CBN Slashes Customs Exchange Rate By 7.1%

The Central Bank of Nigeria (CBN), has adjusted the Customs exchange rate for clearance of cargoes at the nation’s seaports and airports from N1,238/$1 to N1,150/$1.

According to data on Nigeria’s trade hub, the exchange rate has been adjusted by 7.1% or N88 from its last rate of N1,238/$1 by the CBN.

The reduction of the Customs exchange rate is in response to the appreciation of the naira against the United States dollar in the official and parallel markets.

Also, the CBN had earlier stated in response to complaints over the frequent changes in the Customs’ FX rate that the exchange rate on the data of the Form M application will be used in calculating the duties collection.

The Nigeria Customs Service (NCS), in collaboration with the CBN, regularly adjusts the exchange rate to align with the official market rate on the NAFEM window, resulting in frequent changes in the rate.

However, clearing agents have called on the CBN to ensure that the exchange rate for cargo clearance is reduced to N600/$1, to boost port activities.

They argued that activities are yet to pick up at the port despite the depreciation of the United States dollar and appreciation of the naira in the last few months.

Speaking, a clearing agent operating at Tin-Can Island port, Akinola Oluwaseun, said sustaining the foreign exchange markets gain will make economic activities boom in the seaport.

According to him, there has been a significant drop in Customs duty payable on imported Cargo and vehicles.

He stated that the agent, however, targets the Exchange Rate for Customs Clearance to be between N500 or N600/$1 for activities to fully take off.

“The money payable for Customs’ exchange rate has dropped and that has made the duty payment drop. We hope the exchange rate can drop to N600/$1. Foreign exchange, especially the dollar has started dropping in the foreign exchange markets as well as in the clearance of cargoes at the seaport. We hope that by next week, FX will come down more and activities will pick up,” Akinola stated.