The Centre for the Promotion of Private Enterprise (CPPE) has recommended that the Nigerian Federal Government fix the exchange rate for import duty at N1,000 per US dollar in response to the country’s persistently high inflation rate of 29.90% in January 2024. Muda Yusuf, the director of CPPE, highlighted the urgent need to address challenges in power supply, logistics, and foreign exchange fluctuations to curb inflation.
Yusuf emphasized the necessity to review tariff policies and provide concessional import duties on intermediate products for agro-allied industries and other industrialists. He expressed concerns about the impact of inflation on poverty and citizens’ welfare, noting a continued decline in purchasing power.
The CPPE underscored the significant contribution of supply-side issues, such as the depreciating exchange rate, rising transportation costs, forex market illiquidity, and insecurity in farming communities, to the persistent inflationary pressures. The organization asserted that the government must intervene urgently to alleviate production costs, boost productivity, and enhance economic stability.
Yusuf further called for a revision of the exchange rate benchmark for import duty computation to N1,000 per dollar to mitigate escalating cargo clearing costs and reduce uncertainty in international trade processes. He emphasized the need to prioritize power, logistics, and forex issues to effectively tackle inflation and ensure economic recovery.
Amid the ongoing forex crisis, the Central Bank of Nigeria made its fifth adjustment in 2024 to the customs exchange rate, indicating the severity of the situation.
