Nigeria Customs Again Increases Dollar Exchange Rate To Clear Goods At Ports As Naira Crashes
- The Nigeria Customs Service has once again adjusted the foreign exchange rate for clearing imported goods at ports
- This is the second exchange rate change in March 2024, and it is coming less than 24 hours after a reduction
- The continued changes come despite pleas from Peter Obi, experts, and lawmakers to peg the customs rate at N1,000/$
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 readjusted the official exchange rate on the Customs platform, the second review in less than 24 hours.
Data from the federal government trading portal shows that as of Wednesday, March 6, 2024, importers will now pay N1560.511 per dollar for customs duty charges.
Source: Facebook
The latest change represents a 1.06% or 16.43 increase compared to the N1,544.081/$ exchange rate displayed on Tuesday, March 5, 204.
The new exchange rate comes as Nigerian currency crashed against the US Dollar in the Nigerian Autonomous Foreign Exchange Market (NAFEM) on Tuesday, March 5.
Data from FMDQ securities showed that Naira's value depreciated by 4.5 per cent or N68.24 to N1,602.43/$1 from the preceding day's rate of N1,534.19/$1.
Peter Obi addresses Customs exchange rate
Experts, economists, manufacturers, and clearing agents have consistently expressed concerns about the impact of ongoing changes in Customs exchange rates.
Peter Obi, former governor of Anambra state and presidential candidate of the Labour Party in the 2023 elections, has also weighed into the matter.
Legit.ng reported that Obi called on the federal government to halt the ongoing exchange rate changes for Customs cargo clearance.
He noted that the development is affecting the general business climate in the country and could lead to the death of many businesses.
Expressing his views via X, Obi, a businessman, stressed that high Customs revenues at the expense of the survival of local businesses, employment and reasonable cost of living were detrimental to the nation's economy.
His words:
“I wish to urgently call on the Federal Government of Nigeria to end the inconsistency in duty charges as it is affecting the general business atmosphere in the country.
"The federal government should stop the arbitrary and ever-increasing Customs duties as it is now negatively impacting businesses and the cost of items, and this portends a huge danger to the economy.
“A situation where at the point of initiating importation, Form M and other documents related to importation are based on a particular rate of exchange, for example, N1000 to $1, being the prevailing exchange rate at the time which the importer of goods was used to calculate the entire process, from the import initiation to receipt of goods in his warehouse.
“Then suddenly when the goods arrive in Nigeria, and duties are calculated at different rates, say N1400 to $1, it becomes a serious business challenge that results in business losses.
Expert wants N1,000/$ exchange rate
Also, the Centre for the Promotion of Private Enterprise wants the apex bank to peg the custom duty exchange rate at N1000/$.
The enterprise's CEO said having a stable exchange rate for Customs duty will address more significant issues in the industry.
He noted that the consequence of escalating trade costs is increased instances of abandoned cargo.
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Source: Legit.ng
