Again, CBN Increases Customs Exchange Rate To Clear Imported Goods

• The CBN has again made adjustments in the Customs duty rate for clearing goods at the port and also airport
• The new rates reflect the continued depreciation of the naira in both the official and unofficial markets
• Experts continue to ask the Nigerian government to peg the Customs exchange rate at N1,000/$ to bring down inflation

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 decided to increase the Nigeria Customs duty exchange rate to clear goods at ports to N1,655.92 a dollar on Wednesday, October 23.

The new rate represents a 0.97% increase from the previous rate of N1,639.928 per dollar on Monday, October 21, 2024

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Customs duty, also known as import duty, refers to the 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.

Naira exchange rate

The new Customs duty exchange rate reflects the current performance of the naira in the official Nigerian Autonomous Foreign Exchange Market (NAFEM).

According to FMDQ securities exchange securities, the naira fell to N1,653.02/$1 exchange rate in the NAFEM window on Tuesday, October 22, 2024.

Tuesday's exchange rate is 3.1% or N49.86 depreciation compared to Monday's closing exchange rate of N1,603.16/$1.

In the parallel market, the value of the naira weakened further on Wednesday against the US Dollar by N5 to quote at N1,725/$1 compared with the preceding session’s N1,720/$1.

Muda Yusuf wants N1,000/$ exchange rate

Earlier, Legit.ng reported that the Centre for the Promotion of Private Enterprise (CPPE) called on the CBN to peg the Customs duty rate to N1000/$ to ease the current hardships in the country.

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Chief executive officer of CPPE, Dr Muda Yusuf, who made the call, said a significant policy adjustment was necessary to complement current measures to address the country's ongoing cost-of-living crisis.

The renowned economist emphasised that adopting a lower exchange rate would help stabilise the price of goods in the market.

Proofreading by James, Ojo Adakole, journalist and copy editor at Legit.ng.

Source: Legit.ng