FLOATING EXCHANGE RATE POTENTIALLY DETERS INVESTMENT
—Azeez Abayomi Mustapha
Once you encounter a core professional in any field, there is this aura of confidence around him that makes you forgo further search for a better handler and settle for his choice.
Azeez Abayomi Mustapha, RFFI, FIMS,(Dip.IMS) is a seasoned Freight Forwarder and Logistics Provider.
His venture into Aviation/Maritime industries in the year 2000 was never a mistake but a commendable decision. Because of his clarity of vision, hard work, resilience and amazing level of humility laced with insatiable appetite for knowledge, he is today the darling of a good number of Multi-ntional companies who form the bulk of his highly esteemed clients.
The cerebral Managing Principal of AZ DE WORLD CARGO LOGISTICS LTD.(Aka AZ Logistics), a company he founded and registered in 2010, after a decade of very committed apprenticeship and enrollment in relevant professional courses, brilliantly diversified into Ocean-freighting, Air freighting, DDU, DDP and EXW, Door to Door Delivery, Project Handling, Break Bulk, Customs Clearance, International freight forwarding, Government Agency Relations, Import and Export Documentations and International Trade Consultancy.
On challenges being faced by Importers, especially at a time of floating exchange rate which has made the Nigeria Customs Service (NCS) resort to 846 valuation system to lessen the financial burden of outright import duty payment based on Dollar exchange rate, Fwdr. Azeez Abayomi Mustapha said that,
“Floating exchange rate can significantly impact an economy by introducing volatility in exchange rates. This can lead to fluctuations in import and export prices, affecting trade balances. While it may enhance competitiveness by allowing currency values to adjust to market conditions, it can also lead to uncertainties and potentially deter investment due to unpredictable financial outcomes.”
“Currency fluctuation can affect inflation by influencing import and export prices, which in turn, can impact the costs of goods and services within an economy. Significant changes in currency value can lead to adjustments in inflation rates, as seen in the dynamics between currency market fluctuations, trade balances, and inflation. The effect of above on an economy will definitely affect interest rates.”
“Interest rates influence consumer spending by affecting borrowing costs. Higher interest rates make loans more expensive, discouraging borrowing and spending. Conversely, lower interest rates reduce borrowing costs, encouraging spending and investment.”
“Interest rates and inflation tend to move in the same direction but with lags. Policymakers adjust interest rates based on data to estimate future inflation trends. Lowering interest rates can stimulate economic activity by making borrowing cheaper, potentially increasing spending and investment, which can lead to higher inflation.”
“In the last one year, Nigeria has witnessed exchange fluctuations, price increases, interest rate increases cum inflation, worse still is the unpredictability of the exchange rates. Today, farmers have learnt to check international markets for rates, product prices are fast becoming globally uncompetitive, buyers are jittery, importers are afraid, orders are being suspended, to minimize risk and exposures, mostly waiting for a noticeable stability.”
“There is a need to review all these economic parameters against past historical trends and dependencies, study and adopt best practices of functioning and result driven economies to save our situation. It’s tough on the masses.”
With a staff strength of 10, directly in his employ, and over 20 auxillary staff in charge of field operations, AZ DE WORLD CARGO LOGISTICS LTD has continued to grow in leaps and bounds, leveraging Information Technology (IT) and capacity building programmes available on professional platforms.
With a robust number of clients from the food industry to Solar industry, Automobile, IT, Telecom, Electrical/Electronics, Power Sector, Pharmaceuticals, Transportation Industry, Offshore Support, Project Cargo and special transportation as well as patronage by State Governments and private importers, the company has continued to professionally offer a comprehensive range of freight forwarding and logistics services.
The Avi/Maritime Entrepreneur expects business friendly policies and moderation on the part of government in order to save the economy.
On declining cargo throughput and high revenue generation by the Nigeria Customs Service-NCS, Azeez Abayomi Mustapha said, “unfortunately, importers are the ones bearing the brunt.”
