CBN again increases Customs FX duty rate by 1.9%

Twenty-four hours after raising the exchange rate for Customs duty, the Central Bank of Nigeria (CBN) has again increased the FX rate for calculating Customs duties at the nation’s seaports by 1.9 percent.

Information obtained from the official trade portal of the Nigeria Customs Service revealed that the Customs duty rate was reviewed upwards from N1, 560.511/$ to N1, 590.669/$ on Thursday, March 7, 2024.

The apex bank review represents a 1.9 percent increase in the FX rate for Customs duty and an additional N30.158 on each dollar needed to clear goods at the port compared to the old exchange of N1, 590.669/$.

This means that importers opening Form M today will pay more to clear their goods as import duties are benchmarked against the dollar.

Also, importers will open Form M at a higher rate compared to those who opened Form M on Wednesday, March 6, according to the apex bank’s new directive to Customs to use the rate on the date of submitting Form M for calculating import duties.

BusinessDay reports that the continued depreciation of the naira against the dollar has seen Customs duties paid on imported goods increased by about 93 percent since the Federal Government FX reform in June 2023.

This means importers and manufacturers are now using more money to clear their goods at the port resulting in additional costs that add up to the prices of the finished products on the shelf.