The Central Bank of Nigeria (CBN) has further reduced the exchange rate used to compute Customs duties at the nation’s seaports, from N1,448.386/$ to N1,405.466/$. The new rate represents a three percent decrease from the previous rate and a N42.92 decrease in the cost of importing goods from the port.
This change is in accordance with a CBN directive instructing the Nigeria Customs Service (NCS) to use the rate at the time of submission of Form M, rather than an arbitrary rate, to calculate import duties.
Despite this directive, shippers have raised concerns over the Customs’ failure to implement the policy. Innocent Akuvue, president general of the National Shippers Association of Nigeria (NASAN), stated that the Customs is still using a different exchange rate than the one on Form M to calculate import duties. He noted that the lack of implementation of the directive was negatively impacting the cost of doing business at the port. Additionally, he noted that the volatility of the exchange rate used to calculate Customs duties was contributing to rising commodity prices in Nigeria.
Akuvue stressed the need for the CBN and the NCS to take steps … to ensure that the directive is implemented in order to improve the ease of doing business and reduce the cost of imported goods. He also urged the CBN to review its foreign exchange policy to allow for more flexibility in order to reflect market realities and encourage foreign investment in Nigeria.
