The Centre for Promotion of Private Enterprise, CPPE, says the recent upward review of cargo clearance rates by the Central Bank of Nigeria would incentivise smuggling in Nigeria.
The development comes as the apex bank last Thursday increased the exchange rate for cargo clearance from N783/$ to N952/$ amid the foreign exchange crisis.
However, giving perspective on the impact of the development, the Chief Executive Officer of CPPE, Dr Muda Yusuf, stressed in a report that the hike in the exchange rate for cargo clearance was a greater incentive for smuggling.
According to him, the hike in exchange rate for cargo clearance would deplete the revenue collection for customs and fortunes of operators in the maritime sector.
He added the increment would worsen the already bad inflation situation in Nigeria, the welfare conditions of citizens and heightened corruption vulnerabilities in the international trade system.
He urged the CBN and the Minister of Finance and Economy, Wale Edun, to review the exchange rate increment for cargo clearance.
“The move would serve as a greater incentive for smuggling; more industries dependent on the imported raw materials may shut down. Customs revenue may decline as imports through official channels become difficult. Worsening an already bad inflation situation, worsening an already bad poverty situation and the welfare conditions of the citizens, heightened corruption vulnerabilities in the international trade ecosystem. Increase in the influx of substandard products amid high and increasing cost of products,” Yusuf said.
CBN’s upward review of exchange rate for cargo will incentivise smuggling – CPPE
