CBN Makes Changes To Customs Exchange Rate To Clear Goods At Ports As Naira Depreciates
- The CBN has made changes to the Customs exchange rate for cargo clearance at Nigeria’s ports and airports
- The new import duty is an increase from the previous rate as the naira depreciates against the dollar in the official market
- Nigerian currency suffered a loss of 0.62% or N9.51 in the official market and hit lower rates in the unofficial markets
Dave Ibemere, a journalist at Legit.ng, has been reporting on business for over ten years. He has deep knowledge of the Nigerian economy, stock market, and general market trends.
The Central Bank of Nigeria (CBN) has increased the Nigeria Customs Service (NCS) foreign exchange (FX) rate for import duties.
According to data from Nigeria's trade portal observed on Tuesday, March 11, the dollar exchange rate for import duty is N1,529.64.
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This represents a 1.17% increase compared to N1,511.8/$ displayed on Friday, March 7.
The development comes despite the naira improving in value against the US dollar in the official Nigerian Foreign Exchange Market (NFEM) the previous day.
Data from CBN showed that the naira suffered a loss of 0.62% or N9.51 against the US Dollar to quote at N1,532.29/$1 on Monday, March 10 compared with last Friday’s exchange rate of N1,522.78/$1.
The customs duty for cargo clearance is set by the CBN relative to the current exchange rates.
Insight on how importers bring goods to the country
The CBN had in February 2024, directed the Customs Service to adopt the same forex rate for the importation of goods to its clearance in the country.
In a circular released on its website, the CBN said the FX rate at the point of importation should be used for import duty assessment until the termination date and clearance are finalised.
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The directive, according to the circular, is aimed at curbing the disruptions caused by frequent updates on the customs website regarding forex market liberalisation.
The circular reads:
"Following the liberalisation of the foreign exchange market under the willing buyer-willing seller trading principle, the Central Bank of Nigeria has acknowledged importers' concerns over irregular changes in import duty assessments by the Nigeria Customs Service.
"These fluctuations have heightened uncertainties in pricing structures, leading to abnormal increases in the final cost of goods and services. Rather than being driven by traditional market fundamentals, these price hikes stem largely from uncertainty, with potential implications for near-term inflation trends.
“To this effect, the Central Bank of Nigeria wishes to advise that the Nigeria Custom Service and other related Parties adopt the closing FX rate on the date of opening Form M for the importation of goods, as the FX rate to be used for Import Duty Assessment.
"This rate remains. valid until the date of termination of the importation and clearance of goods by importers."
Nigeria records highest trade surplus in 17 years
In a previous report by Legit.ng the National Bureau of Statistics (NBS) announced that Nigeria recorded a total of N138.03 trillion worth of trade in 2024.
This represents a 106.55% increase compared to the N66.82 trillion reported in the same period of 2023.
Ten key trends that shaped Nigeria's trade with a focus on the 4th quarter of 2024 have been revealed.
Proofreading by Nkem Ikeke, copy editor at Legit.ng.
