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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

Father Seeks Justice Over Son’s Mysterious Death At Pool Party Inside Lagos Hotel

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A grieving father, Henry Airenekhuemen, has demanded justice over the death of his son, Mattias, who reportedly drowned in a swimming pool at Signatious Hotel in the Ajao Estate area of Lagos State.

Airenekhuemen, who spoke to newsmen on Monday, said his deceased son had attended a pool party at the hotel on Saturday evening to sell tickets to earn some money.

He, however, said he received a call from one of his son’s elder brothers that Mattias had been rushed to Isolo General Hospital and that a family member was urgently needed.

He narrated that on arriving at the hospital, he was shocked to see his son’s lifeless body in the car that brought him to the medical facility.

“I was called by one of my son’s elder brothers, who told me that Mattias had been rushed to the Isolo General Hospital and that a family member was needed. When I got to the hospital, I saw my son’s lifeless body in the back seat of the car that brought him.

“When I asked what had happened, I was told that he drowned in the swimming pool at the Signatious Hotel in Ajao Estate. I then asked his friend, who brought him to the hospital, what happened, and he said my son had been with him and a lady. About five minutes after he left them, he said he tried to call my son’s phone, but there was no response.

“He said that when he returned to where they had been sitting, the lady told him my son had left the spot, while showing him his phone, which was still there and charging.

He said it was while searching for him that he found my son’s body in the swimming pool,” he narrated.

Airenekhuemen, however, raised doubts about the drowning claim while also pointing to what he described as unusual physical signs on the body.

“If he truly drowned, why was his stomach flat instead of being swollen? And why was there foam coming out of his mouth and nose?” he asked.

He said the family immediately reported the incident to the police, who visited the hospital, took photographs of the body, and later moved it to the morgue.

The father added that police officers subsequently accompanied the family to the hotel to examine the scene. During the visit, he said questions were raised about the presence of a diver or pool supervisor at the time of the incident, but no answers were provided.

According to him, three persons have so far been detained at the Ajao Estate Police Division.

“The manager who was invited to the station and was asked to provide the CCTV footage, but said he had just started working at the hotel, has been detained. The lady who was with my son was also invited to the station, where she wrote her statement and is currently detained. His friend, who claimed to have found him in the swimming pool, was also detained,” he said.

While expressing suspicion over Mattias’ death, the father said the family received a call from a man who claimed to be a staff member of the hotel and made entreaties.

“Two things that made the death of my son look fishy were that on Sunday, one of my sons, Lucky, got a call from someone who said he was a staff member of the hotel. The person asked him what he wanted to settle the whole issue. Another was that the pool party went on that night even though my son was found dead in the swimming pool,” he lamented.

During a visit to the hotel on Monday, our correspondent observed that there were skeletal activities at the premises.

A man believed to be a staff member of the facility, who was seen at the gate, however, disclosed that the hotel was undergoing renovation and had been temporarily shut down.

“The manager is not around for now. You can check back later,” he added.

When contacted for a reaction, the state Police Public Relations Officer, Abimbola Adebisi, did not respond to calls made to her telephone line. A text message sent to her had yet to be replied to as of the time this report was filed.

 

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BIG STORY

JUST IN: NLC, TUC Suspend Planned Protest, Ask FCTA Workers To Resume

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The Nigeria Labour Congress and the Trade Union Congress have suspended their planned protest in the Federal Capital Territory and instructed workers under the Federal Capital Territory Administration to return to their duties with immediate effect.

The directive followed an overnight engagement involving labour leaders, the Minister of the FCT, Nyesom Wike, and members of the Senate Committee on the FCT.

The meeting, which began late on Monday, stretched into the early hours of Tuesday, culminating in an agreement that led to the unions’ decision to halt the protest action and restore normal activities across FCTA offices.

More to come…

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BIG STORY

US Set To Deport 79 Nigerians On ‘Worst-Of-The-Worst’ Criminal List [Names Attached]

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The United States Department of Homeland Security has said it will deport no fewer than 79 convicted Nigerians listed on its ‘worst-of-the-worst’ criminal list.

Further findings on the DHS website on Monday revealed that the 79 Nigerians were convicted of offences bordering on fraud, drug peddling, assault, manslaughter, and robbery, among others.

An accompanying note showed that the convicts were arrested as part of the United States’ crackdown on criminal immigrants.

The note read, “The U.S. Department of Homeland Security is highlighting the worst of the worst criminal aliens arrested by the U.S. Immigration and Customs Enforcement.

“Under Secretary Noem’s leadership, the hardworking men and women of DHS and ICE are fulfilling President Trump’s promise and carrying out mass deportations, starting with the worst of the worst, including the illegal aliens you see here.”

The list showed that the convicted Nigerians include Boluwaji Akingunsoye, Ejike Asiegbunam, Emmanuel Mayegun Adeola, Bamidele Bolatiwa, Ifeanyi Nwaozomudoh, Aderemi Akefe, Solomon Wilfred, Chibundu Anuebunwa, Joshua Ineh, Usman Momoh, Oluwole Odunowo, Bolarinwa Salau, and Oriyomi Aloba.

Others are Oludayo Adeagbo, Olaniyi Akintuyi, Talatu Dada, Olatunde Oladinni, Jelili Qudus, Abayomi Daramola, Toluwani Adebakin, Olamide Jolayemi, Isaiah Okere, Benji Macaulay, and Joseph Ogbara.

Also listed are Olusegun Martins, Kingsley Ariegwe, Olugbenga Abass, Oyewole Balogun, Adeyinka Ademokunla, Christian Ogunghide, Christopher Ojuma, Olamide Adedipe, Patrick Onogwu, Olajide Olateru-Olagbegi, and Omotayo Akinto.

Others include Kenneth Unanka, Jeremiah Ehis, Oluwafemi Orimolade, Ayibatonyе Bienzigha, Uche Diuno, Akinwale Adaramaja, Boluwatife Afolabi, Chinonso Ochie, Olayinka A. Jones, Theophilus Anwana, Aishatu Umaru, and Henry Idiagbonya.

Further names on the list are Okechukwu Okoronkwo, Daro Kosin, Sakiru Ambali, Kamaludeen Giwa, Cyril Odogwu, Ifeanyi Echigeme, Kingsley Ibhadore, Suraj Tairu, Peter Equere, Dasola Abdulraheem, Adewale Aladekoba, and Akeem Adeleke.

Also included are Bernard Ogie Oretekor, Abiemwense Obanor, Olufemi Olufisayo Olutiola, Chukwuemeka Okorie, Abimbola Esan, Elizabeth Miller, Chima Orji, Adetunji Olofinlade, Abdul Akinsanya, Elizabeth Adeshewo, Dennis Ofuoma, and Boluwaji Akingunsoye.

Others are Quazeem Adeyinka, Ifeanyi Okoro, Oluwaseun Kassim, Olumide Bankole Morakinyo, Abraham Ola Osoko, Oluchi Jennifer and Chibuzo Nwaonu.

Trump’s administration has continued to crack down on criminal and illegal immigrants across the US, with many Nigerians in the country affected by the policy.

It was earlier reported that some Nigerians went into hiding while others are returning home secretly over the intensified deportation campaign led by President Donald Trump’s Immigration and Customs Enforcement.

The sweeping actions, which include house-to-house enforcement raids, have stirred panic, debate and protest, particularly following a series of high-profile, deadly incidents involving the federal immigration officers.

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