CBN Slashes Customs Dollar Exchange Rate To Clear Goods at Ports
- There is a new exchange rate for customs duty used by importers to clear goods at the nation's ports and airports
- The changes published on the government website showed businesses who apply for form M will pay less
- The CBN sets the customs duty rate and it is based on the performance of the naira in the official 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 slashed exchange rates used to calculate customs duties and tariffs for the Nigeria Customs Service (NCS)
According to data from Nigeria's trade portal, importers looking to clear goods will pay N1498.481 per dollar on Tuesday, March 4, 2025.
Source: Getty Images
The latest rate represents a 0.11% increase compared to the N1500.23/$ exchange rate quoted as of Monday, February 24.
Responding to the latest changes, licensed customs clearing agent Joe Madu told Legit.ng that the adjustments are no longer as significant as they were in the past.
He said:
"There has been relative stability in the customs rate over the past month, around N1,500."
"But it must be noted that businesses were paying less than N1,000 just a few months ago. So, the current rate is still high and continues to exert pressure."
Why did Customs' duty rate change?
The Central Bank of Nigeria (CBN) sets the customs duty rate using the closing rate of the naira against the dollar in the Nigerian Foreign Exchange Market (NFEM).
Data from CBN showed that the naira closed at N1,498.98 per dollar on Monday, February 3, 2025.
Customs adopt the closing FX rate on the date of opening Form M for the importation of goods, as the FX rate to be used for Import Duty Assessment.
This rate remains valid until the date of termination of the importation and clearance of goods by importers
Source: Getty Images
What is Form M?
Form M is a mandatory statutory document to be completed by all importers for the importation of goods into Nigeria.
The life span of a Form M is 180 days (for general merchandise) and 365 days (for plant and machinery), after which an extension of 180 days (for general merchandise) and 365 days (for plant and machinery) can be granted on the Form M by the Authorized Dealer.
It is therefore mandatory for all importers to complete and register Form 'M' with authorised dealers at the time of placing orders whether the transaction is valid for foreign exchange or not.
Expert seeks N1.000/$ fixed exchange rate
Earlier, Legit.ng reported that Muda Yusuf, the CEO of the Centre for the Promotion of Private Enterprise (CPPE), has urged the CBN to change its policy on the customs import duty rate to clear goods at ports.
Yusuf said that the CBN should review its policy and peg the exchange rate at N1,000/$ for the next six months to mitigate the adverse effects of exchange rate fluctuations on cargo clearance and trade costs.
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Source: Legit.ng
