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Imports: How Customs Duties Exchange Rate Hikes Influence Higher Market Prices
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By Emmanuel Agaji
Many Nigerians are currently languishing in extreme poverty and this has in turn led to reactions from all parts of the country.
Perhaps, the problem started with the withdrawal of petroleum subsidy.
The subsidy withdrawal as being feared over the years has come with pains of more transport costs which in turn led to rise in prices of goods in the market. But that was not all. The fall of Naira in value to other foreign currencies has been devastating for months now.
The fall has been with speed. Early last year, the rate of Naira to Dollar was about N700/$1. Expectations were therefore that the new government would work out a way in which the exchange rate would come down. But instead of coming down, the dollar rate has kept rising to what it is now – over N1,900/$1. Observers hold the view that the Dollar can be said to have arrived at the doorstep of N2,000/$1 and will soon begin a fresh journey to N3,000/$1. The result is that importers and manufacturers have in turn continued to increase prices of their products on the basis of dollar exchange rate to Naira.
Perhaps what has been a sad event is the rate at which there is fluctuation in the rate of dollar to Naira.
The Naira keeps falling in value everyday to the dollar and other currencies, including those of the neighbouring West African countries.
The current situation is that many citizens of other African countries who have been doing business in Nigeria are now returning to their home countries because of the fact that the Naira has fallen far below their own currencies. In other words, their currencies have become far stronger than Naira.
Critics believe the devaluation of Naira against the Dollar and other currencies will continue to affect the economic life of the people negatively.
The rise in prices of goods in the market has left many dumbfounded. To worsen the matter is the Customs duties exchange rate introduced by the Central Bank of Nigeria.
This is the rate the Nigeria Customs Service uses in calculating duties on imports. First, it was about N1,357.50 before it rose to N1,413.62. It later went up to N1,617.00 with information later that it went down to about N1,500.00.
The rates have been introduced for more than 10 times in a month. While it is believed that with this scenario the Customs will make more revenue this year, triple what it made last year, yet such gains will have no positive impact on Nigerians.
This is because prices of goods have continued to go up. Traders have become confused because every minute importers and manufacturers come up with new prices in relation to the prevailing exchange rate. To observers, this is destroying businesses.
The policy has made international trade a big task because of the continued rising of the dollar rate against the poor value of the Naira. With almost everything being imported, including farmers relying on fertilizers and other foreign inputs, prices of food and other commodities have become so high for the low income group.
This explains the reason for the protest in many parts of the country. Everyone appears sad. This includes the importers, manufacturers who also import raw materials for production.
Dealers on different goods, wholesalers and retailers are all worried. The reason is that the goods are changing in prices every 30minutes as traders monitor the dollar rates. The final consumers are bitter as they find it difficult to pay for most of the goods they would want to buy. This has made market very dull.
Even traders in the market are no longer buying to stock-up as they are afraid these goods are too expensive and final consumers are not ready to buy. Keeping them in the store for too long means taking risk of damages and therefore losses of investment.
As experts suggest, what government should do is for the CBN to discuss with the management of the Customs Service and arrive at one exchange rate under which duties can be calculated. Although it was gathered that the CBN has agreed that the rate of duties to be paid by importers will be based on the prevailing exchange rate when the Form M was opened, importers still argue that this policy will continue to affect businesses and prices of goods in the market.
According to experts, this will not bring prices of goods down as importers will claim they sourced the foreign exchange at high rate of dollar exchange rate. An importer said if the government wants prices of goods to be affordable, CBN should rather peg the rate used in calculating duties at about N1,200 for it to be uniform for all.
Other possibilities for prices of goods to come down is for the government to consider ensuring that fuel prices go down by using the gains of the subsidy removal to encourage private refineries to come on board as quickly as possible.
These refineries should be expected to reduce their fuel prices since they source crude oil to be refined locally. Government should also not make the mistake of relying on big time monopolists who are likely to look for ways to suffocate other small companies.
This was what happened in the case of cement manufacturing over the years which prices have now gone out of the reach of the low income earners. Government should be fast in acting outside the box to arrest the issue of continued rise in the prices of goods.
The prices of food and other goods in the market should be affordable and the solution is in addressing the continued fall of Naira value to the Dollar and other currencies.
The camp of the African Democratic Congress, ADC, presidential candidate, Atiku Abubakar, has kicked against the continued detention of former Kaduna State Governor Nasir El-Rufai.
The former Kaduna governor has spent 200 days in detention since he was taken into the custody of the Independent Corrupt Practices and Other Related Offences Commission, ICPC.
A statement by Atiku’s media aide, Paul Ibe, said El-Rufai is entitled to justice, due process and equal treatment under the law.
He described the former governor as a political prisoner, alleging that he is being detained simply because he decided to chart a different political path, as provided for in Nigeria’s Constitution.
The Youth Wing of the Christian Association of Nigeria (YOWICAN) and the National Council of Muslim Youth Organisations (NACOMYO) have signed a peace accord ahead of the 2027 general elections.
The historic signing took place at the National Christian Centre on Friday in Abuja during the 2026 National Christian Youth Security Summit and Thanksgiving Service, held under the theme: “Empowered for Leadership, Service and Nation Building.”
The News Agency of Nigeria (NAN) reports that the peace accord aimed at fostering religious tolerance, rejecting political violence, and promoting peaceful coexistence ahead of the 2027 elections.
The three-day summit, brought together security officials, government representatives, Church leaders, and youth delegates from across the 36 states, the Federal Capital Territory (FCT), five CAN blocs, and six geopolitical zones.
Delivering his welcome address, the National Chairman of YOWICAN, Ven. Evang. Ademola Arowolo, described the peace accord as a “covenant of hope and a declaration of unity” designed to curb electoral violence and interfaith friction from the national level down to the grassroots.
”Today marks a defining moment in the history of youth engagement, faith-based leadership, national security advocacy, and interfaith collaboration in Nigeria.
“This Peace Accord represents more than a document. It is a covenant of hope, a declaration of unity, and a collective commitment by Christian and Muslim youths to work together in promoting peace, justice, dialogue, tolerance, and national development.”
Addressing newsmen during an interview, Arowolo emphasised the sanctity of human life and urged young people to resist political thuggery and vote-buying as the country prepares for the next electoral cycle.
”The key objective of today’s gathering is for the Christian youth of this country to sit down and see that security is very important, because every life whether of a Muslim, a Christian, or any other faith is sacred.
“God Himself does not divide us; it is human beings that divide us in their own mindsets.
“An idle man is the devil’s workshop, but as elections approach, if somebody meets you for any violence, tell them your children should not come. We cannot destroy our own land,” he said.
Corroborating the commitment, the National President of NACOMYO, Sani Sulaiman-Maigoro, stressed that interfaith solidarity remained the most viable tool to defeat security threats and political manipulation.
”First and foremost is for us to accept the reality that we are first Nigerians, and Nigeria is our country. Together we live and prosper, and when we are divided, we all suffer.
“When we work together, we are able to defeat the negative narrative and those few people who choose to be evil and divide us along religious, ethnic, or sectional lines.
“Nigerian Muslim youths are here in solidarity with Christian youths to say we are together towards securing and making Nigeria a better place for all,” he said.
Representing President Bola Tinubu, and First Lady, Sen. Oluremi Tinubu, the Executive Secretary, Nigerian Christian Pilgrim Commission (NCPC), Bishop Stephen Adegbite, cautioned young people against allowing politicians to use them as instruments of destruction.
”We are meeting at a very crucial time in the history of our great nation a period when we are moving towards another election
“It should be a period that none of you will be used as a sacrificial lamb. We don’t want any politician to use you and waste your life.
“The Muslim and the Christian in Nigeria must work together; we are brothers and sisters, and it is only when you have peace that you can talk of progress.”
The President of CAN, Most Rev. Daniel Okoh, urged Christian youths to rise as nation-builders and moral exemplars.
Okoh, represented by Rev. Simon Dolly-KIF, the Secretary-General of Northern Christian Religious Leaders Assembly (NOCRELA), urged youths to rise beyond the limitations of yesterday.
“The time has come for Nigerian Christian youths to rise beyond the limitations of yesterday and embrace the responsibility of building the Nigeria we desire to see tomorrow.
“Let no Christian youth become an instrument of violence, hatred, manipulation, or destruction.
“We must refuse to be recruited into anything that destroys the lives and future of our fellow Nigerians. Nigeria is bigger than our ethnicity, denomination, and political differences.”
Highlighting the security perspective, the Minister of Defence, Gen. Christopher Musa (rtd), noted that peace was essential for youth productivity.
Muse, represented by Mr Musa Likita, Special Adviser on Security and Intelligence to the Minister of Defence, recognised the important role of the youth in national development under a whole-of-society approach.
“The youth are full of energy, creativity, and innovation, so they will thrive better when the environment is peaceful.
“Youths are implored to hold values where they will not allow themselves to be exploited by extremist forces or criminal elements.”
(NAN)
By Gloria Ikibah
Member representing Ideato Federal Constituency of Imo State, in the House of Representatives, Rep. Ikenga Ugochinyere, has expanded his electricity intervention programme to seven communities with the installation of 500KVA transformers and other power infrastructure.
The latest phase of the Operation Light Up Ideato initiative covers Ogwume, Dikenafai and Akpulu, where transformers, electricity cables and other essential components are being installed to improve power supply.
The intervention cuts across Ideato North and Ideato South, with the latest installations building on earlier projects in Umuopia, Obodoukwu, Abukwa and Umukegwu.
The completion of the transformer installation in Akpulu, alongside ongoing work in Ogwume and Dikenafai, brings the number of communities reached by the initiative to seven.
According to the lawmaker, “the expansion underscored his “commitment to addressing critical infrastructure needs at the grassroots and ensuring that communities that have long experienced inadequate electricity infrastructure are not left behind.
“Unlike a one-off intervention, Operation Light Up Ideato is being implemented as a continuing community focused programme, with more transformers expected to be supplied and installed in additional communities identified as being in need.”
The programme is aimed at improving electricity infrastructure in communities that have faced inadequate power supply, while supporting economic and social activities at the grassroots.
Speaking on the continued expansion of the initiative, Ugochinyere, who is also Chairman, House Committee on Downstream Petroleum, reaffirmed his determination to ensure that every community in Ideato requiring electricity infrastructure is eventually covered.
He stressed that the objective was to progressively close the gap in power availability across the federal constituency.
The latest intervention adds to ongoing constituency projects by the lawmaker aimed at addressing basic infrastructure needs across Ideato North and South.
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