In a move aimed at fostering economic stability, the Central Bank of Nigeria (CBN) has announced a further reduction in the Customs Foreign Exchange duty rate. The rate which took effect Monday March 4th 2024 has been revised downward from N1,630.159/$ to N1,544.081/$, marking a 5.3% decrease. This adjustment follows a period of exchange rate stability between the naira and the dollar.
Information sourced from the official trade portal of the Nigeria Customs Service reveals that the Customs Foreign Exchange duty rate was previously set at N1,630.159/$ as of March 2, 2024. The recent reduction represents a notable decrease of N86.078 on a dollar, easing the financial burden for importers clearing goods from the port.
The exchange rate had undergone various adjustments in recent weeks. It was initially raised from N951.941/$1 to N1,356.883/$1 on February 2. Subsequently, on February 3, it was further adjusted to N1,413.62/$ before another change on Saturday, reaching N1,417.635/$. The most recent modification on Monday set the rate at N1,444.56/$1.
Despite these adjustments, concerns have arisen over the impact on import activities at seaports and land borders. The fluctuating exchange rates have led to a challenging environment for importers, resulting in thousands of containers and vehicles being abandoned. Many owners are struggling to meet the substantial financial requirements for clearing their goods.
The CBN’s decision to reduce the Customs Foreign Exchange duty rate is seen as a step towards alleviating these challenges and fostering a more conducive environment for importers in Nigeria.
