Again, CBN Hikes Import Duty Rate To N1,493.23/$1

Barely 24 hours after slashing the rate, the Central Bank of Nigeria (CBN) on Saturday morning raised the exchange rate for computing Customs duties at the nation’s seaports by 1.4 per cent.

LEADERSHIP checks reveal that the Customs duties rate is now benchmarked against the exchange rate of the Naira to the dollar and therefore would be subject to constant changes unless the federal government decides to peg it.

The Customs duty rate was reviewed upwards from N1, 472.756/$ to N1, 493.23/$ on Saturday, February 17, 2024, according to information on the official trade portal of the Nigeria Customs Service.

Today’s review by the apex bank represents a 1.4 percent increase in the Customs duty rate and an increase of N20.474 compared to the old exchange of N1, 472.756/$.

This development is in contrast with the House of Representatives directive that urged the apex bank to stabilise the rate by maintaining the exchange rate for Customs and excise duties at below N1, 000/$1.

The House also proposed for the Customs duty rate to be pegged at N951.941/$1.

They believed that reducing the rate would encourage patronage in Nigerian ports, prevent galloping inflation, and boost economic stability.

Meanwhile, raising the Customs duty exchange rate means importers will pay more to clear their goods as import duties are benchmarked against the dollar.

The new rate was reviewed upward in line with the official CBN foreign exchange rate that stands at N1,493.73/$ as of the morning of Saturday, February 15, 2024, which is in accordance with the announcement by the Customs management.

Comptroller general of the Nigeria Customs Service (NCS)Adewale Adeniyi had said early this year that the Service will use only the exchange rate on the official Central Bank’s window for clearing of imported goods and would not engage in arbitrary increase or decrease in the exchange rate.