Exchange Rate for Cargo Clearance Soars to N1,605/$ Amidst Deepening Economic Crisis

In a bid to navigate the ongoing economic challenges, the Central Bank of Nigeria (CBN) has once again revised the exchange rate for cargo clearance, setting it at N1,605/$. This marks the tenth adjustment since President Bola Tinubu assumed office in May 2023.

The series of increments commenced in June 2023, escalating from N422.30 per dollar to N589 per dollar. Subsequently, the apex bank continued to raise the exchange rate, reaching N770.88 per $1 in July.

The adjustments persisted, with the rate climbing from N770.88/$1 to N783.174/$1 on November 14, 2023. In December, another spike propelled it to N951.941/$1, followed by subsequent increases, culminating in the current rate of N1,605/$1 as of February 2, 2024.

The impact of these frequent hikes has prompted concerns from various quarters. Emenike Nwokeoji, the National President of the Association of Nigerian Licensed Customs Agents, expressed apprehension about the implications on the masses. He highlighted the inaccessibility of essential medicines like inhalers, which are now beyond the reach of common Nigerians due to skyrocketing market prices.

In response to the escalating situation, the House of Representatives has called on the CBN to maintain the exchange rate for Customs and Excise duty below N1,000/$1. They emphasize the importance of encouraging patronage in Nigerian ports to prevent inflation from spiraling out of control and to stabilize the economy. The house suggests a preference for pegging the exchange rate at N951.941/$1 for Customs and Excise duty.

Additionally, the Federal Ministry of Finance is urged to adhere to international best practices by allowing a 90-day grace period for fiscal policy changes. This move aims to facilitate the completion of ongoing transactions under existing policies and mitigate the potential disruptions caused by abrupt adjustments.