After Setting Customs Rate Above N1,500/$, CBN Puts Limits on Prices of Imported, Exported Goods

After Setting Customs Rate Above N1,500/$, CBN Puts Limits on Prices of Imported, Exported Goods

  • The central bank has ordered banks not to sell imported items above 2.5% of the average global average prices
  • It also set the limit for price deviation for exports and imports to -15% and +15% of the global average prices
  • This followed earlier increased the exchange rate for computing customs duties at the nation's seaports

Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.

The CBN has implemented a price verification system for goods imported and exported.

After setting custom rate above N1,500, CBN introduces limits on prices of imported, exported goods
The CBN advised the authorised dealer bank and the general public to note and comply with its new directive. Photo Credit: CBN, PeopleImages
Source: Getty Images

The bank, in a circular signed by Dr Hassan Mahmud, director of trade and exchange, said this is to curb over-invoicing of imports and under-invoicing of exports.

It stated:

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“Following the implementation of the price verification system (PVS) to curb over-invoicing of imports and under-invoicing of exports, the CBN in a circular referenced TED/FEM/FPO/PUB/01/001 stated that declared prices of import items that are more than 2.5% above the global average prices of the referenced items will be queried.
“However, due to global inflation and other related challenges, the CBN has reviewed the allowable limit of price deviation for exports and imports to -15% and +15% of the global average prices, respectively.”

It advised the authorised dealer bank and the general public to note and comply accordingly.

For further clarification, the circular emphasised that the PVS is not intended to establish the actual prices of items for tariffs or government duties.

Instead, it said its purpose is to assist the CBN in restricting the excessive outflow of limited foreign exchange due to practices such as over-invoicing and other forms of price manipulation.

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Earlier Legit.ng reported that the CBN increased the exchange rate for computing customs duties at the nation's seaports.

The rate was reviewed upward on Thursday morning, February 15, 2024, from N1, 481.482/$ to N1515.092/$.

The new rate was posted on the official trade portal of the Nigeria Customs Service on Thursday, February 15, 2024.

This means importers will pay more to clear their goods, as import duties are benchmarked against the dollar.

CBN gives new instructions to Nigerian banks

Legit.ng reported that the CBN instructed Nigerian banks to stop paying customers personal and business travel allowances in cash.

It said this in a circular signed by Dr Hassan Mahmud, director of the trade and exchange department.

The apex bank said that the payments— including through debit or credit cards – will now be through electronic channels only.

Source: Legit.ng

Zainab Iwayemi avatar

Zainab Iwayemi (Business Editor) Zainab Iwayemi is a business journalist with over 5 years experience reporting activities in the stock market, tech, insurance, banking, and oil and gas sectors. She holds a Bachelor of Science (B.sc) degree in Sociology from the University of Ilorin, Kwara State. Before Legit.ng, she worked as a financial analyst at Nairametrics where she was rewarded for outstanding performance. She can be reached via zainab.iwayemi@corp.legit.ng

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