Amiwero Writes Tinubu, Calls For Fixed Exchange Rate

BY EGUONO ODJEGBA

Popular and outspoken maritime economy expert and commentator, Mr. Lucky Eyis Amiwero has appealed to President Bola Ahmed Tinubu to deploy a realistic approach to solving the prevailing hardship suffered by citizens by adopting a fixed exchange rate for payment of import duty.

Amiwero who is also the President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA) in a letter to President Tinubu revealed that government’s policy thrusts that has thrown up major dislocations in the fiscal system is forcing manufacturing concerns, importers and traders to either slow down and embark on the rationing of importations owing to policy uncertainties and market unpredictability.

Experienced, knowledgeable and foresighted, Amiwero known to have served in several presidential committees noted in his letter to the president that the issue of floating exchange rate affecting import and consequently the survival of the common man must be pragmatically and timely addressed.

He lamented that calculation of import duty based on the forex market has made the prices of consumption items and products overly expensive and unbearable for the poor masses.

Accordingly, he called on President Tinubu to use his good office to direct his economic management team bridge to adopt measures that will bridge the growing uncertainties associated with clearing imported goods from the ports due to exchange rate fluctuations.

The letter reads in part: “We once more bring to the attention of the Federal Government the difficulties faced by the Nigeria public, soaring price of goods in the market due to the floating exchange rate use in computing Import duty, which has adversely affected importation drastically, transportation, food stuffs , which is very difficult to come by, especially the down trodden who live from hand to mouth and have nothing to fall back on.

“We are much concerned about the uncertainties built around the clearance of goods, on the application of exchange rate from the liberalized floating FOREX market, creating abnormal increase in the final sales of price of goods, which is largely driven by policy inconsistency, unpredictability that adversely affect the Nigerian Traditional market and its citizen, as stated in your circular TED/FEM/PUB/PC/1001/007 OF February 23, 2024.

“As a member who served in various Federal Government Committee, which includes: Presidential Task Force on the Reform of Nigeria Custom Service, Presidential/ Central Bank committee on Destination Inspection, Presidential Committee on the Realization of 48Hours clearance, Presidential Committee of Port problems, Ministerial Committee of Import Clearance procedures and implementation of Fiscal Policies, Inter-ministerial Committee/ Task force on the review of Port Charges, National Facilitation Committee of FAL/IMO just to mention a few, we are much concern about the uncertainties built around the clearance of goods, on the application of exchange rate from the liberalized floating FOREX market, creating abnormal increase in the final sales of price of goods, which is largely driven by inconsistent and unpredictability that adversely affect the Nigerian Traditional market and its citizen, as stated in your circular TED/FEM/PUB/PC/1001/0.

The letter continues: “The liberalization of the FOREX on floating exchange rate principle, has major concerns of imports of goods and service, in the irregular and high exchange rate that has adversely affected the general well-being of Nigerians, which has trigger economic effect.

“As a result of the effect, there is need to manage the home front by adopting measures that will remove uncertainties, unpredictability and inconsistency in the application of the Rate of exchange, so as to stabilize the domestic trading Environment, that is volatile as a result, many importers are afraid to go in for further shipment, especially sourcing for FOREX and at the same time sourcing for payment of Import duty using the same exchange rate.

“This has adversely affected the Manufacturing sector, Small and Medium scale sector, informal sector of the economy and traditional Market where majority of items are either not available or people are limited with purchasing power to purchase them”

“To bring back the economic life of the nation, there is the need to adopt manageable stabilized exchange rate for the Payment of Import duty, so as to trigger the economy on the trading front and generality of Nigerians.”