The Central Bank of Nigeria (CBN) has once again adjusted the exchange rate for computing Customs duties at the nation’s seaports and airports, reducing it by 1.5% from N1,617.96/$1 to N1,593.41/$1. This move, observed for the second time in seven days, follows the recent strengthening of the naira against the dollar at the official window.
As indicated by data on the Federal Government Single Window for Trade, the current exchange rate for cargo clearance at seaports stands at N1,593.41/$1, marking a decrease from the previous rate of N1,617.96/$1. This adjustment results in a reduction of N24.55 in the Customs exchange rate, benefiting importers who will now pay less to clear their cargoes.
Furthermore, the CBN’s new directive instructs Customs to utilize the exchange rate on the date of Form M submission for calculating import duties. This means that importers who open Form M today will enjoy a lower rate compared to those who did so on Monday, March 18, 2024.
In response to the ongoing challenges faced by businesses and citizens, the Centre for the Promotion of Private Enterprise (CPPE) previously urged the CBN to fix the customs duty exchange rate at N1,000 per dollar for the remainder of the year. Dr. Muda Yusuf, CEO of CPPE, commended the CBN’s decision to align the exchange rate with import documentation, stating that it would reduce uncertainty surrounding imports and related transactions.
However, Dr. Yusuf highlighted the need to address the broader issue of high cargo clearance costs at ports, emphasizing that the current exchange rate for import duty assessment contributes to inflation, increased production costs, and job insecurity. He urged the CBN to consider pegging the customs duty exchange rate at N1,000 per dollar to alleviate economic hardships, enhance competitiveness, and stimulate growth.
In light of ongoing macroeconomic challenges, Yusuf emphasized that adjusting the customs duty exchange rate aligns with intervention measures aimed at mitigating economic hardships without detracting from the government’s reform agenda. This proposal, if implemented, could positively impact competitiveness, productivity, and employment generation, contributing to economic recovery and stability.
