The Central Bank of Nigeria (CBN) has announced a further decrease in the exchange rate used to calculate import duties at seaports.
This reduction comes after a period of relative stability in the exchange rate between the Naira and US Dollar.
As of Monday, March 4, the new rate for calculating customs duties is N1,544.081 per US Dollar. This represents a 5.3% decrease compared to the previous rate of N1,630.159 per US Dollar used on Friday, March 2. In simpler terms, importers will now pay N86.078 less per dollar when clearing their goods through the ports.
This change reflects the CBN’s ongoing efforts to ensure that customs duties accurately reflect the prevailing exchange rate. By adjusting the rate downward, the CBN aims to ease the pressure on businesses importing goods into Nigeria. The expectation is that this will lead to a more predictable and stable environment for international trade.
On February 23, the CBN issued a circular in response to concerns from importers regarding fluctuating import duty assessments by the Nigeria Customs Service.
Key points from the CBN circular include acknowledging market volatility and price distortions due to the liberalization of the foreign exchange market, addressing importers’ concerns about uncertainties caused by fluctuating exchange rates affecting duty calculations, and advising the Nigeria Customs Service to use the closing FX rate on the date of opening Form M for imports as the fixed rate for duty assessment. This fixed rate will remain valid until the completion of import and clearance of goods.
These measures, along with the reduced customs duty rate and clarified import duty assessment process, aim to bring stability and transparency to the import environment. This is expected to benefit businesses, consumers, and the overall Nigerian economy.
Importers and businesses involved in international trade should keep themselves updated with the latest information from the CBN to accurately calculate duties and avoid potential delays or issues when clearing goods through customs.