CBN Reduces Customs Exchange Rate to N1,238/$1, Reflecting Naira’s Strength

The Customs exchange rate utilized for calculating import duty at Nigerian seaports has been adjusted from N1,246.66/$ to N1,238/$1. This reduction of N6.14 within two days places the current customs exchange rate below the official market rate of the Naira to the US Dollar, which closed at N1,248.5/$ on the official NAFEM window on Monday.

Financial analysts suggest that the consistent decline in the Customs exchange rate over the past weeks signifies the Naira’s strengthening trend during this period. This trend is believed to be influenced by the ongoing reforms initiated by the Central Bank of Nigeria (CBN) since the beginning of the year, aimed at stabilizing the Naira’s value in the forex market.

As a result of this adjustment, importers who initiated Form M processes on Wednesday will benefit from reduced costs in clearing their cargoes, as import duties are calculated based on the dollar exchange rate. Furthermore, the CBN’s new directive instructing Customs to use the exchange rate on the date of Form M submission for duty calculations means that importers who filed on Monday, April 8th, 2024, will have a lower rate compared to those who submitted on Wednesday, April 10th, 2024.