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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.

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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.

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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.

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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.

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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.

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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.

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500 lawyers set to defend Utomi against DSS

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A professor of Political Economy, Pat Utomi, on Friday said he is receiving support from some Nigerians who are planning to mobilise 500 lawyers to defend him against the Department of State Services.

Utomi revealed this in a post on X.

“It’s energising (that) some want to put together 500 lawyers to defend me against the DSS,” he said.

The DSS had sued Utomi over his alleged plan to establish what he calls “a shadow government” in the country.

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According to the suit filed at the Federal High Court in Abuja, the DSS prayed the court to declare the move an attack on the Constitution.

The professor of Political Economy, who is the 2007 presidential candidate of the African Democratic Congress (ADC), was sued as the sole defendant.

In the suit filed on May 13 by a Senior Advocate of Nigeria, Akinlolu Kehinde, the agency contended that the move by Utomi was intended to create chaos and destabilise the country.

The DSS had argued that the planned shadow government was not only an aberration but also constituted a grave attack on the Constitution and a threat to the democratically elected government currently in place.

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However, Utomi said he was gladened by the solidarity he had received from across the country.

“I am heartened by messages of solidarity from across Nigeria on this shadowy business of chasing shadows of shadow cabinets. Reminds me of the Nigeria I used to know. I want to thank all.”

The planned shadow cabinet was greeted by reactions from several Nigerians, including a former presidential candidate and activist, Omoyele Sowore, who said it was an ineffective symbolic gesture that lacked real-world impact on Nigeria’s pressing challenges.

Speaking during an interview on Inside Sources on Channels TV on Sunday, Sowore argued that the idea of a shadow cabinet was futile in a country where the existing government is itself opaque and largely unaccountable.

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He said, “Well, how do you replace a shadow government with another set of shadowy governments? I would not begrudge anybody who thinks of solutions that can bring awareness to the people.

“But I do not think that setting up a government with names of people who call themselves a shadow government makes any difference.”

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Police Speaks on Viral Video of Young Men Arriving in Ibeju-Lekki

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The Lagos State Police Command has issued an official statement addressing a viral video that sparked concern on social media, showing a large group of young men reportedly arriving in Lagos and gathering near the Dano Company premises in Ibeju-Lekki.

According to the Command, the incident occurred on May 14, 2025, prompting swift deployment of officers to the scene for investigation. The police confirmed that the individuals—eighty-nine in total—had arrived from Katsina State to work as labourers at the Dangote Refinery in Lekki.

A contractor affiliated with the refinery informed the police that he personally recruited the workers for legitimate employment, a statement corroborated by the refinery’s Chief Security Officer (CSO). All individuals were cleared for entry and are expected to reside within the refinery premises.

The police confirmed that thorough checks were conducted, revealing no incriminating materials. The labourers also presented valid National Identification Numbers (NINs), which were successfully verified by the authorities.

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Commissioner of Police, CP Olohundare Jimoh, urged the public to refrain from spreading unverified information that could incite panic or tension. He assured residents of the Command’s continued commitment to public safety and swift response to potential threats.

Police Public Relations Officer, CSP Benjamin Hundeyin, signed off on the statement, reaffirming the Command’s dedication to transparency and law enforcement in Lagos State.

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Finland charges Simon Ekpa with inciting terrorism

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Finnish prosecutors on Friday said they had charged a man with inciting terrorism online who a media report identified as Nigerian separatist leader Simon Ekpa.

Finland’s National Prosecution Authority said in a statement that it had charged “a Finnish individual in a case involving suspected public incitement to commit crimes with terrorist intent and participation in the activities of a terrorist group.”

It added that the alleged crimes had been committed in the city of Lahti between 2021 and 2024 and were related to the suspect’s efforts to establish Nigeria’s Biafra region as an independent state.

The prosecution authority did not name the accused but Finnish public broadcaster YLE identified him as separatist leader Simon Ekpa.

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Ekpa — who claims to lead the Biafra Republic’s government in exile — was detained in November.

According to the prosecution authority, the accused remained in custody and denied the charges.

Ekpa is known as a self-proclaimed leader of a faction of the Indigenous People of Biafra (IPOB), which is pushing for the independence of Nigeria’s southeast, where a bloody civil war was fought in the late 1960s.

The dual Finnish-Nigerian national has also been a local representative for Finland’s conservative National Coalition Party in the city of Lahti, north of Helsinki, where he has served on a public transport committee.

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When Ekpa was arrested, Finnish authorities also requested that four other people be remanded in custody on suspicion of financing Ekpa’s activities.

On Friday, the prosecution authority said the prosecutor had decided to drop charges against four others in the case due to a lack of evidence.

Ekpa has been the subject of several of AFP’s fact checks in recent years over false claims and disinformation he has made in independence campaigning.

AFP

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