The exchange rate for calculating import duties at Nigeria’s seaports has strengthened to N1,150 per dollar, surpassing the official exchange rate.
This enhancement follows a notable reduction of about 7.1 per cent by the Central Bank of Nigeria (CBN), bringing the Customs FX duty rate down to N1,150.16 per dollar.
The adjustment, as revealed by the official trade portal of the Nigeria Customs Service, marks a significant decrease from the previous rate of N1,238.179 per dollar.
Importers opening Form M on Tuesday benefited from this lower rate, experiencing a reduction of N88.019 per dollar in the amount required to clear goods at the port compared to the previous week.
The strengthening of the exchange rate coincides with the appreciation of the naira in the foreign exchange (FX) market, where it traded at N1,234.49 per dollar on the Nigerian Autonomous Foreign Exchange Market (NAFEM) on April 22.
Moreover, street exchange rates saw a decrease, with one dollar sold for N1,250, reflecting an improvement from N1,270 the previous day.
This positive trend in the naira’s value has been attributed to the CBN’s sale of $10,000 to Bureau de Change operators at a rate of N1,021 per dollar.
Importers and freight forwarders welcomed the reduced Customs FX duty rate, expressing optimism that it would continue to decline in the coming weeks.
The CBN’s directive to use the exchange rate on the date of submitting Form M for calculating import duties aligns with efforts to provide relief to importers and enhance the competitiveness of Nigeria’s trade sector.
With the exchange rate stabilizing, stakeholders anticipate further improvements that will benefit the importation and clearance of goods at the nation’s ports.
Recall that the CBN announced a three per cent reduction in the exchange rate in March.
The reduction at the time was due to the CBN’s directive that Customs should use the rate on the date of submitting Form M for import duties calculation.
Despite the CBN’s directive, shippers raised concerns regarding the delay in Customs implementing the new exchange rate policy.
