The Central Bank of Nigeria (CBN) has increased the exchange rate for calculating Customs duties at the nation’s seaports by 1.1 percent, following a period of relative stability.
The Customs duty rate was adjusted upwards from N1,544.081/$ to N1,560.511/$ on Wednesday, March 6, 2024, as indicated on the official trade portal of the Nigeria Customs Service.
This adjustment represents a 1.1 percent rise in the Customs duty rate, resulting in an additional N16.43 on each dollar required to clear goods at the port compared to the previous rate.
Importers opening Form on this day will incur higher costs to clear their goods, as import duties are pegged against the dollar.
Furthermore, the new directive from the apex bank requires importers opening Form M on this day to do so at the revised rate, unlike those who opened Form M on Tuesday, March 5.
READ ALSO: Senate Approves Murtala Sagagi, 3 Other Nominees As CBN Directors
The exchange rate for clearing goods at the port has become a critical policy with significant implications for international trade in Nigeria, impacting trade volume, prices, and investments, and aiding businesses in planning.
The current floating naira policy, initiated by the CBN since the economic reforms that began in June 2023, has contributed to the further weakening of the naira and the fluctuation of the Customs duty rate.
Experts have criticized the practice of allowing the Customs duty rate for cargo clearing to fluctuate, citing its adverse economic effects on businesses.