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Importers may divert cargo to neighbouring countries over customs high FX rate- CPPE 

The Centre for the Promotion of Private Enterprise (CPPE) has stated that high exchange rates for cargo clearance by the customs service can lead to importers diverting their cargo to neighbouring countries and subsequent smuggling of goods.  

Dr Muda Yusuf, the founder, stated on Sunday in Lagos, advising in line with the Federal Government’s aim to alleviate the hardships faced by citizens and the operational challenges encountered by businesses.  

In his statement, Yusuf expressed his approval of the Central Bank of Nigeria’s (CBN) recent decision to allow the use of the exchange rate specified in the import documentation [Form M] from the beginning of the import process.

He praised this move as a significant positive response to the concerns raised by investors within the economy. 

However, Yusuf pointed out a critical area that remains unaddressed by the CBN’s intervention: the steep cost of cargo clearance at the ports, which has surged by over 40% in the past two months.  

He said,

In the past few weeks, the CBN through the Nigerian Customs Service (NCS) have regularly increased the exchange rate for cargo clearance by almost 40%.

According to the customs service, the move is in line with the CBN’s policy of floating the naira and ensuring the rate syncs with what applies in the official window. 

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