CBN raises Customs FX duty rate to N1,624.732/$ as naira weakens

The Central Bank of Nigeria (CBN) has further increased the exchange rate for calculating Customs duties at the nation’s seaports by 1.9 percent.

The Customs exchange duty rate was raised from N1, 593.888/$ to N1, 624.732/$ on Tuesday, March 12, 2024, following the further depreciation in the value of naira, information obtained from the official trade portal of the Nigeria Customs Service, revealed.

With the apex bank’s upward review, the Customs duty rate has increased by 1.9 percent and it adds over N30 on each dollar needed to clear goods at the port compared to the old exchange of N1, 593.888/$.

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 Monday, March 11, 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.

Meanwhile, port users have rejected the policy of using the exchange rate on Form M for import duty payment because it will add more challenges to the trade process.

Emenike Nwokeoji, national president of the Association of Nigerian Licensed Customs Agents, said that using the Form M rate will create a discrepancy in duties paid on similar imports.

According to him, it would further create uncertainties around the pricing structure of goods and services in the country.

“It will also create abnormal increases in the final sale prices of items, which is largely driven by uncertainties, rather than market fundamentals, and will have implications on inflations,” he warned.