…Threatens to join forces with NLC, others to shut down ports
Following the fluctuations and inconsistencies in the exchange rate for calculation of customs duty, the Association of Nigeria Licensed Customs Agents, ANLCA has called on the federal government to ensure that the exchange rate for customs duty payment at the port is stabilized by fixing it over a period of time, at least six months.
The National President of ANLCA, Mr. Emenike Nwokeoji who made this suggestion at a press conference in Lagos on Thursday explained that the time frame being suggested was advised by the usual time it takes to start and conclude an import transaction putting into consideration all the myriads of impediments on the path of international trade nowadays.
Nwokeoji who acknowledged that Nigeria’s trade had a predominant foreign exchange content, stated that Nigeria being an import-dependent country, the effect of any exchange rate distortion could be devastating. He noted that the their major concern was about the exchange rates being used in computing import duty and other charges payable on imports.
“We now have a situation where the exchange rates which were in the neighborhood of N483 to a US Dollar since eight (8) months ago have continued shooting up to now close to N2,000 to a US Dollar but the appalling thing is the continuous change of the official trade transactional rates, sometimes, up to twice or thrice a day (floating exchange rate).
“Apart from the elementary economics that teaches us that no country can afford to allow her currency to be subjected to the law of supply and demand without hurting her economy, the more pressing issue is that the constant and upward changes in the exchange rate for customs trade purposes are putting everything in a state of confusion.
“For one, it does not allow for planning by business entities in their import business endeavours. A company does not have the opportunity to estimate the cost of its import to ascertain the viability of a certain transaction. It is more frustrating for companies with bank financing.
“On our part as customs agents/brokers/freight forwarders, we now find it impossible to make credible quotes for jobs as the constant upwards reviews of exchange rates render such quotes impracticable. Even the already contracted jobs are experiencing huge difficulties.
“Our members have cried out in agony and as responsive leadership of the association, we made moves to the Comptroller General of Customs and his management team, the explanation we got was that the rates are automatically generated by the Central Bank of Nigeria, CBN, hence, they (customs) could not do anything about it.
“We are therefore, calling on the Federal Government of Nigeria to direct the Central Bank of Nigeria, CBN and other authorities involved in the exchange rate issuance to urgently stem the tide of this tension which may sound a death knell on import trade sooner than later”, he concluded.
On his part, the Chairman, Board of Trustees, ANLCA, Alhaji Taiwo Mustapha observed that with the exchange rate for computing customs duty payment as high as N1,500 to N1,800, the implication was that Nigerians were buying at a very exorbitant rate saying that that was the effect of what Nigerians were having as inflation in the country today.
Mustapha contended that Nigeria cannot afford to have her exchange rate especially when it had to do with customs duty payment on a floating rate even as he insisted that this had in effect, affected most of the freight forwarding practitioners today. “The volume of trade, the volume of clearing we are doing in the port has reduced drastically because people can no longer afford to import at that rate again.
“So, what we are saying is that if care is not taken, if we keep quiet, and continue like that, most of us will go out of business. In most of our private offices, our guys are sitting down in the offices, we are paying salaries because there’s no job to be done. Take a look at auto dealers on some of these streets today, check the number of vehicles they have in their shops, it has reduced drastically. and that is par of our job.
“So, what we are saying in essence is that we don’t want to fight the government, we are only appealing to the government to look into it but if at the end of the day nothing is done at our own level, we will collaborate with the Nigeria Labour Congress, NLC to shut down the port and at that point, the government will know that they have to come in.
“We are not going to sit aloof and keep looking at this situation like this. So, if we appeal and of course, that is the essence of why we have to meet the Nigeria Customs Service, the Comptroller General has told us the efforts he has made at his own level, at the level of customs management in terms of the interaction with the CBN and even the Minister of Finance, the Minister of Industry, Trade and Investment and we believe that at the end of the day, all this things will be carried to the President where the bulk stops.
“If the President or our leaders at the national level are not taking it serious, we all know where this problem is coming from but we cannot say it in the open here. We all know why this exchange rate keep going up, there are two major factors to it but we cannot say it here but then, at the end of the day, if things are not addressed properly, we at our level as an association, as maritime stakeholders, will take it upon ourselves, to work with other stakeholders and find a way to shut down the port. We will down tools and that is it”, he submitted.
Also speaking, a former National President and member of BOT, ANLCA, Chief Ernest Elochukwu maintained that they were lending their voice to call the attention of those involved in this to really know what they do to bring this exchange rate fluctuations under control as according to him, “the way it is going, I don’t want to become a prophet of doom but then, when people can no longer hold forth, what else could they do?
“And we don’t want this country to be listed among the failed countries of the world. Many people are thinking that we cannot survive it and that’s why we are appealing to those concerned not to think that this is a small issue. When you talk about inflation, as a standard, imagine where a bread winner is earning a minimum wage if N30,000, where would they start?
“And one of the things that this regime has taken is engagement. In the past, you could hear shut the port, do whatever it is but then, everything must have a process, the process of making sure that that engagement is undertaken and where it fails, yes, our members are agitating, and if at the end of the day they say they are not going to continue further, we as their leaders will not work against them. We will go the way they want. But we are hoping that those concerned should be able to do something so that life can go on.”
Photo: (L-R): Prince Segun Oduntan, National Vice President, ANLCA, Alhaji Taiwo Mustapha, Chairman, Board of Trustees, ANLCA, Mr. Emenike Nwokeoji, National President, ANLCA and Chief Ernest Elochukwu, former National President and member of Board of Trustees, ANLCA during the press conference in Lagos yesterday.
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