Nigeria Customs Announces New Dollar Exchange Rate To Clear Goods at Ports, Airports

• The Nigerian customs will charge Nigerian importers higher fees to clear their goods at the airports and also ports
• The changes reflect the depreciation of the Nigerian currency in the official foreign exchange markets
• The Central Bank of Nigeria sets the Customs exchange rate based on the closing rate at the NAFEM window

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 once again raised the exchange rates for cargo clearance at the nation's seaports and airports.

According to information on the official trade portal of the Nigerian Customs Service (NCS), the CBN increased the Customs dollar rate to N1,524.37 on Monday, July 9, 2024.

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New exchange rates as naira reverses gain, crashes in official, black markets as FX reserves rise

The new rate represents a slight increase of 0.80%, or N12.16, compared to N1,512.21 on Sunday, July 8, 2024.

How customs determine the exchange rate

In a recent report, Abdullahi Maiwada, the Nigerian Customs Service (NCS) spokesperson, clarified that the CBN, not market forces, determines the exchange rates for import duty collection.

He pointed out that importers conduct their transactions in dollars, necessitating the acquisition of "Form M" from the CBN.

Maiwada also explained that the NCS collects duty on imported items using the prevailing exchange rate for calculations, while exporters use the Nigerian Export Proceed (NXP) form to repatriate their earnings.

Naira to dollar exchange rate

The increase in the customs exchange rate reflects the naira's performance in the official market.

FMDQ securities data shows that in the Nigerian Autonomous Foreign Exchange Market (NAFEM), which is also the official market, Nigerian currency depreciated against the US dollar to N1,523.85/$ Monday, July 9, 2024.

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Naira crashes at CBN official market, traders sell US dollar at new exchange rate

CBN hopes to crash dollar

Earlier, Legit.ng reported that the CBN carried out another round of forex sales to licensed Bureau De Change Operators in the country.

Each BDC received $10,000 as the CBN bid to reduce the exchange rate at which the dollar is sold on the street.

The Central Bank of Nigeria also instructed that the BDCs sell at a maximum of N1,269/$1 to achieve its objective.

Source: Legit.ng