The Nigerian House of Representatives has called on the Central Bank of Nigeria (CBN) to maintain the system exchange rate, preferably at N951.94/$1, to promote patronage in Nigerian ports and control the prices of goods and services. This resolution follows the adoption of a motion on the “Need to rescue the Nigerian economy from imminent collapse and restore investors’ confidence in the system.”
Mr. Leke Abejide, representing Yagba East/Yagba West/Mopamuro Federal Constituency in Kogi State, brought the motion to the House floor. He emphasized the importance of a stable exchange rate for business planning, stating that the frequent customs exchange rate adjustments were causing disruptions and volatility in the currency market.
The motion expressed concern about Nigerian importers shifting towards ports in Tema, Ghana, Lome, Togo, and Cotonou, Benin Republic, resulting in a substantial decrease in cargo importation and business activities at Nigerian seaports. To address this, the lawmakers urged the CBN to maintain the system exchange rate for customs and excise duty purposes below N1.000/$1, preferably at N951.94/$1.
Additionally, the House called on the Finance Ministry and the CBN to provide adequate notice to stakeholders in the maritime industry and the general public before altering customs exchange rates, ensuring transparency and allowing stakeholders to prepare for any changes. The Finance Ministry was also encouraged to implement international best practices, allowing a 90-day grace period for fiscal policy changes to complete ongoing transactions under existing policies.
The Committees of Customs and Excise, Finance, and Banking Regulations were mandated to engage with the Minister of Finance, the CBN Governor, and the Comptroller General of the Nigeria Customs to explore how a fixed exchange rate for customs and excise duties could boost exports and encourage patronage in the nation’s ports.
