On the heels of the adjustment of exchange rate on the single window for trade by the Central Bank of Nigeria (CBN), from ₦951.941/$1 to ₦1,356.883/$1 experts have predicted rise in inflation and significant reduction in the volume of import into the country.
This is even as they predicted that the consumers of imported goods are going to pay more while some basic goods will be out of reach of the masses.
However, since the fluctuation of exchange rate, inflation has been on the rise with price of goods hitting the roof top.
Africa Today News, New York recalls that the CBN on June 24, 2023 adjusted the exchange rate from N422.30/$1 to N589/$1 and on July 6, 2023 it was adjusted to N770.88/$1, on November 14, 2023, it was adjusted to N783.174/$1, December 7, 2023, it was adjusted to N951.941/$1 and currently, it is N1,356.883/$1.
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Clearing agents, however, stated that with N404.942 increment, cargoes will be abandoned at the nation’s seaports while prices of goods will go up.
Speaking with reporters, the Chief Executive Officer, Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf said: “We have enough problems with the exchange rate. Now we are having additional burden of import duty hike because it is like increasing import duty across board maybe by another 15 per cent or more that is what it is.”
Yusuf, a former Director General, Lagos Chamber of Commerce and Industry (LCCI), said the increase in exchange rate will further worsen the woes of importers.
He stressed that it will also lead to reduction in trade as cost of import will soar.
With the development, Nigerians are not bracing for tough times amid rising cost of goods and services in an economy that has been gasping for air since 2020.