Maritime industry stakeholders, including freight forwarders and importers have raised alarm over the new exchange rate by the Central Bank of Nigeria (CBN) saying that it has led to 25% increase in the cost of clearing of the goods.
Shipping Position Daily recalls that last month, the Governor of CBN, Mr. Godwin Emiefele announced the adjustment of the exchange rate for cargo clearance at the ports from N326 per Dollar to N361 per Dollar.
But, the freight forwarders and importers argued that the increase will compound the woes of importers who may have already opened ‘Form M’, before the adjustment of the Dollar rate.
Confirming this, the Public Relations Officer (PRO) of the National Association of Government Approved Freight Forwarders (NAGAFF) Mr. Stanley Ezenga told our correspondent in Apapa last week that the adjustment in the exchange rate has contributed to the high cost of clearing of goods at the ports.
“The exchange rate regime at present has actually contributed to high cost of clearing of goods in Nigeria, it has equally disrupted some contracts; you know the government in their usual way will just wake up one morning and make some pronouncements without warning or prior information”, he noted.
Explaining further, he said it has also affected some contracts entered into before the new exchange rate regime, adding that it will definitely have effect on the general public.
“Some people who have entered into contracts before that time, of course the exchange rate review adversely affected those contracts. For instance, I had one consignment for I was given N6million before as CIS and duty payable by PAAR, but when this new exchange rate was introduced, it now shot-up to N6.5million; it added extra N500,000 and that is the way it goes into many other things”
According to him, the new exchange rate has made the business difficult for both freight forwarders and importers.
Also speaking, another freight forwarder, Mr. Ugochuwku Nnadi said, that some consignments were already on their way to Nigeria before the new exchange rate was announced.
“Nigeria is an import-dependent nation and people already have their consignments some were on the way before the new exchange increase, it does not have much impact, just that it has increased the cost of clearing with about 25%. Normally for a vehicle you would have cleared with say N400, 000 before, you can now clear with about N450, 000”
Meanwhile the Chairman of Alaba international Market Association (Electronics), Evangelist Paulinus Ugochukwu, said that it will be difficult to make sales with the new exchange rate considering the financial strength of Nigerians.
He however lamented low sales due to the Covid-19 lockdown, adding that it will be difficult for him to import new goods now that he has not been able to sell-off the ones he has in his store.
“I am dealing with musical instruments and now they have closed everywhere, the churches, hotels, clubs, and mosques amongst others everything that deals with musical instruments are closed, there is no business for us now, we are out of business. We cannot be able to sell anything now”.
Talking about the new Dollar rate, if we include the new rate on the cost of our goods now nobody will be able to buy it”
“I have not been able to import anything and there is no way I can import when the ones that I have here, I have not been able to sell them, nobody is buying it. Nobody is buying if we import with this new Dollar rate, there is no way we can be able to sell them in Nigeria and before we clear the goods the cost will be high" he concluded.
Discussion about this post