Good News as CBN Slashes Customs Exchange Rate For Cargo Clearance by 7.3 Per Cent

• The Central Bank of Nigeria has slashed the Customs exchange rate duty clearance at Nigeria's ports
• The apex bank adjusted the rate from N1,605.82 to N1,488.896 per dollar on Friday, February 23, 2024
• The Central Bank of Nigeria has slashed the exchange rate for calculating Customs duties at Nigeria's seaports following the official market's appreciation of the Nigerian currency, naira.

Legit.ng's Pascal Oparada has reported Tech, Energy, Stocks, Investment and the Economy for over a decade

The Central Bank of Nigeria has slashed the exchange rate for calculating Customs duties at Nigeria's seaports following the official market's appreciation of the Nigerian currency, the naira.

CBN reviewed the downward exchange rate for cargo clearance from N1,605 to N1,488.896 per dollar on Friday, February 23, 224, as per information on the official trade portal of the Nigeria Customs Service.

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Customs exchange rate reduction will help importers

The review represents a 7.3% drop compared to the former rate of N1,605.82 per dollar used as of Thursday, February 22, 2024.

According to reports, findings that the adjustment is the second this year that the apex bank will slash the Customs exchange rate, which is expected to provide some relief to importers.

The continuous adjustment of the Customs exchange rate by CBN has drawn a backlash from many Nigerians who said the action would discourage importers and investors.

Obi criticises increases in Customs duty rate

The presidential candidate of the Labour Party, Peter Obi, criticised the increment, saying that the move would be counterproductive to investors.

Obi said the adjustments are killing businesses in the country as the rate keeps increasing and not allowing importers to plan.

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Obi said:

"A situation where at the point of initiating importation, Form M and other documents related to importation are based on a particular rate of exchange, for example, N1000 to $1, being the prevailing exchange rate at the time which the importer of goods was used to calculate the entire process, from the import initiation to receipt of goods in his warehouse," he said.

"Then suddenly, when the goods arrive in Nigeria, and duties are calculated at different rates, say N1400 to $1, it becomes a serious business challenge that results in business losses. Worse still, it directly fuels the inflationary spike which is the basis of increasing cost of goods and living."

CBN adjusts Customs FX rates six times

Legit.ng reported that the last adjustment was done on Thursday, February 22, 2024, at N1,605 per dollar.

The apex bank has adjusted the rate six times in the last five weeks as the naira continues its volatility.

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The development comes as the naira strengthened against the US dollar in the official market.

The naira appreciates in the official market

After falling to a record low, the naira appreciated against the US dollar in the official foreign exchange market on Wednesday, February 21, 2024.

Data from FMDQ Securities showed that at the Nigeria Autonomous Foreign Exchange Market (NAFEM), the naira closed at N1542.5$ on Wednesday.

This improved from the N1,621.41 exchange rate record set on Tuesday, February 21, 2024.

Participants carried out a total of $172.14 million in transactions during the trading session on Wednesday at the official market.

CBN data revealed that the naira maintained stability against the pound sterling and the euro in the spot market on Wednesday, exchanging at N2,023.64/£1 and N1,729.36/€1, respectively.

Nigeria Customs begins distribution of free food

Earlier, Legit.ng reported that the Nigeria Customs Service (NCS) has begun the distribution of seized food items across Nigeria.

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The comptroller-general of Customs, Adewale Adeniyi, stated that the Nigerian government had asked that the seized food items be distributed to ease Nigerians' current hardship.

Source: Legit.ng