CBN Sets New Customs Exchange Rate To Clear Goods As Dollar Crashes by 12% Against Naira

• The CBN has decided to slash the naira-to-dollar exchange rate for calculating Nigeria customs duty
• Customs has already begun implementation of the new rates, which will come as a big relief to businesses and importers
• The good news comes as the value of the naira appreciated in the official and unofficial markets during the week

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 slashed the Nigeria Customs Service exchange rate to calculate import duties at the nation's ports.

Customs duties are taxes and levies paid on goods imported into the country.

The duties are paid through a commercial bank to the Nigeria Customs Service, which receives on behalf of the Federal Government.

Read also

Airlines finally crash international airfares, stakeholders hail Air Peace for new price trigger

Customs new exchange rate

Data from the federal government trading portal showed that as of Saturday, March 23, 2024, importers will be charged N1,448.386 per dollar for import duty.

The new rate represents a 7.89% reduction from the previous rate of N1,572.507 per dollar.

The decision to slash the customs rate comes as the value of the Nigerian currency improved against the US dollar.

The naira during the week (Monday, 18th to Friday, 23rd, 2024) recorded impressive performances to end the week with a 12% gain.

The exchange rate closed at N1,431/$1 on Friday, March 22, 204, at the Nigerian Autonomous Foreign Exchange Market (NAFEM) segment of the currency market.

BusinessDay reports that on Thursday, March 21, some traders quoted N1,251/$, the lowest rate in 2024

Read also

N430/$: Foreign airlines reject CBN’s offer on FX payment, insist on payment using Emefiele's rate

Clearing Agent reacts

Speaking to Legit.ng on the new custom import duty, a licensed customs Agents, Kunle Afolabi said the new rate is nothing to celebrate.

"The exchange rate is still very high; the best rate will be N1,000/$ or lower. Honestly, I don't understand why the government is not listening to us. All over the world, countries are looking at reducing taxes to ease challenges of doing business.

"In Nigeria, the reverse is the case, bringing pain to the common man who will have to bear the consequences of high import costs, making many items unaffordable."

UK firms predict exciting exchange rate

Earlier, Legit.ng reported that two UK-based financial institutions have predicted a new exchange rate for the naira against the dollar.

Goldman Sachs and Standard Chartered believe the naira will rebound and close stronger in 2024.

Their predictions are based on the current reforms by the Cardoso-led CBN, which has helped the naira achieve an N1572.86/$ rate on Monday from above N1,600.

Source: Legit.ng