The Central Bank of Nigeria (CBN) has cut customs import duties and cargo clearance rates for the fifth time in less than two weeks. The customs FX duty rate has been revised downwards from N1,612 per dollar on 15th March to N1,405.46 per dollar. The Nigerian Naira (NGN) has been strengthening over the past few weeks, likely due to strategic measures and reforms implemented by the central bank aimed at curbing inflation and stabilizing the foreign exchange (FX) market. Over the past two weeks, the naira has strengthened from N1,615 per dollar on 13th March to N1,382 per dollar on 26th March.
The CBN has attributed this positive development to its successful settlement of a foreign exchange forwards backlog of over $4 billion, benefiting both domestic and international businesses. Additionally, the CBN has imposed restrictions on International Oil Companies (IOCs), allowing them to only transfer 50% of their foreign exchange earnings immediately and requiring them to wait 90 days before transferring the remaining 50%. The CBN has also prevented commercial banks from allocating foreign exchange sales profits towards operational costs and dividend payments.
Moreover, the CBN has recently begun selling dollars to Bureau de Change operators at a rate of N1,251 per dollar. These measures are likely to further strengthen the naira, and help maintain the stability of the foreign exchange market.
