Tax Reform Panel Recommends N800/$ Rate for Customs Duties

The Presidential Committee on Fiscal Policy and Tax Reforms has proposed that the federal government adopt a fixed exchange rate of N800 per US dollar for customs import duties.

This recommendation was made by the committee’s chairman, Taiwo Oyedele, during a press briefing in Lagos on Thursday. Oyedele emphasized the challenges businesses face due to the volatility of the foreign exchange (FX) market, which results in frequent changes in import duty rates. He stressed the need for a stable exchange rate to enable better business planning.

“When we did the budget, we said the naira to dollar rate would be N800; now it is over 1,000. People need to plan,” Oyedele stated. He urged the government to sign an order establishing the N800 rate for customs import duty for the remainder of the year.

This proposal follows recent adjustments by the Nigerian Customs Service (NCS) to the FX rate for tariffs and duties. On May 27, the NCS set the rate at N1,480 per dollar, following recommendations from the Central Bank of Nigeria (CBN) based on official FX market trading activities.

Muda Yusuf, the director-general of the Centre for the Promotion of Private Enterprise (CPPE), also commented on the issue. On May 16, he suggested that customs should adopt a quarterly exchange rate between N800/$ and N1000/$ for import duties assessment to provide more predictability for businesses.

Taiwo Oyedele’s call for a fixed rate of N800 per dollar aims to address these concerns and promote better economic planning and stability for businesses involved in importation.

The committee’s recommendations are part of broader efforts to reform Nigeria’s fiscal and tax policies to enhance economic growth and stability.