Importers have decried the high cost of importing goods through the seaports. Many importers, investigation has shown, have abandoned their cargoes at the ports because of high exchange rate and demurrage charges at the port.
Investigation by The Nation revealed that the cost of importing cargoes through the nation’s sea ports has increased by over five per cent because the exchange rate for all imports has gone up from N361 to N381 per dollar.
An importer, Mr Segun Ogunjobi, berated a situation where the bank has banned middle men in the opening of form M.
He said dealing with manufacturers is not a tea party. “Although we are aware that rising level of imports and a growing trade deficit can have a negative effect on a country’s exchange rate, but we believe that the reason the CBN took the action is because the Nigeria Customs Service (NCS) generated N1.341trillion last year, exceeding its target of N937 billion by 12 percent above N1.20 trillion generated in 2018.
‘’The Federal Government wants more money from Customs and other maritime agencies and that was why they took the action,” Ogunjobi said.
He further argued that if the move by the Federal Government was to assist NCS in achieving its projected revenue target of N2 trillion, the increase would lead to more demurrage as many importers would leave their cargoes unclaimed at the ports.
A maritime lawyer, Dr Dipo Alaka, said the CBN took the decision to save the economy from collapse. He added that N10 to N20 increment would go a long way to bridge the depleting revenue target, especially since the outbreak of COVID-19.
He urged the CBN to support importers through flexible loans with low-interest rates, adding that the maritime sector was the only place available for government to boost the economy and generate employment, especially at a time when the price of crude oil, which the country depends upon, had already collapsed globally. The maritime expert urged CBN to exempt all approved Form M in the port and high sea from the new import exchange rate.
The National Association of Government Approved Freight Forwarders (NAGAFF) has also learnt its voice to the development, calling for the review of the implementation of the CBN foreign exchange policy for duty payment by Importers operating at the port.
Similarly, the Shippers Association of Lagos State (SALS) said the increase in the exchange rate for cargo clearing has led to shortage of raw materials used by the manufacturing sector, saying that the decision by the bank to hike the exchange rate for importers is affecting the fragile economy, especially the manufacturing sector and other importers.
The President of SALS, Rev. Jonathan Nicol, fears that industries, importers and exporters would be forced to source for additional funds to clear their cargoes trapped in the ports due to the coronavirus pandemic.
Nicol said: “The new rate does not reflect on Form ‘M’s already approved by the Central Bank of Nigeria. It is the approved rate on Form M that is used to procure foreign exchange for each shipment and also effect transfers to suppliers.”
