CBN Raises Customs Duty Exchange Rate As Naira Depreciates Further Against US Dollar

• The Customs duty rate has been adjusted again following changes in the naira to dollar exchange rate
• Latest data from the CBN showed that the value of the naira improved against the US dollar in forex markets
• The improvement of the naira follows consecutive days of losses in the official and unofficial exchange markets

Legit.ng journalist Dave Ibemere has over a decade of business journalism experience with in-depth knowledge of the Nigerian economy, stocks, and general market trends.

The Central Bank of Nigeria (CBN) has adjusted exchange rates used to calculate customs duties and tariffs for the Nigeria Customs Service (NCS).

According to data from Nigeria's trade portal, importers looking to clear goods will pay N1,530.02 per dollar on Thursday, March 20, 2025.

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The latest rate represents a 0.82% increase compared to the N1,517.43/$ exchange rate quoted as of Monday, March 17.

Naira influences custom duty rate change

The Central Bank of Nigeria (CBN) sets the customs duty rate using the closing rate of the naira against the dollar in the Nigerian Foreign Exchange Market (NFEM).

Data from CBN showed that the naira depreciated on Wednesday, March 19 by a 0.74% or N11.40 against the US Dollar to close at N1,547.52/$1 compared with the previous day’s value of N1,536.12/$1.

Wednesday's rate is the third consecutive trading day the exchange rate of the Nigerian currency fell against the US dollar in the official market despite efforts of the Central Bank of Nigeria (CBN) to stabilise the ecosystem.

Customs 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 exchange rate remains valid until the date of termination of the importation and clearance of goods by importers.

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What is Form M?

Form M is a mandatory statutory document that importers must complete to declare their intention to import goods into Nigeria.

When submitting Form M, Nigerian importers should use the closing exchange rate on the date of Form M opening for calculating import duties.

It remains valid for 180 days for general merchandise and 365 days for plant and machinery. An extension of 180 days for general merchandise and 365 days for plant and machinery may be granted by the authorised dealer.

Importers are required to complete and register Form M with authorised dealers when placing orders, regardless of whether the transaction is eligible for foreign exchange.

FG considers ban on foreign vehicles

Earlier, Legit.ng reported that the Nigerian government is considering restricting foreign car imports to aid the local auto industry and boost job creation.

Minister of State for Industry stressed that Nigeria should focus on creating jobs within the country instead of helping to create jobs in other countries.

He emphasized the need for bold actions and clear timelines to drive industrial growth through the newly launched Industrial Revolution Work Group (IRWG).