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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

JUST IN: Super Eagles Legendary Goalkeeper Peter Rufai Dies At 60

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The Super Eagles have honoured former Nigerian goalkeeper and 1994 Africa Cup of Nations winner, Peter Rufai, following reports of his passing.

In a statement posted on Thursday via X, the national team referred to Rufai, popularly called “Dodo Mayana,” as an iconic figure in Nigerian football whose impact will always be remembered.

“Forever in our hearts, Dodo Mayana. We mourn the passing of legendary Super Eagles goalkeeper, Peter Rufai, a giant of Nigerian football and a 1994 AFCON champion,” the statement said.

The statement praised Rufai’s outstanding career, highlighting his remarkable performances and influence beyond football.

“Your legacy lives on between the sticks and beyond. Rest well, Peter Rufai,” it added.

Rufai was a key member of the celebrated Nigerian team that won the 1994 AFCON and qualified for the country’s first-ever FIFA World Cup in the same year.

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BIG STORY

When Lagos Drew The Line On Plastic Waste, It Chose The Harder, Better Path — By Babajide Fadoju

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On July 1, 2025, the Lagos State Government began full enforcement of its long-announced ban on single-use plastics less than 40 microns in thickness. These included styrofoam food packs, polystyrene cups, plastic straws, and thin carrier bags. This was not just another policy roll-out. It marked a significant environmental turning point for one of Africa’s most densely populated cities.

The Commissioner for the Environment and Water Resources, Mr. Tokunbo Wahab, had spent months leading the charge. At every forum and press briefing, he maintained that the state would not shift the enforcement date. And when that date arrived, the government kept its word. What many had assumed would be delayed or softened became a reality across markets, food vendors, eateries, and shopping outlets. Lagos had drawn the line.

The decision did not happen overnight. In January 2024, the government had announced the ban on styrofoam products, warning that other forms of non-biodegradable single-use plastics would follow. Manufacturers, food service businesses, and packaging companies were given an 18-month window to adapt. By January 2025, after multiple consultations with key industry players including the Manufacturers Association of Nigeria (MAN), the Restaurants and Food Services Proprietors Association of Nigeria (RFSPAN), and the Food and Beverage Recycling Alliance (FBRA), the government granted a six-month extension. That grace period ended on June 30, 2025. The very next day, enforcement began.

Commissioner Wahab consistently emphasised that the decision was not driven by convenience or popularity, but by necessity. Lagos, with its coastal geography, had become especially vulnerable to the effects of plastic pollution. Thin plastics and styrofoam containers were not just littering the streets; they were choking the city’s drainage systems, causing repeated flooding, and disrupting the natural flow of water across low-lying areas. The government had been forced to spend billions clearing clogged drains, dredging canals, and evacuating waste. These were resources that could have supported education, housing, or healthcare. Continuing with the status quo would have been reckless.

Across the world, over 70 countries had adopted similar bans or restrictions. Some had introduced taxes on plastic bags. Others had outright prohibited the use of certain materials. Lagos joined that global conversation not to make a statement, but to solve a real problem. For years, markets like Mile 12 and Oyingbo had been overwhelmed by plastic waste. Waterways like the Ogun River and Lagos Lagoon had carried tonnes of microplastics downstream. With each rain, the damage multiplied.

The Lagos Waste Management Authority (LAWMA) played a central role in translating policy into action. In the weeks leading up to enforcement, LAWMA organised community outreach campaigns, market sensitisation, and stakeholder meetings. Waste collectors were briefed on how to spot banned items and how to separate recyclable materials. LAWMA officials worked directly with traders, waste vendors, and informal sector recyclers to ease the transition. Educational materials were printed in English, Yoruba, and Pidgin to reach as many residents as possible.

Despite all these efforts, resistance remained. Some business owners argued that alternatives were more expensive. Others claimed they had not received enough notice. But Wahab was unflinching. He stated clearly that any manufacturer or distributor who had failed to find a safer, eco-friendly alternative after 24 months was simply not ready to comply. The policy had been public knowledge since 2024. The time for excuses had passed.

There was also concern about job losses, especially in the plastic production and distribution chain. The government responded by highlighting the opportunity for innovation. Biodegradable packaging, paper alternatives, reusable food containers, and local compostable materials were now in demand. New jobs could be created in eco-friendly product design, waste sorting, and recycling infrastructure. Wahab noted that Lagos would support businesses willing to shift in this direction, but would no longer subsidise pollution in the name of economic convenience.

The path Lagos chose was not the easiest, but it was the most responsible. It took political will to push through a decision that affected thousands of daily transactions, from street food sales to major retail chains. It took environmental clarity to say no when delay would have been more comfortable. And it took administrative strength to follow through on enforcement, when doing nothing would have been easier.

Now, the hard part continues. Enforcement must be consistent. Public awareness must be sustained. And alternatives must remain within reach of ordinary citizens. But with this bold step, Lagos signalled that it would no longer be held hostage by harmful habits and unchecked commercial practices.

The story of July 1, 2025, was not just about plastic. It was about leadership. It was about vision. And it was about protecting a city that refuses to collapse under the weight of its own waste.

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BIG STORY

AMCON Sells Ibadan DisCo For N100bn

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The Asset Management Company of Nigeria has confirmed the sale of the Ibadan Electricity Distribution Company.

Gbenga Alake, managing director and chief executive officer of AMCON, revealed the details of the transaction during a media briefing with journalists on Thursday.

In April 2024, the federal government announced plans to sell five electricity distribution companies managed by banks and AMCON.

Ibadan DisCo, which was under AMCON’s management, is among the five companies listed for sale. Others include the Abuja Electricity Distribution Company, Benin Electricity Distribution Company, Kaduna Electricity Distribution Company, and Kano Electricity Distribution Company.

During the briefing, Alake stated that the company was sold for N100 billion.

He mentioned that AMCON would soon transfer the company to the preferred bidder.

“Today, I announce to you that Ibadan DisCo has been sold. When we came in, it has already been sold. It was sold for how much?” Alake said.

“We got in and said no, it cannot be. We said they should go and submit a new offer that we were not going to sell for that.

“At the end of the day, we got almost double of what Ibadan DisCos was going to be sold for.”

He explained that the sale has sparked legal disputes, with “so many interests now fighting and writing”.

Alake maintained that despite the matter being in court, AMCON remains confident that the process was properly handled.

“We have sold it… and whatever is still happening in court, we will face it,” he said.

On May 15, reports emerged that the African Initiative Against Abuse of Public Trust, a civil society group, had filed a suit at the federal high court in Abuja against AMCON, the Nigerian Electricity Regulatory Commission, the Bureau of Public Enterprises, and Ibadan DisCo over an alleged planned sale of a 60 percent stake in the company for $62 million.

The civil society group, in the suit marked FHC/ABJ/CS/866/2025, described the sale as “secretive and illegal,” claiming the price was “corruptly undervalued”.

The group also argued that the transaction would result in a $107 million loss compared to the $169 million paid for the same stake during the 2013 privatisation of Ibadan DisCo.

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