CBN Slashes Customs FX Duty Rate To Clear Goods As Naira Gains Against US Dollar

• The Central Bank of Nigeria has again adjusted the naira-to-dollar exchange rate for calculating customs duty
• The Nigeria Customs Service has also announced the new rates, which are a slight relief to businesses and importers
• Nigerians will be hoping the downward adjustment continues to bring down the cost of foreign goods

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Nigeria Customs Service has revealed a new exchange rate for calculating import duties at the nation's seaports.

Data obtained from the federal government trading portal showed that as of Tuesday, March 19, 2024, importers will be charged N1,572.50 per dollar for import duty.

The new rate represents a 1.31% reduction from the previous rate of N1,593.41 per dollar.

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The decision to slash the customs rate comes as the value of Nigerian currency improved against the US dollar.

Data from FMDQ securities shows that the naira appreciated by 0.3% or N5.41 to close at N1,597.34/$1 against the US dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM) segment of the currency market on Monday, March 18, 2024.

How customs exchange rate is calculated

In an earlier report, Adewale Adeniyi, the comptroller general of the NCS, explained that the fluctuations in import duty rates over the past few months are not the result of the service's actions.

He noted that the NCS does not fix rates and that the changes align with the CBN's floating foreign exchange rate regime.

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His words:

"What we do is just to update our systems. It is not about Customs reducing or increasing the exchange rate. We have nothing to do with whether the exchange rate goes up or come down.

“It is not us, we follow what is proscribed for us by the regulatory authority for monetary affairs, which is the Central Bank of Nigeria.”

Customs adjusts exchange rates again

Earlier, Legit.ng reported that importers of used cars across Nigeria had adjusted their prices following the volatile exchange rates in the country and the incessant adjustments of FX for cargo clearance by the Nigeria Customs Service (NCS).

Since February 2024, the NCS adjusted exchange rates more than six times, with some happening within 24 hours.

Importers said the adjustments caused fluctuations in the prices of imported vehicles and made imports uncertain as they were unsure of the next move by the Customs.

Source: Legit.ng