The Central Bank of Nigeria (CBN) has granted approval for a substantial 43% increase in import duty rates, leaving importers and trading stakeholders startled by the sudden shift.

The alteration in the exchange rate for duty collection, previously determined by the CBN, took effect overnight, soaring from the December 2024 rate of N951.842 per $1 to the new rate of N1356.42.

Dr. Muda Yusuf, Chief Executive Officer of the Center for the Promotion of Private Enterprises (CPPE), voiced his astonishment at the development, expressing concerns that this hike would exacerbate the already challenging economic situation.

Yusuf questioned the advisory process for the CBN Governor, emphasizing the potential far-reaching effects on various economic aspects. He stressed that the increased import duty would ripple through transportation costs, shipment expenses, and clearance charges, significantly impacting trade volume and slowing down activities in the maritime sector.

Highlighting the potential devastation, Yusuf warned against the upward revision of the exchange rate for import duty computation, foreseeing adverse consequences for both the economy and its citizens.

Former Executive Secretary of the Nigerian Shippers Council, Mr. Hassan Bello, echoed these concerns, emphasizing that the velocity of the exchange rate’s impact extends across all sectors of the economy. He underlined the need for the country to focus on exporting more than importing, especially as the Naira continues to depreciate against the Dollar, potentially leading to reduced importation.

Credit: Vanguard