Gains in Naira slashes Customs duty exchange rate by 3%, relieves importers

Nigerian importers are experiencing a welcomed respite as the nation’s currency, the naira, continues to gain strength in both official and parallel markets.

The Central Bank of Nigeria (CBN) has implemented further measures to support this trend by reducing the exchange rate used for computing Customs duties at the country’s seaports by 3 percent.

According to information sourced from the official trade portal of the Nigeria Customs Service, the Customs FX duty rate has been adjusted downward from N1,448.386 per dollar to N1,405.466 per dollar, effective as of Tuesday, March 26.

Data from March 25 indicates that the foreign exchange rate closed at N1,408.04 per dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), reflecting a strengthening of the naira in the official foreign exchange markets. The CBN has been supplying dollars to Bureau De Change operators at a rate of N1,251 per dollar, contributing to the appreciation of the naira.

This development comes as a relief to Nigerian importers who have been grappling with the challenges posed by fluctuating exchange rates and high Customs duties. The reduction in the Customs duty exchange rate is expected to alleviate some of the financial burdens faced by importers, potentially leading to increased trade activities at the nation’s seaports.

The slash in rate represents about 3 percent reduction when compared to the old rate of N1,448.386/$ used for opening of Form M as of Monday, March 26, and a decrease of N42.92 on a dollar needed to clear goods from the port.

With the slash in rate, importers opening Form M today Tuesday March 26 for importation will have some measures of relief in terms of the money required to pay import duties compared to the importer who opened Form M yesterday Monday, March 26.

This is in line with the apex bank’s new directive that Customs should be using the rate on the date of submitting Form M for calculating import duties.

Concerns have been raised by shippers in Nigeria over the delayed implementation of the Central Bank of Nigeria’s (CBN) directive regarding the use of the exchange rate specified on Form M for calculating import duties. Despite the directive from the CBN, the Nigerian Customs Service has yet to commence the implementation, causing frustration among stakeholders.

In a recent statement in Lagos, the President General of the National Shippers Association of Nigeria (NASAN), Innocent Akuvue, highlighted the ongoing