Nigeria Customs Raises Concerns Over CBN’s 28-Time Hike In Duty Rates Within Three Months

Nigeria Customs Raises Concerns Over CBN’s 28-Time Hike In Duty Rates Within Three Months

The Nigeria Customs Service (NCS) has expressed worry over the frequent adjustments in customs import duty rates by the Central Bank of Nigeria (CBN), stating that it has significantly impacted transaction volumes in the first quarter of 2024. The Comptroller General of the NCS, Bashir Adewale Adeniyi, conveyed these concerns during a briefing in Abuja, highlighting the challenges faced by the Service during the quarter…..READ ALSO First Lady Remi Tinubu And Nigeria Customs Unveil N500 Million Fund To Aid Vulnerable Nigerians Amid Hardship

According to Adeniyi, the CBN directed 28 rate adjustments from January to March 2024, ranging from NGN 951.94 per USD 1 to a peak of NGN 1,662.35 per USD 1. These fluctuations in exchange rates have posed considerable difficulties for customs clearance, affecting transaction volumes and disrupting activities.

Adeniyi stated, “The repercussions of these fluctuating rates have sent concerning signals to our stakeholders, affecting and disrupting activities. Beyond the speculation regarding potential gains it may have on NCS revenue, the implications on transaction volumes are significant and outweigh any possible benefits.”

However, Adeniyi acknowledged that the NCS has initiated consultations with the CBN to address the effects of exchange rate fluctuations on import operations, with the support of the Honourable Minister of Finance.

Despite the challenges, the NCS recorded a significant revenue collection of N1.34 trillion in the first quarter of 2024, reflecting a growth of 122.35% compared to the corresponding period in the previous year. Adeniyi emphasized the impressive growth trajectory of revenue collection month by month, attributing it to the NCS’s commitment to meeting its targets.

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