Customs Exchange Rate For Import Duty Rises By 2.04% In 4 Days

Nigeria Customs Exchange rate for calculating duties has increased by 2.04 per cent in four days. From N1,447.97/$1 on Monday, 10th June, it increased to N1477.65 as of Friday, 14th June 2024.

The rate is nearing a two-week high of N1,480/$1.

Prime Business Africa had reported at the beginning of the month that the Customs duty collection rate rose to N1,482.9/$1. However, it later dropped to N1,474.42 /$1 on 5th June and subsequently decreased to N1,447.97/$1.

The frequent adjustment of the rate for Customs duty collection, is due to fluctuation of the value of the naira in the foreign exchange market, as the Nigeria Customs Service (NCS) use the official market rate to determine the rate in accordance with the Central Bank of Nigeria (CBN) directive.

The exchange rate has been fairly unstable this week. On Monday, 10th June, the naira trading at the official market closed at N1,483.62 per dollar. On Tuesday, 11th June, it slightly appreciated by o.67 per cent to N1,473.66 against the US dollar. As of Thursday, 13th June, the official exchange rate stands at N1,476.24/$1 according to the Nigeria Autonomous Foreign Exchange Market (NAFEM) data published on the FMDQ securities and exchange platform. This means the Customs duty rate is slightly above the official foreign exchange rate.

Importers, economic experts and other stakeholders have continued to express concern about the impact of the irregular adjustment of the Customs duty rate on businesses that depend on importation and the economy generally.

Experts have advised that Customs should adopt a fixed rate that would last for a period.

The Presidential Committee on Fiscal Policy and Tax Reforms had last month, recommended an exchange rate of N800 per dollar Customs import duty rate for the rest of this year.

READ ALSO: Nigeria Customs Scaring Away Importers From Ports With High Duties – T-PACI President 

Chairman of the committee, Taiwo Oyedele, who made the recommendation said the frequent changes in the import duty rate adopted by the Nigeria Customs Service (NCS) due to the volatility of the foreign exchange market do not allow for adequate planning by businesses.

However, NCS is yet to implement the recommendation as it continues with its revenue generation drive.