The Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) has called on the Nigeria Customs Service (NCS) to reconsider its practice of charging import duties in dollars and instead transition to the use of the naira for such transactions.
In a recent interview on Arise TV News Night, NACCIMA President, Mr. Dele Oye, expressed concerns over the frequent fluctuations in the foreign exchange (FX) rates utilized for customs duties payments. He emphasized the need for stability in this aspect of trade facilitation.
Mr. Oye underscored the importance of the Federal Government setting a precedent by conducting its business transactions in the local currency rather than relying on foreign currencies. He argued that such a practice is not sustainable and lacks precedent in global trade norms.
He stated, “Government must not be perceived as profiting from trade. Customs serves as a facilitator of trade and should not be involved in determining FX rates. The Form M rate, which is a percentage of the FX rate, should be the basis for customs duty calculation. If the government professes its faith in the naira, it must conduct its transactions accordingly.”
Mr. Oye highlighted the root of the issue, stating, “Our challenge lies not in the availability of dollars but in the stability of the naira. The government needs to demonstrate through its actions that it conducts its affairs in the local currency.”
He questioned the rationale behind encouraging businesses to operate in naira while customs duties are calculated in foreign currency. He emphasized that such a disparity is contrary to established practices in global trade.
As of today, March 30th, 2024, the Nigerian Customs imports duties are set at ₦1,303.84 per dollar, marking a significant improvement from the rate of over ₦1,400 per dollar recorded earlier in February. This adjustment reflects ongoing efforts to stabilize trade transactions and foster economic growth.
