Customs FX duty rate records 1.2% decline as naira strengthens

The foreign exchange rate for computing import duties by the Nigeria Customs Service has recorded a further decline following the appreciation and stability of the naira at the official FX market.

The exchange rate was further slashed by the Central Bank of Nigeria (CBN) by 1.2 percent on Monday, March 18 compared to the old rate.

The Customs FX duty rate was reviewed downward from N1, 612.281/$ to N1, 593.41/$, according to information obtained from the official trade portal of Nigeria Customs.

This represents a 1.2 percent reduction when compared to the old rate of N1, 612.281/$ used as of Friday, March 15, and a decrease of N18.871 on a dollar needed to clear goods from the port.

Data from the FMDQ’s Nigerian Autonomous Foreign Exchange Rate Fixing (NAFEX) shows the naira exchange rate against the dollar opened at N1,602.43/$ and closed at N1,602.75/$ on March 15.

BusinessDay reports that the FX market ended last week on a positive note as the naira appreciated against the dollar across official and parallel markets.

Last week, the naira gained 0.95 percent as the dollar was quoted at N1,602.75 on Friday, March 15, stronger than N1,617.96 quoted earlier on Monday, March 11, the beginning of the trading week, at the official FX market, according to the data compiled from the FMDQ Securities Exchange.

BusinessDay further predicted that the naira is expected to stabilise further this week, following moderation in demand pressure, amid the dollar supply decline.

With the slash, importers opening Form M today Monday, March 18, 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 importers who opened Form M last Friday.

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