The Presidential Committee on Fiscal Policy and Tax Reforms has recommended that the federal government adopt an exchange rate of N800 per US dollar for Customs import duties. This proposal was announced by the committee’s chairman, Taiwo Oyedele, during a press briefing in Lagos on Thursday.
Oyedele highlighted the difficulties businesses face due to the volatility of the foreign exchange (FX) market, which leads to frequent changes in the import duty rate. He stressed the need for stability to enable businesses to plan effectively.
“When we did the budget, we said the naira to dollar rate would be N800, but now it is over 1,000. People need to plan,” Oyedele stated. He urged the government to issue an order setting the exchange rate at N800 for customs import duty for the remainder of the year.
This proposal follows recent adjustments by the Nigerian Customs Service (NCS) to the FX rate for tariffs and duties. On May 27, the NCS set the rate at N1,480 per dollar, based on recommendations from the Central Bank of Nigeria (CBN) and official FX market trading activities.
Muda Yusuf, the director-general of the Centre for the Promotion of Private Enterprise (CPPE), also addressed the issue. On May 16, he suggested that customs should adopt a quarterly exchange rate between N800/$ and N1,000/$ for import duties to provide more predictability for businesses.
Oyedele’s call for a fixed rate of N800 per dollar aims to address these concerns and promote better economic planning and stability for businesses involved in importation.
The committee’s recommendations are part of broader efforts to reform Nigeria’s fiscal and tax policies to enhance economic growth and stability.
