Good News: CBN Slashes Nigeria Customs Import Duty Exchange Rate for First Time in 8 Months

• Nigeria Customs Service announced a drop in the exchange rate used for calculating import duties
• This is the first decrease in 8 months, and the CBN has reduced the exchange rate since adopting the free float rate
• Nigerians will be hoping that the decrease in the exchange rate could be the beginning of lower prices for imported goods

Legit.ng journalist Dave Ibemere has over a decade of experience covering Tech, Energy, Stocks, Investments, and the Economy.

The Central Bank of Nigeria has reduced the exchange rate used by the Nigeria Customs Service (NCS) to calculate import duty when clearing goods at the nation's seaports.

This is the first time since June 2023 that the dollar exchange rate has decreased, offering potential relief to businesses and consumers.

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What is import duty?

Import duty, also known as Customs duty, is a tax collected by customs authorities on behalf of the federal government from importers while clearing goods at the seaport.

The value of the imported goods usually determines the amount to be paid, calculated in foreign currency.

Nigeria Customs new FX import duty rate

According to data from the federal government trading portal, importers will be charged N1,472.756/$ when paying for import duty starting Friday, February 16, 2024.

This represents an N42.33 or 2.79% increase from the previous rate of N1,515.092 a dollar.

Customs exchange rates changes timeline in 2024

Since June 2023, the CBN has consistently raised Nigeria Customs import duty rate, starting from N422.30/$ and reaching as high as N1515.092/$.

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Here is a breakdown of the changes so far in 2024.

• On February 2, the CBN adjusted the exchange rate for calculating import duties from N951.941/$ to N1, 356.883/$.
• On February 3, it was raised to N1, 413.62/$.
• On February 10, it was raised to N1,417.635/$.
• On February 12, it was reviewed to N1, 444.56/$.
• On February 14, the rate was raised to N1, 481.482/$.
• February 15, it increased to N1515.092/$.
• The current rate is N1,472.756/$

CBN governor plans next move for Naira

Earlier, Legit.ng reported that the CBN is set to introduce a singular foreign currency (FCY) gateway bank.

The apex bank said the move would centralise all correspondent banking activities and facilitate international trade and economic activities.

The CBN also announced a plan to streamline the number of BDC operators in Nigeria, improve the nation's forex inflows and stabilise the Naira.

Source: Legit.ng