Import Costs Skyrocket in Nigeria as CBN Hikes Duty Rate by 43%
Lagos, Nigeria – February 3, 2024 – Nigerian businesses and consumers brace for a significant blow as the Central Bank of Nigeria (CBN) unexpectedly raises the import duty rate by a staggering 43%. This move, effective immediately, threatens to further cripple the already struggling economy and inflate prices across the board.
Previously, the CBN set the exchange rate for import duty at N951.842 per dollar. However, importers woke up yesterday to find the rate jacked up to N1356.42, representing a massive 43% increase.
Industry experts expressed shock and dismay at the decision. Dr. Muda Yusuf, CEO of the Center for the Promotion of Private Enterprises (CPPE), questioned the rationale behind the move, highlighting the detrimental impact on already strained businesses and consumers.
“This will definitely affect every area of our economic life,” warned Dr. Yusuf. “The cost of imports will increase significantly, slowing down trade and further dampening economic activity.”
He voiced concerns about the potential for reduced trade volume and job losses within the maritime sector, already experiencing sluggish activity.
Former Nigerian Shippers Council Executive Secretary, Mr. Hassan Bello, echoed similar concerns, emphasizing the detrimental effects of a depreciating Naira and the need to prioritize exports over imports.
“As the Naira weakens, we will import less,” he stated, highlighting the potential for decreased foreign exchange earnings and a weakened economy.
The CBN’s decision has sparked widespread criticism and anxiety. Businesses grapple with the prospect of higher import costs, potentially leading to price hikes and reduced competitiveness. Consumers face the reality of potentially more expensive goods and services, further straining their budgets.
With inflation already a major concern in Nigeria, this sudden move by the CBN adds another layer of uncertainty and hardship for businesses and citizens alike. It remains to be seen how the economy will weather this latest storm and what solutions policymakers might propose to mitigate the negative consequences
