CBN slashes Customs duty rate by 2.8% after Reps’ directive

The Central Bank of Nigeria (CBN) on Friday slashed the exchange rate for computing Customs duties at the nation’s seaports by 2.8 percent.

Information on the official trade portal of the Nigeria Customs Service on Friday revealed that the rate was reviewed downwards from N1, 515.092/$ to N1, 472.756/$ on Friday, February 16, 2024.

Nigeria’s apex bank slashed the Customs duty rate 24hous after the House of Representatives directed it to stabilise the rate by maintaining the exchange rate for Customs and excise duties at below N1, 000/$1.

The House proposed for the Customs duty rate to be pegged at N951.941/$1.

According to the House, slashing the Customs exchange duty rate will encourage patronage in Nigerian ports, prevent galloping inflation, and boost economic stability.

Leke Abejide, a member of the House said there is a need to rescue the Nigerian economy from imminent collapse and restore investor confidence in the system.

BusinessDay findings show that it is the first 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 N42.336/$ from the rate used on Thursday, February 15, 2024.

Also, it was not only the Customs duty rate that appreciated against the dollar as the official CBN foreign exchange rate also appreciated by N23.47 against the dollar and closed the week at N1, 493.73/$ compared to N1, 517.20/$, the dollar was sold as of Thursday, February 15, 2024.