Connect with us

News

Imports: How Customs Duties Exchange Rate Hikes Influence Higher Market Prices

Published

on

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.

Advertisement

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.

Advertisement

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.

Advertisement

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.

Advertisement

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.

Advertisement

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.

Advertisement
Continue Reading
Advertisement

News

Japa: We’ve discovered over 10,000 fraudulent foreign student acceptance letters – Canadian Authorities

Published

on

The Immigration, Refugees, and Citizenship Canada (IRCC) has flagged over 10,000 fraudulent foreign student acceptance letters this year. These numbers mark a notable 30% rise in fraudulent foreign student acceptance letters compared to the previous year.

These letters, submitted as part of study permit applications, have come under rigorous scrutiny following enhanced checks by Canadian immigration authorities, as reported by The Globe and Mail.

Bronwyn May, the Director-General of the IRCC’s International Students Branch, noted that the verification process has revealed extensive misuse of fraudulent documents.

“Since we began verifying acceptance letters from colleges and universities over the past year, we have intercepted more than 10,000 potentially fraudulent letters,” May said in a statement to the House of Commons immigration committee last week.

Advertisement

Recent investigations have revealed an alarming rise in fraudulent foreign student acceptance letters, prompting action from Canadian authorities. Over the past 10 months, Immigration, Refugees, and Citizenship Canada (IRCC) checked 500,000 acceptance letters, confirming that 93 per cent were genuine.

However, 2 per cent of these letters were found to be entirely fake, and 1 per cent of applicants had their placements at Canadian institutions cancelled.

Several factors contribute to this increase in fraudulent documents. Firstly, IRCC has intensified its scrutiny of applications, making it more challenging for fraudulent documents to go unnoticed. Secondly, Canada’s growing popularity as a leading study destination has led to a surge in international student applications, creating more opportunities for scammers.

Advertisement
Continue Reading

News

Sad! Finally, young billionaire, Senator Ubah laid to rest

Published

on

The late Senator Ifeanyi Ubah was laid to rest at his family home in Umuanukam, Otolo Nnewi, Nnewi North Local Government Area of Anambra State on Friday.

Ubah was buried amid tears and tributes from dignitaries, friends, political colleagues, and family members.

The Bishop of Ekwulobia, Peter Cardinal Okpaleke, who presided over the burial mass at St. Peter’s Claver Catholic Church, Umuanukam, Otolo Nnewi, described Ubah’s death as a lesson to the living, emphasising the importance of leading an exemplary life to be remembered after one’s passing.

According to the Cardinal, the deceased led a life full of philanthropy, always striving to make a meaningful impact on people’s lives.

Advertisement

He praised Ubah’s commitment to serving humanity and his exemplary life, saying that such should serve as a model for others to emulate.

He said, “His death is a lesson to us all. We must strive to live exemplary lives that will make people remember us for good when we are no longer here. We must touch lives, make a difference, and leave a lasting legacy. The late Ifeanyi Ubah lived a life full of legacy and philanthropic gestures. His death has touched everyone.”

Recalling his last moments with the deceased, the Governor of Anambra State, Prof. Chukwuma Soludo, who also paid tribute to the late senator, expressed shock and sadness at his sudden passing.

He said, “I still remember when we met in May, and I asked him if he had any ambitions. He told me he wanted to be part of it and said that the only way forward was for Sir Emeka Offor to convene a meeting at our request.”

Advertisement

Soludo expressed regret that Ubah’s death was not part of their discussion, asking rhetorically, “Is this what we discussed?”

Senator Uche Ekwunife, in her tribute, eulogised Ubah, describing him as a rare gem committed to youth development.

Ekwunife praised Ubah’s leadership, kindness, and compassion, noting that his impact and legacy would be remembered for generations to come.

“You were an avatar, a sports enthusiast, a rare gem committed to youth development, whose like comes only once in a lifetime. In you, we saw the true essence of leadership and kindness — not just in titles and positions, but in words and deeds.”

Advertisement

One of the deceased’s kinsmen, Joe Ezeike, said, “Ubah’s passing has left a void in the nation’s political landscape, but his legacy of service, compassion, and excellence will continue to inspire generations to come.”

Continue Reading

News

See Photos of World’s Tallest and Shortest Women Meet for Afternoon Tea in London

Published

on

The world’s tallest woman and the world’s shortest woman met for the first time this week, sipping tea from china cups — and bonding over what they have in common while celebrating their differences.

Jyoti Amge, shortest woman, and Rumeysa Gelgi, tallest woman, meet for the first time and share afternoon tea

Jyoti Amge, shortest woman, and Rumeysa Gelgi, tallest woman, meet for the first time and share afternoon tea

Jyoti Amge, shortest woman, and Rumeysa Gelgi, tallest woman, meet for the first time and share afternoon tea


Rumeysa Gelgi, from Turkey, stands at 7 feet and 0.7 inches, while Jyoti Amge, from India, is 2 feet and 0.7 inches.

Jyoti Amge, shortest woman, and Rumeysa Gelgi, tallest woman, meet for the first time and share afternoon tea

Jyoti Amge, shortest woman, and Rumeysa Gelgi, tallest woman, meet for the first time and share afternoon tea


Jyoti Amge, shortest woman, and Rumeysa Gelgi, tallest woman, meet for the first time and share afternoon tea

Jyoti Amge, shortest woman, and Rumeysa Gelgi, tallest woman, meet for the first time and share afternoon tea

Jyoti Amge, shortest woman, and Rumeysa Gelgi, tallest woman, meet for the first time and share afternoon tea


“You’re so beautiful,” said Gelgi, 27. “Thank you — you too,” replied Amge, 30.

Their meeting, over afternoon tea at London’s Savoy Hotel on Tuesday, came ahead of Guinness World Records Day, which is held annually in November to mark record-breaking achievements and encourage people to attempt records. The pair have been honored as “World Record icons” in the 70th anniversary edition of the Guinness World Records book.

Story continues below advertisement
“Meeting Jyoti for the first time was wonderful,” Gelgi said in a release Wednesday. “She’s the most gorgeous lady. I was waiting to meet her for a long time.”

Gelgi said the pair bonded over their love for makeup, jewelry and doing their nails.

Advertisement

Video footage showed them sitting down for tea, cakes and sandwiches stacked next to them, with the London Eye visible from the window.

Amge said in the release that she was “so happy to look up” and see the world’s tallest woman, whom she called “good-natured.” She added that it was difficult at times for the pair to make eye contact “due to our height difference.”

“Guinness World Records is all about celebrating differences,” its editor in chief, Craig Glenday, said in a statement ahead of Guinness World Record Day, which is on Thursday.

“By bringing together these two amazing, iconic women, they can share their perspectives on life with each other and, also, with us,” Glenday said.

Advertisement

Gelgi’s record-breaking height is due to a rare genetic condition called Weaver syndrome, which causes rapid growth, according to the National Organization for Rare Disorders.

Story continues below advertisement
The primary symptom is growth and bone development that occurs faster than usual, making those affected taller than average. People with Weaver syndrome may have rigid muscles and difficulty extending their elbows or knees.

Gelgi used a walking aid for support during the pair’s meeting. Her case of Weaver syndrome was the 27th ever diagnosed and the first in Turkey, according to Guinness World Records.

Weaver syndrome is generally caused by changes in the EZH2 gene, according to the NORD, though the organization notes that some people with Weaver syndrome do not have a mutation in the gene.

Advertisement

Story continues below advertisement
Amge, an actor who played the character of Ma Petite in the television series “American Horror Story,” has a genetic growth disorder that occurs in the early stages of fetal development, known as achondroplasia.

According to Johns Hopkins, the condition causes shorter bones, abnormally shaped bones and shorter stature. While the genetic defect can be passed from parent to child, in about 80 percent of cases, achondroplasia results from a spontaneous mutation that occurs in the developing embryo.

On Thursday, Gelgi shared photos on Instagram of the two exploring London despite the cold weather, posing side by side in front of Tower Bridge.

Advertisement
Continue Reading

Trending

Copyright © 2024 Naija Blitz News