Import Duty Rises 48.49% As CBN Adjust Customs Exchange Rate Again

Nigerians are in for tougher times in the coming days as the Central Bank of Nigeria (CBN), has adjusted the Customs exchange rate twice in 24 hours.
LEADERSHIP reports that the CBN, on Saturday, readjusted the exchange rate on Customs platform from N1,356.883 to N1,413.62/$1, making it the second adjustment within 24 hours.
With this adjustment, import duty is expected to increase by 48.49 per cent.

With this increment, the price of goods imported into the country will increase by over 47 per cent, out of the each of the more Nigerians with rising inflation.
Recall that the CBN on June 24, 2023 adjusted the exchange rate from N422.30/$1 to N589/$1 and on July 6, 2023 it was adjusted to N770.88/$1, on November 14, 2023, it was adjusted to N783.174/$1, December 7, 2023, it was adjusted to N951.941/$1, on Friday, 2nd February, 2024, exchange at N1,356.883/$1 while it currently change at N1,413.62/$1.

However, Maritime experts, said that the increase in exchange rate means Nigerian importers will pay more to clear their goods at the port as import duty is benchmarked against the dollar.
With the recent increase, import duty on goods has now tripled within the seven months of the Bola Ahmed Tinubu government.
The new rate has since been reflected on the Customs trade portal, even though, it was vehemently opposed by importers and Customs brokers when the apex bank first increased Customs import duty rate by 43 per cent on Friday.
“We have enough problems with the exchange rate. Now we are having additional burden of import duty hike because it is like increasing import duty across board maybe by another 15 per cent or more that is what it is,” the chief executive officer, Centre for the Promotion of Private Enterprise (CPPE), Dr Muda Yusuf stated.
Yusuf, a former director general, Lagos Chamber of Commerce and Industry (LCCI), said the increase in exchange rate will further worsen the woes of importers.
He stressed that it will also lead to reduction in trade as cost of import will soar.
“The government through her policy is pushing more people into poverty. Nobody should blame Customs, it is the Government that should be blamed. With the rise in exchange rate, people will not import because the way you look at it, how do you get foreign exchange to import?” president, National Council of Managing Director of Licensed Customs Agents (NCMDLCA), Amiwero stated.
He continued, “I don’t know what government is doing about it because it is devastating. The ports are getting empty, people are not importing. People are not working and you cannot access your goods. If you go to the market now, price of goods are is double, petrol and diesel have become problem,” he lamented.
“Many people have lost their jobs, traders are closing shops. The situation is pathetic because we don’t have what it takes to sustain this suffering. Government should intervene before it result into crisis,” he stated.
“The federal government has increased the Dollar exchange rate, from N422.30 to N589.45 then to N770.88, in November, it was moved to N783.174, December 2023, we are at N951.941 to a dollar now, we N1,356.883/$1, this is too much,” Ikemefuna Chukwu, a frontline clearing agent stated.
He continued, “What it implies in simple terms is that, if clearing agents have a Debit Note that has not been paid on the system or Pre-Arrival Assessment Results (PAAR) or they have given you the value and you have not captured, it has affected you directly.”

He stated that lot of cargoes would be abandoned at the seaports because the differential was too wide for importers to bear.
“We just believe that maybe with time, we will see low exchange rate and it will become beneficial to the importers as well because once there is a change in the portal, there is nothing anybody can do about it. But if you have captured or access your work, you are good to go and your consignment would be released for you if you don’t have any infraction.”
“Whether you have collected your value, whether you have a PAAR, if you have not done your assessment as at now, you can’t capture with that old rate. Especially for the Roll On Roll Off (RORO) or those that are doing PAAR door to door. It’s a federal government policy. We stakeholders can’t do anything for now, but, it’s the prerogative of the FG to intervene and stabilise the foreign exchange market,” he stated.