Peter Obi Warns: End Erratic Duty Charges or Risk Empty Harbors

iexclusivenews – Nigerian ports are bracing for a potential exodus of importers as inconsistent and skyrocketing customs duty charges threaten to cripple businesses.

This alarming situation, highlighted by former presidential candidate Peter Obi, demands immediate action from the Federal Government to prevent further economic decline.

The Problem

Erratic Exchange Rates: The government has revised the customs exchange rate for imports nine times since President Tinubu took office, creating immense uncertainty for businesses.

This inconsistency makes accurate cost calculations impossible, leading to losses and hampering economic planning.

Skyrocketing Duties: The exchange rate for duty collection has seen a five-fold increase, jumping from N422.30 per dollar in June 2023 to a staggering N1,605 today.

This drastic hike makes imports significantly more expensive, impacting businesses and ultimately consumers through higher prices.

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The Impact

Business Closures and Job Losses: Obi warns that these arbitrary charges will lead to further business closures and job losses. With calculations based on initial exchange rates, sudden increases create financial strain and force businesses to shut down.

Port Underutilization and Revenue Loss: If importers resort to using ports in neighboring countries, Nigerian ports will suffer from underutilization, leading to significant revenue loss for the government and further deepening the economic crisis.

Manufacturing Decline: Businesses, especially manufacturers, are struggling to survive due to inconsistent policies and high costs.

This threatens the critical engine of economic growth and undermines efforts to create jobs and boost the economy.

Peter Obi’s Call to Action

End Inconsistency: Obi urges the government to end the inconsistency in duty charges and adopt a stable exchange rate for customs purposes.

This will allow businesses to plan effectively and avoid financial losses.

Support Businesses: The government should prioritize supporting businesses, especially manufacturers, by implementing policies that promote growth and stability.

This includes reducing unnecessary costs and providing a predictable economic environment.

Reasonable Cost of Living: Peter Obi emphasizes the need to ensure reasonable cost of living for Nigerians.

Targeting high customs revenue at the expense of affordability is detrimental to the overall well-being of citizens.

Conclusion: The Nigerian government must act swiftly to address the concerns raised by Peter Obi and countless businesses.

By implementing consistent policies, prioritizing business support, and ensuring reasonable costs.

The government can prevent further economic decline and create a more stable and prosperous future for all Nigerians.