CBN's rapid duty rate hikes raise alarm at Nigerian customs

Comptroller general Bashir Adewale conveyed the service’s concerns during a briefing held recently in Abuja to outline its performance during the period.

Adewale highlighted that the NCS encountered various systemic challenges throughout the quarter, hindering its ability to effectively fulfil statutory obligations. Consequently, there was a noticeable decline in cargo activity, evidenced by a 4.89 per cent reduction in the volume of transactions processed.

He also pointed out that substantial fluctuations in exchange rates used in customs clearance processes further compounded the challenges. Customs clearance via the Nigeria Integrated Customs Information System (NICIS) adheres to exchange rates set by the Central Bank of Nigeria (CBN), adding another layer of complexity to the situation.

Adewale emphasised the adverse impact of these fluctuating rates, which have disrupted activities and raised concerns among stakeholders. Despite potential revenue gains speculated by some, the CGC underscored that the implications on transaction volumes far outweigh any such benefits.

However, he noted that collaborative efforts have been initiated with the minister of finance to address these challenges even as periodic consultations with the CBN have been launched to mitigate the potential adverse effects of exchange rate fluctuations on import activities.

Fibre2Fashion News Desk (DR)