Unstable rates for Customs duties payments usually set by the Central Bank of Nigeria (CBN) has taken a toll on importation business and has more than halved vehicle importation in the last one year, a frontline Customs licensed agent, Dr Kayode Farinto has said.
Speaking in an exclusive interview with The Nigerian Economy at his office in Apapa, Lagos, Farinto, a former Acting President of Association of Nigerian Licensed Customs Agents (ANLCA) called on the CBN to urgently consider fixing a customs rate that would last for one or two quarters so that importation tariffs could be predictive. This will also reduce cost of goods which are adding up by the hours as tariffs rise, as well calm down inflation.
He said: “There is no business right now at the ports. The industry is stagnant. It’s very unfortunate that we are in this current situation…but for now, no business; everything is stagnant. This is caused by unfavourable government policies.
“Importation is declining on a daily basis. Let me categorise our cargoes: we have bulk importation, which has fallen by about 20%; we have general containerized importation which has dropped about 30% and roll-on vehicle importation which has dropped by about 55% in the last one year.
“This poor performance is courtesy of the policies of the Federal Government, particularly in the area of exchange rate. Yesterday, the exchange rate was different and this morning the exchange rate has changed. Within 72 hours we would have more than four different exchange rates and this is not helping the country.”
Farinto, who is also CEO, Wealthy Honey Investments Nigeria Limited, urged the Federal Government to implementing a long lasting Customs rate in order to stabilize international trade.
“We have asked the government to let us have a predictive Customs rate where an importer going abroad for business knows or can predict the rate he would be using for Customs purposes in the next two quarters. That would allow importers to predict the economy and make better price control decisions for consumers of his goods,” he said.
Farinto continued: “One of the criteria used to determine a stable economy is that the trade and customs operation must be predictive. If you import a good at the rate of $200 per unit from abroad, by the time the consignments arrive Nigeria after 60 days, they will tell you that the cost of clearing the goods is $700 per unit. So no sane importer would want to dabble into that kind of economy. Unfortunately, our country is import dependent. Ordinary tooth pick is imported.”
He further tasked relevant arms of the Federal Government to think out of the box to come up with ideas to move the country’s maritime sector forward, as the industry has remained backward and largely untapped.
“We all know that once you take over leadership, you bring new ideas to move the country forward but most of the ideas put forward has not helped the maritime industry. We have given many advice but they think they have the magic wand. Nothing is moving in the industry. There’s no progress and it’s very unfortunate.”
