The Centre for the Promotion of Private Enterprise, CPPE, has urged the Central of Nigeria and the Customs Service to reverse a 42.5 per cent hike in the exchange rate import duty, saying it will impoverish more Nigerians.
The Director of CPPE, Dr Muda Yusuf, disclosed this on Friday in his statement while reacting to the import duty hike from N952 to N1,357.
The economic think-tank group said the hike would have a devastating effect on businesses across all sectors.
“The drastic upward review of the exchange rate for the computation of import duty from N952 to N1357 would devastate businesses across all sectors. This is a whopping 42.5% increase. This is like the last straw.
“Businesses have yet to recover from the shocks of the new round of currency devaluation resulting from the sudden unification of the exchange rate, which has driven the official exchange rate to about N1400.
“It is double jeopardy for investors across all sectors, especially those in the real sector. This action will further fuel inflation as production and operating costs escalate. The vulnerable population segments will be further impoverished as cost-push inflation gets exacerbated.
“CPPE appeals to the CBN to reverse this rate hike in the interest of the already impoverished segments of our society and the numerous businesses already on the verge of collapse.
“The shocks, disruptions and dislocations are of immense proportions. It is even worse than the rates take immediate effect. This policy action is difficult to justify, especially in the context of the multidimensional headwinds that businesses are grappling with.
“The CPPE recommends that going forward, the determination of the exchange rate for import duty computation should be treated as a fiscal policy matter and located within the remit of the fiscal authorities, which is the finance ministry. This is necessary for proper alignment with existing fiscal policies”, CPPE stated.
DAILY POST recalls that the Central Bank of Nigeria, CBN, raised the Nigeria Customs Service exchange rate for importation to N1,356.883 per US dollar from N951.842 on Friday.
Naira fall: 42.5% import duty hike will impoverish more Nigerians – CPPE tells CBN
