Nigeria Customs Explains 4x Adjustment in Exchange Rate for Importers Clearing Goods at Ports
- Nigeria Customs has offered clarification regarding the fluctuating exchange rate for import duties at ports
- The explanation details the adjustment of the exchange rate and the reasons behind the fluctuation
- Since the Central Bank of Nigeria (CBN) decided to float the Naira, NCS exchange rate has changed four times
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Legit.ng journalist Dave Ibemere has over a decade of experience covering business and the economy.
The Nigeria Customs Service (NCS) has explained that the fluctuations in import duty rates over the past few months are not the result of the service's actions.
Adewale Adeniyi, the comptroller general of the NCS, said this on Tuesday, January 16, 2023.
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Speaking on AriseTV, Adeniyi said the NCS does not fix rates without recourse to the merged foreign exchange window.
Legit.ng reports that the NCS has raised the exchange rate for clearing goods at the ports four times in the last five months.
This has elicited reactions from private-sector players who contend that the ongoing changes are impeding production and escalating operating costs for businesses in the country.
The exchange rate for import duty is N951.941 against a dollar from the previous N770.88/$ on November 14, 2023.
On June 24, 2023, the Nigeria customs adjusted the exchange rate from N422.30 to N589 per dollar.
Another adjustment was made on July 6, 2023, to N770.88 to a dollar.
Customs explains exchange rates
The NCS boss explained further that the changes align with the CBN's floating foreign exchange rate regime.
His words:
“The new administration of President Bola Tinubu has not made any pretention towards the fact that it is going to take a number of very bold decisions and reforms aimed at repositioning the Nigerian economy.
"One of the recent reforms implemented in the early days of the current administration involves the consolidation of the Forex market and its diverse segments. This restructuring has significant implications and impacts on our operational processes.
“What this means is that we cannot use exchange rates independently. We cannot use exchange rates that are not determined or specified through this merged forex windows."
Further clarifying their role, Adenyi added:
“So what we do is just to update our systems. It is not about Customs reducing or increasing the exchange rate. We have nothing to do with whether the exchange rate goes up or come down.
“It is not us, we follow what is proscribed for us by the regulatory authority for monetary affairs, which is the Central Bank of Nigeria.”
Nigeria Customs sets new exchange rate to clear imported goods
Earlier, Legit.ng reported that the NCS adjusted the foreign exchange rate for clearing imported goods at Nigerian ports.
The new rates were intended to reflect the depreciation of the Naira against the dollar across the foreign exchange markets.
With the new rate, the cost of imported goods will increase nationwide.
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Source: Legit.ng
