Market News
Manufacturers fault customs duty hike above official FX rate - VANGUARD
By Yinka Kolawole
Manufacturers have kicked against the constant rise in customs duty above the official foreign exchange (FX) rate, noting that it is a disincentive to raw material access and local production.
Findings have shown that the exchange rate for duties collection by the Nigeria Customs Service (NCS) has risen by N3.00 above the official closing rate of the Naira on the NAFEM window.
Consequently, the manufacturers are calling for a deliberate lowering of the cost of importing manufacturing products and raw materials to dampen the rising inflation in the country.
Director General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, said that the constant rise in Customs duty rate is stifling local production and importation of raw materials for the manufacturing sector.
His words: “Something needs to be done to deliberately lower the cost of importing manufacturing products and raw materials. What is important is for us to incentivise productivity and not stifle it.
“The manufacturing sector needs to be insulated from the vagaries of the exchange rate since the government reforms are taking a while to materialise.”
