CBN Reduces Import Duty Rate By 7.3%

The Central Bank of Nigeria (CBN), on Friday, slashed the exchange rate for computing Customs duties at the nation’s seaports by 7.3 per cent.

The slash, analysts argued, was as a result of the naira that strengthened against the dollar at the official window on Thursday.

LEADERSHIP gathered that the Customs duty rate was reviewed downwards from N1, 605.82/$ to N1, 488.896/$ on Friday, February 23, 2024, according to information on the National Trade Hub, the official trade portal of the Nigeria Customs Service.

This represents a 7.3 per cent drop when compared to the old rate of N1, 605.82/$ used as of Thursday, February 22, 2024, and a reduction of N116.924 less on a dollar.

The reduction is the second time in 2024 that the Customs exchange rate is being adjusted on the downward trend, which is expected to bring some measure of relief to the importer who will save about N116.924/$ from the rate used on Thursday, February 22, 2024.

Meanwhile, an industry expert and a licensed Customs agent, Taiwo Mustapha, said, the port industry cannot afford the exchange rate to be floating, especially, when it has to do with Customs duty payment.

According to him, this has affected Customs Licensed agents and their importers such that the volume of cargo at the port has reduced drastically because people can no longer import at the rate they used to.

“If we continue like that, most of us will go out of business. Our staff are sitting idle at the offices and we are paying salaries because there is no job to be done. Take a look at the auto dealers on some of the streets, the number of vehicles on their stand has reduced dramatically,” he said.