New Customs Exchange Rate As Dollar Crashes Against Naira
- The cost of importing goods will drop again for businesses as the CBN adjusted the customs duty rate again
- The latest change follows the appreciation of the naira in the Nigerian Foreign Exchange Market (NFEM)
- Nigerian currency in the last days has put up a strong performance both in the official and unofficial markets
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 Central Bank of Nigeria (CBN) has reduced the customs duty rate, effectively making the cost of importing goods less expensive.
According to data from Nigeria's trade portal, on Sunday, June 22, the CBN slashed the exchange rate for clearing goods to N1,546.86 per dollar.
Source: Getty Images
The latest rate represents a 0.12% drop compared to the N1,548.85/$ exchange rate quoted last Sunday, June 15.
How customs exchange rate works
In a circular released in 2024, the CBN had directed that the Central Bank of Nigeria wishes to advise that the Nigeria Customs Service and other related parties adopt the closing FX rate on the date of opening Form M for the importation of goods as the FX rate to be used for import duty assessment.
The apex bank noted that the rate remains valid until the date of termination of the importation and clearance of goods by importers.
It added:
"This approach would enable the Nigeria Customs Service and importers to plan effectively and reduce uncertainties related to daily exchange rate fluctuations in determining their revenue or cost structures, respectively."
Why Customs exchange rate changes
The customs exchange rate for import duties dropped due to the performance of the naira in the official market.
The naira appreciated against the United States dollar at the Nigerian Foreign Exchange Market (NAFEM) on Friday, June 19.
During the trading session, the Nigerian currency gained N2.84 or 0.18% against the greenback, closing at N1,547.71/$1 compared to N1,550.55/$1 on Thursday.
Source: Getty Images
Similarly, the naira appreciated by N2.76 against the pound sterling, settling at N2,081.36/£1, up from the previous day’s rate of N2,084.12/£1.
It, however, traded flat against the Euro, ending the day at N1,799.35/€1.
As for the black market, BDC traders confirmed to Legit.ng that the naira also appreciated.
Abudulahhi, a BDC trader, said:
"The latest exchange rates were as follows: the US dollar traded between N1,590 and N1,600, the euro between N1,787 and N1,803, and the pound sterling between N2,130 and N2,150."
Shipping company announces new charges for Nigeria-bound cargo
Earlier, Legit.ng reported that Nigerian importers will now be required to pay additional charges on every 20-foot container cargo coming from five countries.
The shipping line has given reasons for the new charge and mentioned when it will take effect.
Other West African countries are affected by the directive, including Ghana and other of Nigeria's neighbours.
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Source: Legit.ng
