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Naira Devaluation: Vehicles Duties Increase By 40% As Customs Raise Exchange Rate From N422/$ To N589/$

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  • Economists berate FG, say policy will cause job loss, impoverish Nigerians, worsen hardships.

The Central Bank of Nigeria and the Nigeria Customs Service have extended the current foreign exchange reforms to the maritime industry, with a 40% increase in the exchange rate used to calculate import duty.

On Saturday, the NCS increased the exchange rate from N422.30 to N589 per dollar to be utilized in calculating import duties.

Clearing agents, freight forwarders, and importers have demanded an immediate change in the policy in response to the development, which has resulted in a commensurate 40 percent increase in import duty on imported commodities, including autos.

Stakeholders predicted that the strategy would cause a sharp decline in the quantity of imported automobiles as well as job losses in the maritime industry.

This, they said, could affect business and economic growth. Economists also said the government was insensitive, saying the policy was capable of affecting Nigerians negatively.

The development came barely one month after the Federal Government removed fuel subsidy and floated the naira. It also came at a time Discos began a gradual increase of their tariff.

The National Public Relations Officer,  NCS, Abdullahi Maiwada, who confirmed the new exchange rate on its portal, said the agency was only implementing a CBN policy.

He said, “Whatever you see in our system is what has been communicated to us. It is determined by the Central Bank of Nigeria. So whatever we are using is what is obtainable as communicated to us. It is a monetary policy, we only implement what is given to us. It is a monetary policy and anything monetary is not determined by us, it is determined by the CBN. We only use what is communicated to us.”

Also confirming the development, the Youth Leader of the Association of Nigerian Licensed Customs Agents, at Tin Can Island, Remilekun Sikiru, said that the new rate had been effected on the Customs portal.

The new rate was confirmed on the Customs portal on Sunday.

Sikiru, also the CEO of Siktemstar Logistics, said that the customs duty payable on vehicles had increased astronomically.

He said, “For instance, the total duty payable on a Toyota Camry was N901,000 before now; but it has been increased to N1,270m; duty payable on Venza was N1.632m before now, but it has been increased to N2.278m. In the same vein, Toyota Corolla was N786,000, but now  it has been increased to N1.097m while Lexus Rx which used to cost N1,828,000 now costs N2,550,447.”

He added, “It’s pathetic. We woke up to see this in the early hour on Saturday 24th of June 2022. The Federal Government needs to reverse this.”

According to him, this development may lead to cargo including vehicles being trapped at the terminals.

“The customs duty has been increased and it will lead to a heavy increment in duty payment on general goods/cargo. This will bring hardship on importers”

Also speaking, a freight forwarder and Chief Executive Officer, 2B Frank Nigeria Limited, Nwegbe Frankypaul, said, “Freight forwarders woke up on Saturday to realize that dollar rate has been increased from about N423 per dollar to about N590 per dollar.”

Nwegbe pleaded with the President to ensure depreciation on the value of older vehicles.

Reacting to this, the Chief Executive Officer of the Center for the Promotion of Private Enterprises, Dr Muda Yusuf, said the government needed to reverse the policy due to its effect on Nigerians and the economy.

“This has nothing to with either supporting or negating the unification of the exchange rate. What I think is that this will translate to an additional burden on the citizens and businesses. The bottom line is that import duties have increased. The citizens have not recovered from the fuel subsidy removal, they are still expecting palliatives which have not come. Now, the Discos are talking about increasing the electricity tariff. How will the citizens feel? I don’t think the Federal Government is being sensitive to the plight of the people. Whoever gave the directive is not being sensitive; they should be talking about reducing some of these tariffs so that transportation costs can be reduced. The palliative is not only for salary earners, the government should do a palliative scheme that will affect everybody.

Also speaking, the Founder of the National Council of Managing Directors of Licensed Customs Agents, Mr. Lucky Amiwero, said, “The moment you allow the naira to float freely in terms of exchange, that is what you get. And it is going to affect the prices of goods. It is going to take a lot of licensed Customs agents out of work because most of them are going to lose their customers.”

The Vice President of the National Association of Government Approved Freight Forwarders, Nnadi Ugochukwu, while remarking, said, “It will affect businesses, there is a container I have for someone, before now,  we used to clear that container for N4.3m. With the new exchange rate, the clearing cost is now N6.5m.”

Also speaking, the Secretary General of NCMDLCA, Mr. Festus Ugu, “Even if the Federal Government wants to do exchange rate harmonization, they should know how to go about it. This increase is a very big one.”

However, an economist, Mr. Ibrahim Tajudeen, said the policy “is in line with the overall reform of the foreign exchange market by the government. Also, it is not the first time that we are seeing such a thing. A few years ago when the currency was devalued, the exchange rate for clearing goods also increased. So it is consistent with the development or reforms going on in the foreign exchange market. Nevertheless, I recognize that Nigerians are going to feel the negative impact. And I think the government has to do something to help the masses at some point.”

It was earlier reported that the CBN directed Deposit Money Banks to remove the rate cap on the naira at the official Investors’ and Exporters’ Windows of the foreign exchange market.

This came barely a few weeks after President Bola Tinubu promised to unify the nation’s multiple exchange rates and less than a week before the suspension and detention of CBN Governor Godwin Emefiele, whose unorthodox monetary policies had become a stumbling block to investors and the economy.

The CBN’s decision to float the currency was hailed by the organized private sector and economists who said the move would unify the country’s multiple exchange rates and bring sanitize the FX market.

The development means buyers and sellers of foreign currency in the official FX markets are now allowed to quote rates they find comfortable in the FX market, as against the previous practice where rates were dictated by the Central Bank of Nigeria.

Following the development, the naira has been on a free fall, weakening to 770.19/dollar at the close of trading at the I&E Window on Thursday, according to data from the FMDQ Securities Exchange.

 

Credit: The Punch

BIG STORY

Coup Plotters Marked Me For Arrest, Assassination —- Defence Minister

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The Minister of Defence, Gen. Christopher Musa (retd.), on Sunday disclosed that he was among the intended targets of the recently foiled coup plot against President Bola Tinubu, revealing that the conspirators planned to arrest or shoot him if he resisted.

Musa made the disclosure while speaking as a guest on Politics Today, a Channels Television programme, where he also described the suspects behind the plot as “a bunch of very unserious individuals.”

While admitting that he played a key role in helping security agencies nip the plot in the bud, the former Chief of Defence Staff said he was personally marked for arrest by the plotters.

“I was also a target, I am sure you know. I was supposed to be arrested, and if I refused, I was supposed to be shot,” he said.

“But that’s the job. Anybody who goes into a coup zeroes his mind because he knows if he succeeds, good.

If he doesn’t succeed, whatever consequences come, you are ready for it.”

Musa dismissed the capacity of the suspects to successfully challenge the Nigerian state, saying their actions showed a complete misunderstanding of Nigeria’s democratic history and the strength of its armed forces.

“But again, I think these guys were just a bunch of very unserious individuals that I really don’t know. If you look at the calibre of the individuals, I really don’t know what got into their heads to think that they could take on the armed forces like that,” he said.

He added that even without the intervention of the military, Nigerians would have resisted any attempt to overthrow a democratically elected government.

“What I even said was that even Nigerians would have fought them. Even without the armed forces, Nigerians would have stood against them. Remember how Nigerians fought against the military rule for quite some time. And that’s why Mr. President has always been one of them.

“So now, for them to think they could just wake up one morning and do that in Nigeria, I think something went wrong in there. They need to reset their brains.”

Speaking on the arrests made so far, the Defence Minister said most of those involved had been apprehended, with only “maybe one or two” still at large.

“So far, most of them have been caught. If there’s anyone, maybe one or two. It just started from the colonel himself, who felt disgruntled because he was not promoted. He didn’t meet the marks to be promoted,” he said.

Musa explained that the plot was driven largely by personal grievances, noting that the armed forces’ promotion system is strict and merit-based.

“You know that the armed forces is really very strict about its promotions system. But he didn’t make it. So what he decided to do was probably go around, look at other people that had one issue or the other…with the aim of bringing them in,” he said.

Expressing concern for junior officers allegedly drawn into the plot, Musa said, “My pain is all those young officers who didn’t understand what was going on that he put in this mess. Now they have to face the consequences.

“So everything evolves around him as an individual. But he was just a colonel. I can’t even imagine a colonel ever thinking of doing such a thing.”

The Defence Minister stressed that executing a coup in modern-day Nigeria was virtually impossible, unlike in the past.

“That was in the past. That was Nigeria of yesteryears. It’s impossible,” he said, adding that security agencies relied on verified facts, not speculation, before acting.

“If there’s a situation where you hear that somebody is trying to do something and you walk in, what facts do you have because you are going to go to the courts? If you can’t present it in the courts, then they throw you away. And then you look stupid.”

He said the investigation was thorough and collaborative, involving multiple intelligence agencies to avoid indicting innocent officers.

“Since I was there, I was the one who inaugurated the board. I made sure the board started. We sent them to DIA to do a thorough investigation along with the NIA, DSS, and every other person. So it’s a holistic investigation that was carried out because we didn’t want any innocent person to be indicted,” Musa said.

He dismissed claims that the plot was driven by dissatisfaction with the current administration, insisting it predated Tinubu’s inauguration.

“These things were planned even right before the president took office. So it was a plan they had ahead of him since they knew he was the one who won the election,” he said, describing the development as “quite unfortunate.”

Musa further noted that past coups succeeded only with the backing of top military commanders, a factor completely absent in the current case.

“If you remember, during those days when they had coups, you had to have most of the big boys like the GOCs and service chiefs…You don’t have any of such. They are just very low-ranking individuals that have no access to some of these things,” he said.

“For anybody to want to truncate democracy in this disposition, I think there’s something really wrong with them.”

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BIG STORY

Public Infrastructure Vandals Should Be Shot On Sight —— Bayo Onanuga

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Bayo Onanuga, Special Adviser to the President on Information and Strategy, has called for vandals of public infrastructure to be shot on sight.

Onanuga made the statement in a post on X on Sunday, while reacting to a video showing damage to an ongoing federal road project.

“Just shoot these unconscionable vandals/thieves at sight. They are the worst species of citizenships,” he wrote.

The video showed men wearing reflective jackets, emblazoned with the crest of the federal ministry of works, narrating how vandals cut and removed starter bars, also known as shoulder rods, at the reconstruction site of the Ibadan-Ilesa/Ife federal highway.

An official in the footage said the vandals removed sections of the iron bars they could access, and cut out others entirely, despite security presence at the site.

“So what happens is that we have some people vandalising these starter bars. You can see that they are pressing in some places, but all these vandals, they cut out of it, they remove the ones they could remove,” he said.

“They cut the ones that are very solid and remove the ones they can remove entirely. These are starter bars. This is a very bad thing they are doing. These are vandals, and we have security patrols.”

The Ibadan-Ilesa/Ife highway is one of the major roads being reconstructed by the federal government.

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BIG STORY

Adron Homes Hails Ondo State at 50, Celebrates Legacy of Excellence

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The Chairman, Board of Directors, Management, and staff of Adron Group have congratulated the Government and people of Ondo State on the celebration of its 50th anniversary, describing the milestone as a significant chapter in Nigeria’s federal history and a testament to visionary leadership, resilience, and purposeful development.

In a goodwill message issued to commemorate the Golden Jubilee, Adron Group noted that since its creation in 1976, Ondo State has consistently distinguished itself as a centre of honour, intellect, and enterprise. Fondly referred to as The Sunshine State, the state has produced generations of outstanding professionals, administrators, and national leaders whose contributions continue to shape Nigeria’s socio-economic and political development.

According to the company, the strength of Ondo State lies not only in its rich cultural heritage and intellectual depth, but also in the values of integrity, diligence, and excellence that define its people. These qualities, Adron noted, have remained the bedrock of the state’s enduring relevance and national impact over the past five decades.

Adron Group further commended the state’s renewed drive in recent years towards infrastructure development, economic diversification, industrial growth, and youth empowerment, describing these initiatives as indicators of a forward-looking, inclusive development agenda anchored in sustainability and long-term prosperity.

“As a corporate organisation committed to nation-building and sustainable development, Adron Group recognises Ondo State as a strategic partner in progress,” the statement read. “We commend His Excellency, Lucky Orimisan Aiyedatiwa, Executive Governor of Ondo State, and the leadership of the state at all levels for their dedication to public service and their commitment to the advancement of the people.”

As Ondo State marks its Golden Jubilee, Adron Group joined millions of well-wishers in celebrating a legacy of excellence, strength of character, and promise, while expressing optimism that the next fifty years will usher in greater milestones in economic vitality, social advancement, innovation, and enduring peace.

The company concluded by wishing the Government and people of Ondo State continued progress and prosperity, adding that the Sunshine State remains well-positioned to shine even brighter in the years ahead.

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