CBN raises Customs duty exchange rate by 1.1%

By Sodiq Adelakun

The Central Bank of Nigeria (CBN) has once again increased the exchange rate for calculating Customs duties at the nation’s seaports.

The Customs duty rate was raised from N1,544.081/$ to N1,560.511/$ on Wednesday, March 6, 2024.

This represents a 1.1 percent increase in the Customs duty rate and an additional cost of N16.43 on each dollar required to clear goods at the port compared to the previous exchange rate.

Importers who are opening Form M will have to pay more to clear their goods as import duties are based on the dollar exchange rate.

Additionally, those opening Form M today will face a higher rate compared to those who opened it on Tuesday, March 5, due to the new directive from the CBN to Customs to use the rate on the date of submitting Form M for calculating import duties.

The exchange rate for clearing goods at the port has become a crucial policy with significant implications for international trade in Nigeria.

It was gathered that the exchange rate for clearing goods at the port has become a critical policy that has serious implications for international trade in the country.

Also, its stability impacts trade volume, prices, and investments and helps businesses to plan.

However, the present floating naira policy implemented by the apex bank since the economic reforms that started in June 2023, has resulted in further weakening of the naira and has also led to the fluctuation of the Customs duty rate.

Meanwhile, experts have condemned the act of allowing the Customs duty rate for cargo clearing to fluctuate due to its economic impact on businesses.