Importers and exporters operating in the nation’s maritime industry have lamented the harsh effects of the Central Bank of Nigeria’s (CBN) stringent policies which has led to increased cost and inflation.
The industry stakeholders in separate chats with our correspondent lamented that the policies have led to hardship for businesses and the average Nigerian while also noting that many are already running out of business due to the stringent policies.
Mr Emmanuel Amaife, former Administrative Officer of the Alaba International Importers Association, voiced the concerns of many importers and traders, stating that the policies have not been favorable, especially to the informal sector.
“The cost of clearing goods has continued to rise, and the recent 60% increment in tariffs has made it even more challenging for us. The CBN needs to reassess its strategy to combat inflation.”
Amaife emphasized that inflation is a direct result of government policies. “When the cost of bringing in items goes up, it reflects in the open market. The average Nigerian suffers the consequences of these policies”, he lamented.
He acknowledged the challenges faced by the current administration but stressed the need for effective solutions. “While I sympathize with the government for what they inherited, the average Nigerian is more concerned about how you will bring down the cost of living, transport, power supply, fuel, and other essentials, said/
Speaking also with our correspondent, the President of United Berger Motor Dealers Association; Mr Metche Nnadiekwe, expressed similar frustrations, emphasizing the need for the CBN to stabilize the exchange rate.
According to him, “The current Customs exchange rate has made it difficult for businesses to operate. The constant increments have led to desperation among young Nigerians, driving some to crime.
“The government must ensure that the dollar rate comes down to where it was before. The constant increments have finished the business. We can’t continue like this, as it only leads to more suffering for the masses”
Nnadiekwe highlighted the social consequences of the economic pressures, noting that many young Nigerians are turning to crime out of desperation. “People are seeing things and want to be part of it. Every day, there’s an increment, and who suffers? It’s the masses. This desperation leads many into crime”, he said.
On his part, Dr. Muda Yussuf, Director-General of the Centre for the Promotion of Private Enterprise (CPPE), urged the CBN to slow down on monetary policy tightening. “Businesses are yet to recover from the recent hawkish monetary policy stance. The monetary instruments should be put on pause while fiscal policy tools address supply-side factors in the inflation dynamics”, he advised
Yusuf noted that the main drivers of inflation, such as food, transport, and insecurity in farming communities, have not been adequately addressed.
Meanwhile, the Presidential Committee on Fiscal Policy and Tax Reforms has recommended that the Federal Government should adopt an exchange rate of N800 per dollar for customs import duty.
Taiwo Oyedele, chairman of the committee, expressed concern over the constantly changing import duty rates due to the volatility of the foreign exchange market. “People need to plan. We’re saying to the government, can you please sign an order that says for the purpose of paying import duty, we shall use N800 for the rest of the year till December?”
