down. It will hit everyone, including manufacturers who will be forced to raise high prices as they are doing now.

 “The few that manage to bring in goods will have no choice than to raise their prices to such that only very few people will be able to afford to buy these goods.

“What it means is that the policy will only favour the rich who can pay for anything and leave many Nigerians to their own fate.

“We believe that this is not what the present administration of President Ahmed Bola Tinubu stands for,” The League noted.

Asking the government to take another look at the rate, The League implored the Customs Service to take up the issue with the Ministry of Finance and CBN.

“Every policy must promote economic wellness of the people and not send them to their early graves.

“If you insist on implementing the new rate, some importers will have no choice but to pay, but remember that it is actually Nigerians that will suffer at the end, because the importers will ensure they recover their investment,” the Editors said.