In a significant move aimed at recalibrating import dynamics, the Central Bank of Nigeria (CBN) has announced a 5.3% reduction in the exchange rate used to calculate import duties.
The adjustment, revealed through the official trade portal of the Nigeria Customs Service, comes amidst a period of relative stability in the exchange rate between the Naira and the United States dollar.
As of yesterday, the rate for computing customs duties stood at N1,544.081 per dollar, marking a notable decrease of 5.3% compared to the previous rate of N1,630.159 per dollar utilized on Friday.
This translates to a reduction of N86.08 per dollar for importers when clearing their goods through the ports.
The decision reflects the CBN’s proactive stance in ensuring that import duties accurately mirror prevailing exchange rates. By lowering the rate, the CBN aims to alleviate the financial burden on companies engaged in importing goods.
The objective is to foster a more predictable and stable environment for international trade, thereby enhancing economic resilience and competitiveness.
In response to mounting concerns from importers regarding fluctuating import duty calculations, the CBN issued a circular on February 23, 2024.
The circular, acknowledging market volatility and price distortions arising from the liberalization of the foreign exchange market, seeks to address importers’ apprehensions regarding uncertainties stemming from fluctuating exchange rates impacting duty assessments.
