CBN slashes Customs duty rate by 7.3% as naira strengthens

As the naira strengthens in the official foreign exchange window, the Central Bank of Nigeria (CBN) on Friday morning slashed the exchange rate for computing Customs duties at the nation’s seaports by 7.3 percent.

The Customs duty rate was reviewed downwards from N1, 605.82/$ to N1, 488.896/$ on Friday, February 23, 2024, according to the information on the official trade portal of the Nigeria Customs Service.

This represents a 7.3 percent drop when compared to the old rate of N1, 605.82/$ used as of Thursday, February 22, 2024, and a reduction of N116.924 less on a dollar.

BusinessDay findings show that it is the second time in 2024 that the Customs exchange rate is being adjusted on the downward trend, which is expected to bring some measure of relief to the importer who will save about N116.924/$ from the rate used on Thursday, February 22, 2024.

Meanwhile, Emenike Nwokeoji, national president of the Association of Nigeria Licensed Customs Agents (ANLCA), called on the apex bank to set the exchange rate for paying Customs duties for six months.

He said the fluctuation does not allow for businesses to plan and it is more frustrating for companies with bank financing.

Taiwo Mustapha, an industry expert and a licensed Customs agent, said the port industry cannot afford the exchange rate to be floating, especially when it has to do with Customs duty payment.

According to him, this has affected Customs Licensed agents and their importers such that the volume of cargo at the port has reduced drastically because people can no longer import at the rate they used to.

“If we continue like that, most of us will go out of business. Our staff are sitting idle at the offices and we are paying salaries because there is no job to be done. Take a look at the auto dealers on some of the streets, the number of vehicles on their stand has reduced dramatically,” he said.