Customs Forex Duty Rate Drops Again By 3% As Naira Strengthens Further

The Nigeria Customs exchange rate for calculating import duty at the nation’s ports has decreased further by 3 per cent on the back of continuous appreciation of the naira in the foreign exchange market.

According to data obtained from the official trade portal of the Nigerian Customs Service on Wednesday, 27 March 2024, the rate for cargo clearance dropped to N1,405/$1. This reflects a N43 or 3 per cent decrease from N1,448/$1 on 23 March 2024.

Since the foreign exchange reforms introduced by the CBN in June 2023 which led to the floating of the naira in the forex market, making the value of the local currency fluctuate, the apex bank has continued to adjust the Exchange rate for payment of Customs duties at the nation’s ports by importers in line with the official exchange rate. From $422.30/$ in June 2023, the rate rose to N952/$ in December 2023 and further jumped to N1,605.82/$ by 21 February 2024. Checks by Prime Business Africa also revealed that the rate was also jerked up to N1,624.732/$1 on 12 March.

However, the rate began to drop as the value of the naira appreciated in both official and parallel exchange windows of the forex market. From N1,624 on 12 March, it dropped to N1,593/$1 on 16 March, then further dropped to N1,572/$1 on 19 March, and  N1,448/$1 on 23 March.

READ ALSO: Customs Exchange Rate For Import Duty Drops To N1593/$

From a high of about N1,800 recorded in February, the exchange rate has dropped to N1,400 at the parallel market and N1,382/$1 at the official market as of Tuesday, 26 March 2024.

The CBN had last month directed that the rate for clearance of cargoes be pegged on the latest official exchange rate at the point of submitting Form M by importers.

The drop means that importers will open Form M at a lower rate compared to those who opened Form M earlier last week.

 

READ ALSO: CBN Raises Customs Duty Rates By 59.1% In 2 Months Amid Naira Depreciation