Emmanuel OchayiThe Nigerian naira is flexing its muscle against the U.S. dollar, prompting revisions in customs import duty FX rates.
Yesterday, the customs exchange rate for cargo clearance peaked at N1,330.36 per USD, overshadowing the official market rate of N1,278 per USD and the parallel market’s stronger N1,250 per USD.
“This surge in the naira’s value is impacting our customs assessments,” states Customs Official, Mr. Adeolu. “It’s a notable shift, affecting how we evaluate duties.”
The recent appreciation of the naira against the dollar has been swift. Just two weeks ago, the FX rate used for customs duties was significantly higher at N1,612.28 per USD. The current value marks a substantial decrease of N281.92 or 17.46% in a short span.
“The naira’s strengthening has been remarkable,” comments Financial Analyst, Mrs. Olatunji. “It’s the most significant increase we’ve seen in five years.”
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This surge in the naira’s value is attributed to recent reforms initiated by the Central Bank of Nigeria (CBN). Over the past months, the CBN has implemented stringent measures, including a substantial 600 basis points increase in interest rates. The Monetary Policy Rate (MPR) rose from 18.75% at the beginning of the year to 24.75% by March’s end.
“We’ve taken decisive steps to stabilize the currency,” says CBN Governor, Mr. Olufemi. “These measures are aimed at restoring confidence and curbing speculation.”
The CBN has also intensified its oversight of Bureau De Change (BDC) operators. Stringent regulations include proposed increases in share capital requirements and the enforcement of maximum selling prices for foreign exchange. Additionally, over 4,000 BDC licenses have been revoked nationwide as part of a rigorous regulatory crackdown.
“These reforms are necessary to ensure stability in the FX market,” emphasizes Governor Olufemi. “We’re committed to fostering a conducive environment for economic growth.”
As the naira continues to assert its strength, stakeholders are closely monitoring its impact on various sectors, including customs duties and import-export businesses. With ongoing reforms and proactive measures by the CBN, the hope is to sustain this momentum and fortify the Nigerian currency against external pressures.
