Import Costs Set To Fall As CBN Crashes Customs Exchange Rate
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- The customs duty rate is decreased to N1,421.23 per dollar by the CBN, reducing the cost of imports
- The adjustment reflects the naira's show of resilience in the official and parallel foreign exchange markets
- The Nigerian currency has gained against major currencies despite military action threat from Donald Trump
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
The cost of bringing goods into Nigeria is set to drop even more, as the Central Bank of Nigeria (CBN) has lowered the customs duty rate to N1,421.23 per dollar.
Source: Getty Images
This new rate marks a notable drop from the previous N1,487.396/$1 recorded on Tuesday, October 7, showcasing the naira's continued recovery in the foreign exchange market.
In a directive issued in 2024, the CBN instructed the Nigeria Customs Service and other relevant parties to use the closing foreign exchange rate on the day a Form M is opened for import transactions as the standard for calculating import duties.
The apex bank clarified that this rate would apply until the import process is completed and the goods are cleared by the importer.
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."
Naira gains ground in official market
The drop in the customs duty rate follows the naira appreciation against the US dollar at the Nigerian Foreign Exchange Market (NFEM) on Thursday, November 6, reversing losses recorded in the previous session.
Data from the CBN showed the Nigerian currency gained N1.75 or 0.12% to close at N1,436.74/$1, compared with N1,438.49/$1 on Wednesday.
Source: Getty Images
However, the naira slipped against the British pound, depreciating by N8.78 to trade at N1,882.56/£1, from N1,873.78/£1 the previous day.
Against the euro, naira strengthened, appreciating by N6.32 to N1,651.39/€1, compared to N1,657.71/€1 a day earlier.
At GTBank’s counter, the Nigerian currency traded at N1,446/$1, while in the parallel market it remained stable at N1,450/$1.
Why naira strong performance
The naira’s rebound comes as Nigeria’s $2.35 billion Eurobond issuance was oversubscribed by 477%, with investors responding positively to improving market signals, including easing interest rates, moderating inflation, and ongoing fiscal reforms.
Analysts expect the local currency to maintain its upward momentum, supported by the government’s $13 billion Eurobond program and sustained CBN interventions aimed at strengthening market liquidity.
Expert predicts new naira exchange rate
Earlier, Legit.ng reported that Bismark Rewane, CEO of Financial Derivatives Company Limited, has projected that the naira will close at N1,492/$ in 2025.
The positive outlook, he said, is driven by the domestication of corporate debt, diaspora inflows and remittances, and a likely Eurobond issuance.
He noted that these factors are expected to improve dollar supply and reduce pressure on the exchange rate.
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Source: Legit.ng
