No More N1,413/$: CBN Increases Official Exchange Rate for Customs to Clear Goods
- The Central Bank of Nigeria has again increased the exchange rate for calculating customs duties
- The new increment represents the third time the CBN has adjusted the rate in a week
- As a result of the upward review, Nigerians will pay more to clear their goods at the port
Legit.ng journalist Zainab Iwayemi has over three years of experience covering the Economy, Technology, and Capital Market.
The Central Bank of Nigeria (CBN) has, for the third time this year, increased the exchange rate for calculating customs duties at the nation's seaports.
Source: Getty Images
Information from the Nigeria Customs Service's official website indicates that on Friday, February 9, the exchange rate was reviewed upward to N1,413.62/$ from the earlier N1,417.635/$.
Legit.ng had earlier reported that the Central Bank of Nigeria (CBN) readjusted the official exchange rate on the Customs platform, the second review in less than 24 hours.
Data obtained from the federal government trading portal showed that from Monday, February 5, 2023, importers paid N1,413.62/$1.
Meanwhile, the new increment depicts N4.015 and a percentage increase of 0.28%. The amount is less compared to the official CBN exchange rate of N1,481.982/$ as of the morning of Saturday, February 10, 2024.
Because import tariffs are based on the dollar's value, the development means that Nigerians will pay more to clear their goods at the port due to the upward review.
The third review in a week
Leadership reported that this is the third upward assessment of the exchange rate in a week for the purpose of determining customs import duty, as well as the third review in 2024.
Additionally, in the eight months since President Tinubu's administration implemented the floating naira policy, this is the seventh time the apex bank has changed exchange rates.
On June 24, 2023, Customs adjusted the exchange rate from N422.30/$ to N589/$ and continued an upward review.
In a recent interview, Bisiriyu Lasisi Fanu, the former chairman of the Association of Nigeria Licensed Customs Agents at Seme Border, responded by stating that the excessive amount of overtime cargo at the port is due to the CBN's concerning currency rate adjustments.
Fanu said:
“CBN can’t change the rate and expect the importer who has made his calculation on what the landing cost and profit will be based on the previous exchange rate to survive.
“How do you expect the importer to generate the difference immediately to clear the goods from the port? It is not possible,” Fanu said.
“He said the hike in Customs duty through high FX rates will affect all goods in the market because every commodity in the market has imported input in them.”
Cost of cars, other imported items to rise
Legit.ng reported that 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.
The revised rates are now available on the Nigerian government's single-window trade portal.
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Source: Legit.ng
