Labour Party’s 2023 presidential candidate, Peter Obi, has urged the Bola Tinubu-led federal government to address the irregularities in duty charges that are negatively impacting the country’s business environment.
In a recent post on his verified social media account, Obi warned that such unpredictable charges could lead to more business closures and subsequent job losses.
He stated, “I urgently appeal to the Federal Government of Nigeria to address the irregularities in duty charges that are currently affecting the country’s business climate. The government must halt the arbitrary and escalating customs duties, which are now adversely affecting businesses and the cost of goods, posing a significant threat to the economy.”
Obi further explained the challenges faced by importers due to the fluctuating exchange rates. He said, “When initiating an import, Form M and other import-related documents are based on a specific exchange rate, for instance, N1000 to $1, which is the prevailing rate at the time the importer calculates the entire process, from import initiation to receipt of goods in his warehouse. However, when the goods arrive in Nigeria, and duties are calculated at different rates, say N1400 to $1, it becomes a serious business challenge resulting in business losses. This situation directly fuels the inflationary spike, which is the basis of the increasing cost of goods and living.”
Obi warned that such arbitrary charges could lead to further business closures and job losses. He added, “If this situation is not rectified, our importers may resort to using ports of nearby countries, leaving our ports underutilized and further worsening our economy due to loss of revenue.”
He also called on the government to maintain consistency in its policies to aid economic forecasting and business planning. He noted, “Businesses are failing, and manufacturers are closing down due to the government’s poor and inconsistent economic policies.”
Obi emphasized that the government’s efforts should be focused on supporting businesses, particularly those in the manufacturing sector, to sustain their operations and contribute to economic growth, as the small business sector remains the most crucial engine of economic growth.
He concluded, “We cannot afford to prioritize high customs revenues at the expense of local businesses’ survival, employment, and a reasonable cost of living.”
