More industries that are dependent on imported raw materials may shut down in coming months while Nigeria Customs Service revenue is expected to decline as imports through official channels become more difficult due to high import duty, a new research report has revealed.
The Central Bank of Nigeria had on Thursday increased the exchange rate for cargo clearance from N783/dollar to N952/dollar.
Clearing agents and importers had said the development would deplete the fortune of operators in the maritime sector, lamenting that the industry was already reeling under the burden of a worsening business climate.
The new report was released on Sunday by the Centre for Promotion of Private Enterprise, a local think tank.
The Chief Executive Officer of CPPE, Dr. Muda Yusuf, in the report said the hike in exchange rate for cargo clearance was a greater incentive for smuggling.
Before Thursday’s hike, the CBN had in June adjusted the exchange rate from N422.30/$ to N589/$.
In July, it was re-adjusted to N770.88/$, and again in November, it was re-adjusted to N783.174/$.
Muda Yusuf said that the latest review would make the cost of importation through official channels even more prohibitive.
