• As Naira Sells N500 To One Pound At Parallel Market

The National President, Association of Nigeria Licensed Customs Agents (ANLCA)  Prince Olayiwola Shittu yesterday assured that Nigerian stakeholders, particularly the Customs brokers would totally support the ongoing effort between Nigeria and the Benin Republic, on ways and means of eliminating the problems currently affecting free flow of trade between the two countries.

Prince Shittu stated this when he led a delegation of his national and chapter officers to attend an interactive session between the Comptroller General of Customs, Hameed Ali and the Charge de Affairs in Cotonou, Madam Beatrice, on the invitation of Ambassador of Nigeria to the Republic of Benin to ANLCA.

National President of ANLCA-Prince Olayiwola Shittu delivering his keynote address

The charge de Affairs, Madam Beatrice specifically urged, in her opening remarks, for the collaboration of the CGC,  noting that the embassy has been bombarded with series of complains by traders/stakeholders whose problems, she hoped the presence of  CGC Ali would profer a lasting solution to.

Embracing her extended ‘olive branch’, Ali affirmed the fact that Borders are imaginary, as far as ECOWAS is concerned, and the Customs administrations must honestly work hard, and synergize to ensure that trade between our peoples are effected without unnecessary hindrances.

He highlighted further that not only should the different countries’ Customs cooperate and forge an understanding to move goods and services seamlessly, between countries in west Africa,  but fully cooperate in fighting crimes, more so, the crimes across the borders.

(L-R) DC Compt. Anyanwu, D/C Alhaji Wale Adeniyi-CPRO and A/C Dera Nnadi

The CGC who is billed to meet with his Benin Republic counterpart today (4th August 2016); in furtherance of finding solutions to the challenges of rice and vehicles smuggling, reiterated the need to review existing MOUs and agreements, with a view to bringing them in conformity with internationally accepted standards in trade, between countries, while stressing the need for both countries to address issues of dumping and smuggling across our borders.

Col. Hameed Ibrahim Ali also warned stakeholders to desist from unwholesome practices that impede trade facilitation across international borders, emphasizing that  everyone involved in the business of trading across West African countries must read the ETLS protocol and understand the laws as it affects their trade, so as to become sufficiently informed to challenge Customs whenever they feel marginalized; even as he painfully lamented the loss of seventy officers while combating smuggling within Idi Iroko and Seme areas, while affirming that the biggest problem confronting Nigeria Customs service till date is the lack of compliance on the part of traders, who make dishonest declarations.

The highlight of the session could however be found in ANLCA’s presentation, as Shittu in his address laid it bare, drawing the attention of the CGC to the expensive nature of doing business across the Benin-Nigeria border. In his words:

“Cost of transiting ETLS (Ecowas Goods) from Ghana to Lagos needs to be checked, to provide room for trade facilitation and trade competitions within the west African sub region. That is, a truck of ETLS cargo from Ghana pays 300,000cfa to exit Ghana into Togo and pays 400,000cfa to exit Togo into Benin Republic. The same truck will be charged 2,800,000cfa to ext Benin Republic into Nigeria, for reasons best known to Benin Republic Customs”,  Shittu indicated.

Still drawing the CGC’s attention to the real trade de-facilitators across the borders, the ANLCA Arrowhead said the multiplicity of security agencies had further aggravated the expenses incurred in transiting cargoes across the borders, demanding a review of these agencies drastically downwards.

The National President of ANLCA handed a copy of his address with attachments of previous communications on efforts made to solve numerous challenges being faced by stakeholders, to the CGC, who, along with DCGs Ukaigwe, Iya Abubakar Umar and Dan Ugo listened attentively, as they took notes, while Prince Shittu presented his keynote address.

Some attendees later suggested that the paper be adopted as a working tool.

Prince Olayiwola Shittu seized the opportunity to plead with the CGC to intervene on the exchange rate matter, even as he acknowledges that it’s a Federal Government of Nigeria/CBN policy issue. He said imports are drying up fast because of the unfriendly policy and it is robbing Government of much needed revenue and threatening thousands of jobs.

On the issue of DTI closures, the ANLCA President urged the CGC to hasten the process of allocating passwords to 2016 renewed Customs licenses, as most jobs have been left hanging, with the abrupt shutdown again of commercial DTIs. He said that the private DTIs will ensure that particular/specific licenses are immediately held responsible, whenever infractions occur.

When the Rice Millers Association’s Alhaja Karamatou Ibironke demanded to know the legal conditions for the exportation of Rice to Nigeria, so that they can abide by it;she was told by the CGC that though Rice had been banned through the land borders, it still enjoys total freedom to sail through the seaports where proper documentations would be effected.

However, Chief Alaba Lawson-Chairperson of NACCIMA, Ogun State branch who wondered how Rice gets into Nigeria massively, despite its ban through land borders, urged Customs to do more to curtail the trend or find a way to accommodate it, in order to generate revenue for the government; even as she suggested that the address presented by the National President of ANLCA be adopted as a working paper because it captures the essence of stakeholders complains.

In the meantime, the Nigerian naira recorded mixed performance across market segments as it strengthened at the interbank market, but crashed at parallel market, on Wednesday, August 3.

The local currency’s parallel (black) market value which had slipped to N381/$1 on Tuesday dropped a shocking 9 points to trade at N390/$1 yesterday, even as it also crashed to N500 to one pound and N422 to one Euro at the same market.

Contrariwise, the local currency on Wednesday appreciated at the interbank segment of the market as it closed at N311.06, compared to N316.83 to the dollar it exchanged for on Tuesday.

This is even as the naira exchanged for N415.8606 to the Pound Sterling and N352 to the Euro on Tuesday.

The naira has been under persistent pressure as dollar scarcity continues to weigh on the local currency at both the parallel and interbank forex markets. Economic and financial experts said inadequate forex liquidity at the interbank market was taking a toll on the parallel market.

Currency analysts at Cowry Assets Management Limited are worried that the increasing gap between the interbank market rate and the parallel market rates may create arbitrage and round tripping opportunities soon, even as they said there is likely to be sustained pressure on the naira as the green back remains in short supply.

In the just concluded week, the Nigerian naira depreciated against the U.S. greenback at all the foreign exchange market segments, as dollar liquidity remained tight at the interbank market. The local currency depreciated against the United States’ greenback, week-on-week by 7.02 per cent to N316.13/USD amid strain in dollar supply as Central Bank of Nigeria did not intervene in the Secondary Market.

Meanwhile, CBN settled $697 million in matured one month futures contract, being total settlement amount to its banking counterparts at N279/$ on Wednesday, 27 July, 2016. The expired contract was replaced by a new one year contract, naira/dollar July 19, 2017,with a total amount on offer of $1 billion at N250/USD.

Foreign exchange traders executed 51 deals worth $189.37 million between Monday and Thursday. The local currency also depreciated at the Bureaux De Change and the parallel (or “black”)market segments by 1.37 per cent  and 0.80 per cent  to N370/$ and N378/$ respectively as unmet dollar demand continued to spill into the alternative market segments.

Additional report from Tribune