Cost of Cars, Other Imported Items to Rise as Customs Announces New FX Rates For Duties Collections
- The Nigerian Customs Service has hiked the cost of Forex for duties’ collection for imported items at various ports
- The NCS announced that it hiked the Forex rates for duties payment from N757 per dollar to N783.17 per dollar
- It also imposed duties in Nigeria chargeable on imported goods, among other levies.
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The Nigeria Customs Service has modified its tariffs and duties to align with changes in the foreign exchange markets.
The move is coming a few days after the service announced changes in the exchange rates for goods’ clearance at various Nigerian ports.
Source: Getty Images
Customs adds N26.15 to the Cost of duties
The revised rates are now available on the Nigerian government’s single-window trade portal.
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The information on the trade portal says that the Customs exchange rate has increased by 3.43%, which is about N26.15, to reach N783.174 per dollar as of Sunday, November 12, 2023.
The development marks an increase from the previous rate of N757.023 per dollar recorded last week.
The service imposed duties in Nigeria chargeable on imported goods, among other levies.
According to reports, different items are subject to varying rates, ranging from 5% to 35%, and are determined based on the current harmonized commodity and coding system (HS code).
The naira appreciates against the dollar
The naira rebounded against the dollar on Friday, November 10, 2023, in the official NAFEM window to trade at N78014 per dollar, representing a 27.77% increase.
However, the naira fell by 3.54% in the parallel market at N1,130 per dollar, while the peer-to-peer window traded at about N1,100 per dollar.
The apex bank, the Central Bank of Nigeria (CBN), reversed the restriction on 43 items from accessing Forex at the official window.
Reversal of ban on 43 items causing scarcity of Forex
Analysts believe that lifting the restriction piled pressure on the forex markets, causing an upsurge in dollar demands.
The local currency has reportedly lost about 40% of its value since the CBN began the Forex reforms on June 14, 2023, with the World Bank naming the naira one of the worst-performing currencies in Africa.
Nigeria has battled acute Forex scarcity, culminating in about %10 billion backlogs in forward payments.
But a reprieve came as the Nigerian government released about $7 billion in early November to clear some of the backlogs. This resulted in the naira rebounding in the parallel market, where it crashed to N1,310 per dollar.
The backlogs eroded confidence in the Forex markets, with foreign investors needing help to pull their investments estimated at $7 billion.
Customs issues fresh orders to private jet owners in Nigeria
Legit.ng earlier reported claim by the NCS that about 30 private aircraft owners that underwent verification exercise were liable to pay the required duties.
During the exercise in Abuja, NCS's spokesman, Joseph Attah, said some of the aircraft for which the duties should be paid to the federal government were shipped into the country by the Temporary Importation Agreement (TIA), a bond that allows them to bring the jets without payment.
Source: Legit.ng
