Importers in Nigeria are calling for a stable duty regime for the importation of raw materials to stimulate local production and create jobs.
According to importers, a predictable duty structure for raw materials, rather than finished goods, will shift Nigeria from a consumption-based economy to a production-driven one.
Emeka Chukwumalu, an importer, emphasized that the government needs to relax certain policies affecting importers. He pointed out that the instability in duty regimes makes it challenging for importers to plan their business ventures. He further explained that importers often face difficulties in securing loans because of the unpredictable cost structure, leading to abandoned consignments at the port.
“Unstable duties make it hard for importers to operate. A fixed duty regime for at least a year would help importers plan their business and avoid disruptions,” said Chukwumalu.
Lanre Alasan, another importer, noted that many businesses have closed due to fluctuating import duties. He highlighted the steep rise in costs, with clearing a 40ft container now costing between N13 million and N25 million, compared to about N6 million previously. These additional costs are passed on to consumers, making goods more expensive.
Alasan added that the government’s high tariffs are straining the economy, forcing businesses to make losses and leaving them unable to meet financial obligations.
To address these issues, he urged the government to engage with stakeholders and work towards reducing tariffs, which would ultimately lower the cost of goods and ease the burden on consumers.
He also pointed out that high tariffs are impacting local production, as seen in the rising cost of locally produced goods, like a bottle of Coca-Cola now selling for N500.
