CBN Slashes Customs Rate by 5.3% in Response to Naira Appreciation

In a move reflecting the dynamics of the foreign exchange market, the Nigerian Customs Service (NCS) has announced a 5.3% reduction in its foreign exchange (FX) rate for customs duties collection, now set at N1,544.081 per US dollar. This decision comes amidst the ongoing appreciation of the Naira at the forex market.

Recent data from DAILY POST indicates a notable decline in the customs exchange rate, dropping from N1,605 per USD in February to the current rate of N1,544.81 per USD. Further analysis by FMDQ on Monday revealed that the Naira’s value strengthened to N1,534.19 per USD, demonstrating a positive trend.

The Central Bank of Nigeria (CBN) had previously increased the country’s customs exchange rate on February 21, marking the sixth adjustment. However, the Centre for the Promotion of Private Enterprise (CPPE) has advocated for a fixed exchange rate of N1,000 per US dollar for import duty, aiming to address the escalating inflation rate, which reached 29.90% in January 2024.

In response to these developments, the CBN has issued guidelines directing the Nigeria Customs Service to adopt the foreign exchange closing rate on the date of ‘Form M’ submission by importers for the clearance of goods and import duty assessment.