The Centre for the Promotion of Private Enterprise (CPPE) has condemned the recent 42.5% increase in import duty exchange rate by the Central Bank of Nigeria (CBN) and the Customs Service, warning of its detrimental impact on the Nigerian population.
Dr. Muda Yusuf, the Director of CPPE, criticized the hike, emphasizing its potential to devastate businesses across all sectors. He highlighted the ongoing struggle of businesses to recover from the effects of recent currency devaluation, which has already driven the official exchange rate to about N1400.
The CPPE emphasized that the increase in import duty exchange rate could lead to further inflation and exacerbate the impoverishment of vulnerable segments of society. The organization urged the CBN to reconsider the decision, citing the severe repercussions already faced by businesses on the brink of collapse.
Furthermore, the CPPE recommended that the determination of the exchange rate for import duty computation should be overseen by the fiscal authorities, specifically the finance ministry, to ensure alignment with existing fiscal policies.
In response to the CPPE’s concerns, the CBN raised the Nigeria Customs Service exchange rate for importation to N1,356.883 per US dollar from N951.842 on Friday. This move has sparked widespread apprehension about its potential ramifications on the Nigerian economy.
