CBN Slashes Custom Rate for Nigerians to Clear Goods at Port

• The Central Bank of Nigeria has again adjusted the exchange rate for computing customs duties
• This means that importers will pay less compared to the amount of money initially required to pay import duties
• However, stakeholders want the CBN to focus on a more pressing problem of the high cost of clearing cargo

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 slashed the exchange rate for computing customs duties at the nation's seaports by 1.9%.

The customs' foreign exchange duty rate decreased 24 hours after the central bank hiked the rate by 10.4%.

According to data retrieved from the Nigeria Customs Service's official trade portal, on Thursday, February 29, 2024, the Customs FX duty rate was decreased, going from N1, 662.35/$ to N1630.159/$.

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Compared to the previous rate of N1, 662.35/$ used as of Wednesday, February 28, 2024, this represents a 1.9% reduction. It also represents a decrease of N32.191 on a dollar needed to clear goods from the port.

Due to the rate reduction, importers who open Form M for any import trade on Thursday, February 29, 2024, will see a slight decrease in the amount of money required to pay import duties compared to those who open Form M on Wednesday, February 28, 2024.

With the adjustment, the importer will put Form M at a lower exchange rate, utilising the rate on the submission date for calculating import duties.

Notwithstanding the cut, industry observers thought that the central bank should focus on the more serious and pressing problem of the prohibitively high cost of clearing cargo at the ports, which has increased by more than 40% in the past two months.

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According to Muda Yusuf, CEO of the Center for the Promotion of Private Enterprise, in a BusinessDay report, the high exchange rate for import duty assessment is exacerbating the already high level of inflation, driving up production and operating costs for manufacturers and other businesses.

In addition, it is heightening the cost of living crisis and endangering thousands of jobs in the maritime sector.

Expert speaks on new custom duty exchange rate.

Legit.ng reported that the CPPE has called on the CBN to peg the customs duty rate at N1000/$ to ease the current hardships in the country.

Chief executive officer of CPPE, Dr Muda Yusuf, made the call in a document available to Daily Sun on Sunday, February 25, 2024.

He stated that having a stable exchange rate for Customs duty will address more significant issues.

Source: Legit.ng