CBN Slashes Import Duty Rate After Banning Foreign Currency Collateral for Naira Loan

• The customs exchange rate used to calculate import duty declined from N1,246.66/$ to N1,238/$1
• Analysts said that the changes are a reflection of the naira's strengthening in recent times due to CBN's intervention
• This is coming after the CBN recently announced that the use of foreign currency as collateral for naira loans has been banned

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

At the country's seaports, the customs exchange rate used to calculate import duty has decreased from N1,246.66/$ to N1,238/$1.

Even though the current customs exchange rate is less than the official market rate of the NGN to the USD, the decrease still amounts to a loss of N6.14 over the last two days.

On the official NAFEM window, the naira closed at N1,248.5/$ on Monday, April 8.

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This is coming after the CBN recently announced that the use of foreign currency as collateral for naira loans has been banned.

Dr Adetona Adedeji, the acting director of the CBN's Banking Supervision Department, stated this in a directive to Nigerian banks.

However, the CBN excluded any Eurobonds that the Federal Government of Nigeria issued or foreign bank guarantees, such as standby letters of credit, from the prohibition.

Financial analysts opined that the latest directive by the Central Bank of Nigeria (CBN) to lenders is expected to drive up dollar supply and give the naira a further boost, consequently improving the exchange rate adopted by the customs at the Nigerian ports.

The steadily declining Customs exchange rate over the last few weeks, according to experts, is a reflection of the naira's strengthening throughout that time.

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The influence of the CBN reforms since the year's commencement on the value of the naira in the foreign exchange market was also reflected in this.

Customs suspends sale of seized food items

Legit.ng reported that the Nigeria Customs Service (NCS) has suspended the sale of seized food items following the stampede that led to the loss of seven lives in Lagos, among the dead is Funmilayo Comfort Adebanjo, a member of the All Progressives Congress (APC).

The Customs' spokesperson, Abdullahi Maiwada, disclosed this in a statement via the NCS X handle (formerly known as Twitter) @CustomsNG on Monday, February 26.

Maiwada said the decision was due to a stampede that claimed lives at NCS Old Zonal Headquarters in the Yaba area of Lagos state on Friday, February 23.

Source: Legit.ng