CPPE urges CBN to peg customs duty FX rate at N1,000/$ to ease economic hardships

The Centre for the Promotion of Private Enterprise (CPPE) has called upon the Central Bank of Nigeria (CBN) to take decisive action to alleviate the burdens faced by businesses and citizens by pegging the customs duty exchange rate at N1000/$.

Muda Yusuf, Chief Executive Officer, CPPE said in a statement made available to BusinessDay. He said amidst rising concerns over the escalating costs of cargo clearance and import transactions, the CPPE emphasizes the urgent need for intervention to mitigate the adverse impacts on the economy.

While acknowledging the CBN’s recent decision to approve the use of exchange rates reflected on import documentation (Form M) at the onset of import transactions, the CPPE highlights the persistence of significant challenges in the customs clearance process. The soaring costs of cargo clearance, attributed to high exchange rates for import duty assessment, pose substantial obstacles to businesses, exacerbating inflationary pressures and threatening job security within the maritime sector.

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In response to these pressing concerns, the CPPE makes a fervent appeal to the CBN to lower the customs duty exchange rate to N1000/$ for the remainder of the year. Such a measure, aligned with the Federal Government’s commitment to alleviating economic hardships, is deemed essential for easing the financial burdens on businesses and citizens alike. The current exchange rate of N1488.9/$ is deemed excessively high and incompatible with ongoing efforts to stimulate economic recovery and foster growth.

The CPPE contends that pegging the customs duty exchange rate would yield several benefits, including enhanced competitiveness, cost reduction, inflation deceleration, and increased employment opportunities. By addressing the prevailing challenges faced by businesses, this proposed intervention aligns with broader economic reform agendas and serves as a crucial step towards promoting economic stability and resilience.

In advocating for a lower customs duty exchange rate, the CPPE underscores the imperative of prioritizing measures that alleviate economic hardships and foster sustainable growth. As businesses grapple with mounting challenges, decisive action from regulatory authorities is essential to safeguarding the interests of stakeholders and steering the economy towards a path of recovery and prosperity.