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CBN slashes Customs FX duty rate by 1.3% as naira firms up

No more foreign currency collateral for naira loans — CBN

The Central Bank of Nigeria (CBN) has again reduced the Customs exchange rate for computing import duty at the port by 1.3 percent.

The Customs FX duty rate was reviewed downward from N1, 593.41/$ to N1,572.507/$ on Tuesday, March 19, according to information obtained from the official trade portal of the Nigeria Customs Service.

This represents a 1.3 percent reduction when compared to the old rate of N1, 593.41/$ used as of Monday, March 19, and a decrease of N20.903 on a dollar needed to clear goods from the port.

With the slash, importers opening Form M today Tuesday, March 19, for importation, will have a little relief in terms of the money that would be used to pay import duties at the arrival of the cargo compared to the importer who opened Form M last Friday.

This is in line with the apex bank’s new directive to Customs to use the exchange rate on the date of submitting Form M for calculating import duties.

Industry experts say the further slash in Customs FX duty rate can be attributed to the stability of the naira in the foreign exchange market.

BusinessDay reports that the official and parallel-market exchange rates for the naira have converged in recent days as capital inflows surged, giving credence to a forecast by Goldman Sachs Group that the naira will strengthen over the coming months.

Data obtained from NAFEX showed that the naira opened at N1,597.34/$ and closed at N1,572.86/$ as of March 18, compared to N1,602.75 on Friday, March 15.