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Nigeria: Tax committee wants Customs duty rate pegged at N800/$

Published

7 months ago

June 2, 2024

An exchange rate of N800 per dollar for customs’ import duty for the remainder of the year has been suggested by the Nigerian Presidential Committee on Fiscal Policy and Tax Reforms.

This will be a significant difference from the current situation, in which customs duties are modified arbitrarily—sometimes twice a day, with a total of around 40 adjustments made this year. The value has also fluctuated sharply with the foreign exchange rate, ranging from N900 to N1,700 to one US dollar this year alone. This situation has drawn criticism from a broad variety of economic sectors.

Taiwo Oyedele, the committee’s chairman, revealed the new course of action yesterday during a speech about the tax panel’s operations in Lagos. The tax expert, a former partner at PwC Nigeria, claimed that firms are unable to prepare effectively because of the Nigeria Customs Service’s (NCS) frequent adjustments to the import duty rate brought on by the foreign currency market’s volatility.

His words: “When we did the budget, we said naira to the dollar will be N800, now it is way more than N1,000. People need to plan.

“So now, we are saying to the government, can you please sign an order that says for paying import duty, we shall use N800 for the rest of the year, till December. So, we have proposed N800.”

For import tariffs, customs usually uses foreign exchange rates that the Central Bank of Nigeria (CBN) recommends based on trading activity in the official foreign exchange market. This strategy has drawn criticism from numerous analysts who point out that it is detrimental to companies since it causes chaos in company planning.

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, suggested that the Customs establish a quarterly exchange rate for the assessment of import tariffs between N800 and N1000 as a workaround.

Oloyede added that the group has suggested merging the nation’s more than 100 separate tax collection organizations at the federal, state, and local government levels into the Nigerian Revenue Service, a single, central tax organization. According to him, the group also suggested instituting long-term appropriation and zero-based budgeting.

“The budget must be restructured to classify items under infrastructure, human capital investment, personnel cost and productivity, administrative overheads, debt service and sinking funds,” he said.

Related Topics:Featured Nigeria Taiwo Oyedele

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Moroccan annual inflation rises to 0.8% in November

Published

1 day ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

2 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”