Again, CBN reviews customs duty exchange rate

In a move that will impact importers nationwide, the Central Bank of Nigeria (CBN) has once again adjusted the exchange rate used for calculating Customs duties.

Effective from yesterday morning, February 14, 2024, the rate has been increased from N1,444.56 to N1,481.482 per US dollar, as confirmed by the Nigeria Customs Service’s official trade portal.

This latest revision marks the fifth increase this year and represents a 2.6 percent hike in the rate used to determine import duties, which are pegged to the US dollar.

Consequently, importers will face higher costs when clearing goods at Nigeria’s seaports, with the new rate reflecting an additional N36.922 per dollar over the previous rate.

The series of increases has heightened the sense of unpredictability within Nigeria’s business landscape, placing significant strain on importers who are struggling to forecast costs and manage their operations amidst the rapidly escalating exchange rates.

A Licensed Customs agent, Tony Anakebe, expressed the growing concern within the importing community, saying, “The level of uncertainty in Nigeria’s business environment is increasing by the day.”

“Importers are seriously under pressure and unable to plan in a situation where the exchange rate is increasing very rapidly.

“The situation has escalated to the point where Customs agents and freight forwarders are contemplating significant protests.

“The continuous uptick in exchange rates, if left unchecked, could lead to major disruptions in the sector as stakeholders seek to voice their concerns and push for a more stable and predictable business environment.

“The level of uncertainty in Nigeria’s business environment is increasing by the day. Importers are seriously under pressure and unable to plan in a situation where the exchange rate is increasing very rapidly,” he said.

He added Customs agents and freight forwarders are seriously considering major protests if the situation continues unabated.

On February 2, the CBN adjusted the exchange rate for calculating import duties from N951.941/$ to N1, 356.883/$; on February 3, it was raised to N1, 413.62/$; on February 10 it was raised to N1,417.635/$; on February 12, it was reviewed to N1, 444.56/$ and today February 14, the rate has been raised to N1, 481.482/$.

Eugene Nweke, a clearing and forwarding expert, said the apex bank policy of frequent exchange rate adjustment is contributing to economic hardship and poverty in the land.

He said many businesses are closing shops and many citizens are also losing their jobs because companies are downsizing due to the hardship and unfriendly business environment.