CBN Raises Customs FX Duty Rate for Cargo Clearance by over 12%

Confidence UbaniApril 29, 20241 Mins read683

Amid the depreciation of the Naira in the Nigerian Autonomous Foreign Exchange Market (NAFEM), the Central Bank of Nigeria (CBN) has raised the exchange rate for calculating tariff and import duties collection at the nation’s seaports and airports.

Information from the official trade portal of the Nigeria Customs Service (NCS) indicates that the CBN raised the Customs FX duty rate from N1,164.84/$ to N1,327.35/$ on Monday, April 29. This means over a 12% (N162.51) increase in the exchange rate for paying import duty.

This move by the CBN comes shortly after a reduction in the foreign exchange rate for calculating import duty, further impacting importers who now face additional financial burdens. Importers opening Form M today will require more funds to pay import duties than those who initiated the process over the weekend, as the new rate affects the cost of clearing goods at the port.

Going by data from the FMDQ Securities Exchange, the naira fell 7.8 per cent to N1,339.23 on Friday from N1,234.49 at the beginning of the week. NAFEM closed at N1,419.11 on Monday, however.

The depreciation of the Naira, as earlier reported, shows the economic challenges confronting Nigeria. Recently, Peter Obi, the Labour Party presidential candidate, called for stability in exchange rates to support businesses and alleviate financial strain. A circular from CBN instructing Customs to go by Form M rates surfaced a few days later.

Reacting to the situation, Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, emphasised prioritising growth and job creation over revenue generation to foster economic development.

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