“No More N783/$:” Again, Nigeria Customs Announces New Exchange Rate For Cargo Clearance
- The Nigeria Customs Service has adjusted its exchange rate for cargo clearance from Nigerian ports
- The move is the second time in a month the agency is embarking on exchange rate clearance
- The new adjustment is a 22.8% increase at N952 per dollar from the previous N783.17
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The Nigeria Customs Service (NCS) has announced the adjustment of its exchange rate for cargo clearance from N783 per dollar to N952 per dollar, representing a 22.8% rise.
Checks on the Nigerian government’s single window trade portal of the services show that the former exchange rate of N783.17 per dollar has been revised upward to N951.95 per dollar.
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Customs hike exchange rates for the second time in a month
This is the second time in the last month that the federal government agency adjusted its cargo clearance exchange rate.
Legit.ng reported that the agency announced an adjustment in November from the previous rate of N770.88 per dollar to N783.17 before the latest adjustment.
Reports say the Nigeria Customs Service imposes duties before cargoes are cleared from the ports, ranging from 5% to 35% as specified by the harmonized commodity coding system (HS codes).
The agency generates revenues from these charges and other tariffs.
It collects about N202 billion monthly from these tariffs and levies.
The current adjustment by the NCS is due to the deprecation of the naira, which traded at N921.22 to the dollar on the official Autonomous Foreign Exchange Market (NAFEM) on Wednesday, November 6, 2023.
The new development by Customs will see a hike in the price of imported products such as cars and food items, among others.
Importers lament new exchange rate
In an interview, Jame Orji, a Tin Can Island Port clearing agent, told Legit.ng that the new exchange rate means that importers and others along the value chain will struggle to bring in products at affordable costs.
“What we are seeing is a systematic disemboweling of the import business. Already, importers were struggling to meet up with previous FX rates before new announcements,” he said.
According to him, the new rate will affect living standards and other living costs nationwide.
“Nigeria is an import-dependent economy, which will affect people’s livelihoods.”
CBN’s naira devaluation drives up the cost of vehicle duties as customs fix their own exchange rates
Legit. ng reported that the ongoing foreign exchange rate reforms by the Central Bank of Nigeria have hit the maritime sector with a 40% increase in the exchange rate used in calculating import duty.
The Nigeria Customs on Saturday, June 24, 2023, increased the exchange rate used for import duty from N422.30 to a dollar to N589 to a dollar.
The development led to a 40% increase in import duty on imported cargo, including vehicles, Punch report said.
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Source: Legit.ng
