Phones, Cars, Other Imported Items To Get More Expensive As CBN Raises Customs Exchange Rate Again
- The Central Bank of Nigeria (CBN) has increased the customs exchange rate for clearing goods at ports
- The new exchange rate is now higher than N1,600 and a 1.14% increase from the previous exchange rate
- Customs duties are taxes and levies imposed on imported goods and are paid through commercial banks
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 increased the dollar exchange rate to calculate customs import duties.
Source: Getty Images
According to data from Nigeria’s federal government trading portal, the CBN updated the dollar rate for calculating customs duty rate to N1,618.73 per dollar as of Monday, August 5, 2024.
The new rate represents a 1.14% increase from the previous rate of N1600.36 per dollar on Friday, August 2, 2024.
The new rate reflects the performance of the naira at the Nigerian Autonomous Foreign Exchange Market (NAFEX).
Legit.ng reported that the naira rate closed trading on Friday last week at N1,617.08/$1 compared with the preceding day’s N1,5700.00/$1 as a nationwide protest against hunger continued into the second day.
How customs rate is calculated
Under the central bank’s new directive, Customs will calculate duties based on the exchange rate on the day Form M is submitted.
This adjustment means importers who open Form M on Monday will be charged according to the updated rate.
Form M is a mandatory online documentation process for importing physical goods into Nigeria.
Nigeria Customs clampdown on bank’s aircraft
In related news, Legit.ng reported that the Nigerian Customs Service (NCS) had grounded a private jet belonging to a prominent Nigerian bank.
The action marked the beginning of a crackdown on private jet owners in Nigeria who appeared to have imported their aircraft without paying import duties.
It was reported that the private jet owners owe about N1.9 billion in import duties. The crackdown commenced about two weeks after the Customs began a one-month verification exercise for private jet owners in Nigeria.
Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
