Automobile manufacturers and importers association in Nnewi, Anambra State, has cried out over what it described as the Federal Government’s steady increase in customs duties.
President of the association, Austin Jideofor, told Daily Sun in Nnewi, yesterday, that the continuous rise in customs duties has been responsible for hardship in the country with its negative consequences on the final consumers.
He said his association observed with dismay that government seemed to have directed the customs to continue to increase duties on a monthly basis.
“So, we don’t know if they feel that will solve the economic problems of the country. This regular increase of customs duties brings more hardship to the Nigerian masses. And they won’t listen to us because they want to generate revenue.
“In January alone, container duties were increased two times. So, we are facing a big challenge as far as importation business is concerned.
“The percentage increase is over 30 because before, we were paying benchmark of about N4 million and now it has increased from N4 million to over N6 million, almost N9 million as at the time of granting this interview. It is still increasing; how can you explain that?
“They are using the increase in exchange rate to determine what we pay as duties. We are in a serious mess. You know there are lots of bottlenecks created by Nigerian government. You must pass through those bottlenecks before you clear a container. By the time you finish the rigorous process, you know what it entails.
“It is only abroad that you can go and pay your duties at a bank and your container will be released to you because a scanning machine is already there to say this is what you imported and no rigorous process. It is not like that in Nigeria here. Even in a neighboring African country like Cotonou, it is quite easy there. They call it benchmark. But in Nigeria, they will say benchmark and you see agencies involved in the process.
“A situation where Standard Organization of Nigeria (SON) has cleared goods abroad for shipment, you go to Apapa and see SON waiting again and say they want to confirm, that is not a welcome development.
“And this SON has their sister agencies throughout the world but when you come back to wharf here this same SON will come behaving as if they didn’t clear the goods abroad. You continue to see them at any stage. And by the time you finish paying all these duties, they are transferred to the final consumers who bear the brunt,” he said.
He noted that transporters who convey the imported goods to their destinations use fuel or gas-based on the prevailing pump prices which, he said, had been on the high side thereby increasing the prices of goods.
He disclosed there were about 78 customs checkpoints from Lagos to Anambra State and 16 of them from One to Nnewi, saying drivers would be paying as they got to the checkpoints leading to huge expenses.
Jideofor said government needed to look into the numerous checkpoints with a view to removing them, since the appropriate officials, according to him, had cleared their goods at the wharf and their imported goods were not contraband.
“We are still running the same type of government, and nobody tries to copy what obtains abroad. Who will be our Messiah?
“Look at the exchange rate which was N650 per dollar in the last (Buhari’s) administration and we were crying. Look at it now getting above N1,500 per dollar. How can we solve this problem?
“A motorcycle Tyre last year was around N9,000 per one but now as I am talking to you, the price is N19,000 per one. That is how the prices of other things are also increasing.
“Since we do not import contraband goods, let them give us a benchmark so that once we pay, we carry our goods. This system is corrupt,” he said.
He appeals to President Bola Tinubu to look into what he called outrageous increase in container duties which he said had been contributing to hardship across Nigeria.
Jideofor said the increase in the price of dollars should not determine the increase in import duties. He insisted import duties should not be increased based on the rise of dollars.
“As soon as Mr. President orders a halt to the increase in import duties, hardship will drop.
“Regulators are looking at the exchange rate. Nigeria is the owner of the wharf. Before now, some people were going to Cotonuo to clear their goods. We are jubilating that our refineries will soon start functioning so that the prices of petroleum products will go down.
“But the same thing will continue to happen, if the regulators look at the price of dollar to fix the petroleum products prices.
“I travelled to Iran not long ago and a friend of mine, a citizen of that country told me he was entitled to 50 litres of fuel every day because they are owners of the oil, what about Nigeria? Nigeria owns oil and they should follow the Iran example,” he said.