The House of Representatives, has called for urgent rescue of the Nigerian economy from total collapse, as well as restore investors’ confidence in the country.
To make this possible, the house in a resolution on Thursday, urged the Federal Ministry of Finance and the Central Bank of Nigeria to provide adequate notice to stakeholders in the maritime industry and the general public before altering customs exchange rates, saying that doing so would ensure transparency and allow stakeholders to prepare for any changes that may affect their operations.
It also urged the CBN to maintain the system exchange rate for Customs Duty and Excise duty purposes below N1,000/$1 preferably N951.941/$1 to encourage patronage in Nigerian ports to prevent galloping inflation, aiming to balance economic stability with competitiveness in the globe.
It further urged the Federal Ministry of Finance to ensure the international best practice of allowing a 90-day grace period for fiscal policy changes to facilitate the completion of ongoing transactions under existing policies; and mandated its Committees of Customs and Excise, Finance and Banking Regulations to interface with the Minister of Finance, Governor of the Central Bank of Nigeria,and Comptroller General of Customs on how fixed exchange rate for duties will work for the system in order to boost exports and encourage patronage in the nations sea ports.
Chairman of the committee on customs, Hon. Leke Abejide, had presented a motion on “Need to Rescue the Nigerian Economy from imminent Collapse and Restore Investors’ Confidence in the System”, which was unanimously adopted by the House.
According to him, conventional fiscal policies required a minimum of 90 days to manifest, in contrast to the current trend in Nigeria where immediate enforcement is prevalent, thus necessitating the need for a shift towards a collaborative approach which integrates fiscal and monetary policies with stakeholder’s engagement to prevent isolation and guarantee active stakeholders’ involvement in consequential decisions.
“The Central Bank of Nigeria has raised customs tariffs six times in the past six months, causing inflation and disrupting import and excise duty calculations, which businesses rely on for business planning.
“The Central bank of Nigeria experienced a series of exchange rate adjustments for customs duties within six months, in 24 June, 2023, the rate increased from N422.30/$1 to N589/$1, followed by N770.88/$1 on July 6, 2023, N783.174/$1, on November 14, 2023, N951.941/$1 on December 7, 2023, and a double-adjustment on February 2 and 3, 2024, reaching N1,356.833/$1 and N1,413.62/$1 respectively, illustrating excessive fluctuations and volatility in the currency market, raising significant concerns about business planning and economic stability”, he said.
