CBN Raises Customs Dollar Rate to Clear Goods as Naira Sets New Record in Official, Black Markets
- CBN has once again increased the Nigerian customs import duty exchange rate to above N1,500 a dollar
- This development follows the depreciation of the Naira against the US Dollar in the official and black market
- Nigerian economist Muda Yusuf explained to Legit.ng the impact of the changes on Nigerian economy
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Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.
The Central Bank of Nigeria (CBN) has adjusted the Nigeria Customs import duty exchange rate again.
The latest federal government trade portal data shows that the Customs exchange rate for clearing goods is now N1,537.073 to the dollar.
Source: Facebook
This represents a 2.9% increase from the previous rate of N1,493.23 as of Saturday, February 17, 2024.
The development once again highlights the continued depreciation of the Naira in the foreign exchange market.
Legit.ng had previously reported that the Nigeria Customs had adopted the floating naira regime and charged importers based on the prevailing exchange rate.
The new system has sparked reactions among stakeholders, including experts, economists, and businesses, who fear that the rate could increase the prices of imported goods, further burdening consumers.
Lawmakers, in reaction, have also demanded the CBN to allow the import duty rate to be fixed below the N1,000/$ exchange rate.
Naira to dollar exchange rate
The future even looks more worrisome for importers and consumers as the Nigerian currency continues its free fall.
Data from FMDQ shows that the United States Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) sold at almost N1.600/$1 on Monday, February 19, 2024.
The Naira depreciated by 3.9% or N60.58 against the dollar in the official market, quoting at N1,598.54/$1 compared with the previous day's N1,537.96/$1.
In the Peer-to-Peer (P2P) window, the Naira weakened by N79 yesterday, settling at N1,707/$1 versus the previous trading session's N1,628/$1.
Additionally, the Nigerian currency weakened against the dollar in the parallel market on Monday by N80, selling at N1,720/$1 compared with the preceding session's rate of N1,640/$1.
Expert reacts
Reacting to the latest Nigerian Customs exchange rate, Muda Yusuf, the Chief Executive Officer of the Centre for the Promotion of Private Enterprises voiced his concern on the latest changes.
He explained to Legit.ng that the current changes have led to cost of cargo clearance at the ports rise by over 40% in the last two months.
He stressed that the high exchange rate for import duty assessment is fueling the already high inflation, increasing production and operating costs for manufacturers and other businesses.
His words:
"In the light of this, the CPPE strongly appeals to the CBN to peg the customs duty exchange rate at N1000/$ for the rest of the year in line with the federal government’s commitment to ease the current hardships on the citizens and the burden on businesses"
FG addresses naira-dollar exchange rate
Legit.ng earlier reported that Ben Akabueze, the director-general of the federation's budget office, said the Naira would strengthen in value in the foreign exchange market in 2024.
Speaking in an interview with Channels TV on Tuesday, December 26, 2023, Akabueze said this would be possible as the country expects an increase in dollar supply.
He noted that the Tinubu-led government expects the reforms initiated in 2023 to start yielding results in 2024, which is why it maintains a positive stance on the exchange rate.
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Source: Legit.ng
