The President of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Mr. Dele Oye, has called for a change in the currency used for customs duties collection by the Nigeria Customs Service (NCS), emphasizing the need for transactions to be conducted in Naira rather than foreign currencies.
Speaking during an interview on Arise Tv News Night, Mr. Dele Oye highlighted the Association’s efforts to boost industrialization and commented on recent government policies, particularly regarding the exchange rate. He stressed the importance of the federal government aligning its actions with its rhetoric of conducting business in Naira.
According to Mr. Dele Oye, the government should ensure that the Nigeria Customs charges duties collection in Naira instead of foreign currencies. He argued that Customs, as a trade facilitation unit, should not profit from trade transactions and should instead use the Form M rate, which is a percentage of the FX index rate, for charging duties.
“We don’t have a dollar problem, we have a Naira problem,” Mr. Dele Oye stated. “The government should show by its actions that it conducts its business in Naira. Why ask people to do business in Naira but calculate customs duties in FX? This kind of inconsistency does not work anywhere in the world.”
Furthermore, the NACCIMA boss criticized the frequent changes in the FX rate for customs duties payment, stating that it undermines planning purposes for businesses. He emphasized the need for stability and predictability in the foreign exchange market to support economic activities.
In addition to advocating for changes in customs duties collection, Mr. Dele Oye called on the Central Bank of Nigeria (CBN) to sustain recent reforms in the forex market, which have contributed to the appreciation of the Naira. He stressed that floating the currency is not feasible for Nigeria given the current economic fundamentals and called for targeted interventions in the forex market.
Mr. Dele Oye highlighted the importance of intervention in the forex market, especially for businesses that rely on imported raw materials for production. He cited the recent directive from the CBN to Bureau De Change operators to sell FX at a specified price as an example of intervention measures aimed at stabilizing the forex market.
As the debate over currency usage and forex market interventions continues, stakeholders are looking to the government and regulatory authorities for measures that will support economic growth and stability. The calls for customs duties collection in Naira and sustained interventions in the forex market reflect the broader efforts to address challenges facing Nigeria’s economy and promote industrialization.
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