CBN Updates Customs Exchange Rate, Importers To Pay More To Clear Goods at Airports, Ports
- The CBN has again updated the dollar exchange rate for importers to clear goods at the ports and airports
- The new exchange rate is higher than the exchange rate of the naira in the foreign exchange market
- The customs exchange rate is now higher than the rate at which the dollar is sold in the Nigerian Autonomous Foreign Exchange Market
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 introduced a new exchange rate for calculating customs import duties at the nation’s ports and airports.
Customs duties are taxes and levies imposed on imported goods.
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The duties are paid through a commercial bank to the Nigeria Customs Service, which collects them on behalf of the federal government.
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Customs new exchange rate
According to data from Nigeria’s federal government trading portal, the CBN increased the duty rate to N1,584.23 per dollar on Thursday, July 18, 2024.
The new rate represents a 1.18% increase from the previous rate of N1,565.618 per dollar on Wednesday, July 17, 2024.
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 Thursday will be charged according to the updated rate.
Form M is a mandatory online documentation process for importing physical goods into Nigeria.
Customs rate now higher than official rate
Despite pleas from importers for the federal government to set a fixed exchange rate below N1,000, checks by Legit.ng show that the new Customs duty rate is now higher than the closing naira-to-dollar exchange rate in the official market.
The naira closed against the US dollar at N1,581.65 on Wednesday, July 17, 2024, in the official Nigerian Autonomous Foreign Exchange Market (NAFEM).
Reacting to the development, Joe Madu told Legit.ng that the new exchange rate will make importation even more expensive.
"The CBN increasing the duty rate above the official exchange rate is shocking. This will make an already bad situation worse. I have a client who deals in cars, and for over six months, I have not received a call from him."
Nigeria customs grounds bank’s aircraft
In related news, Legit.ng reported that the NCS had grounded a private jet belonging to a prominent Nigerian bank.
The move signals the commencement of a clampdown on private jet owners in Nigeria who may have imported them without paying import duties.
It was reported that the private jet owners owe about N1.9 billion in import duties.
Proofreading by James Ojo Adakole, journalist and copy editor at Legit.ng.
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Source: Legit.ng
