CBN Raises Customs FX Rate For Import Duties By 19.43% In 1 Week As Naira Depreciates

Customs Duties Clearance FX Rate Adjusted Twice Within 4 Days

4 weeks ago
1 min read

The Nigeria Customs Service (NCS) has once again revised the exchange (FX)rate for customs duties clearance, marking the second adjustment in less than four days.

Today’s alteration sees the rate for duties collection set at N1150/$, signaling a notable shift from the previous rate of N1238/$.

These frequent changes in the exchange rate have sparked concerns among traders and importers, who have expressed frustration over the lack of stability in the system. One importer, who preferred to remain anonymous, voiced their dissatisfaction, saying, “It’s becoming increasingly challenging to plan and budget for imports when the exchange rate keeps fluctuating unpredictably.”

The decision to modify the exchange rate comes amidst ongoing efforts by the Nigeria Customs Service, in collaboration with the Central Bank of Nigeria (CBN), to synchronize the customs duties rate with the official market rate on the NAFEM window. This partnership aims to maintain consistency and alignment with broader economic policies.

Responding to criticisms regarding the frequent adjustments, the CBN reiterated its commitment to utilizing the exchange rate stated on the Form M application for calculating duties collection. This move seeks to provide clarity and transparency in the customs clearance process, ensuring that importers are aware of the applicable rates beforehand.

READ ALSO: Fluctuation In FX Rate Will Persist But We’re Working Towards Stability, Says Cardoso

In the broader context of the FX market, recent weeks have witnessed notable movements in the value of the naira. Official market figures indicate that the naira closed at N1,169.99/$ last week, reflecting a steady performance. However, on the parallel market, the currency experienced a 15% weekly decline, reaching N1,050/$ by the end of the week.

The volatility in the FX market has been influenced by various factors, including reforms implemented by the Central Bank of Nigeria (CBN) aimed at stabilizing the currency. These measures include selling USD to Bureau De Changes (BDCs) at a fixed rate of N1101/$ and implementing cash pooling arrangements for International Oil Companies (IOCs) to regulate foreign exchange repatriation.

During the recent World Bank/IMF spring meeting, CBN Governor Yemi Cardoso referenced a report by Goldman Sachs, highlighting the naira’s status as the best performing currency globally. Cardoso emphasized the strategic shift undertaken by the central bank, moving away from reactive measures towards proactive planning across key economic sectors.

As stakeholders monitor the evolving dynamics of the FX market, there remains a keen interest in the sustainability of these reforms and their impact on economic stability. Importers and traders continue to adapt to the fluctuating exchange rates, navigating challenges while seeking opportunities for growth amidst the shifting landscape.


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