The challenges for Nigerian importers have intensified as the Central Bank of Nigeria (CBN) made yet another adjustment to the Customs exchange rate on Wednesday. The rate was increased from N1444.56/$1 to N1,481.482/$1, marking the 5th adjustment in just 12 days and the 9th since President Bola Tinubu’s administration began in May 2023.
The recent adjustment saw a significant upward shift of N36.922, equivalent to 2.56%, exacerbating the financial burden on importers. Maritime experts argue that this increase will lead to higher costs for clearing goods at the ports, as import duties are typically benchmarked against the dollar.
The relentless series of exchange rate adjustments by the CBN has left importers grappling with uncertainty and financial strain. This latest move adds to the woes of businesses already navigating a challenging economic landscape.
To provide context, the CBN had previously adjusted the exchange rate on various occasions, including June 24, 2023, when it shifted from N422.30/$ to N589/$. Subsequent adjustments occurred on July 6, 2023 (N770.88/$), November 14, 2023 (N783.174/$), December (N951.941/$), February 2 (N1,356.883/$), February 3 (N1,413.62/$), February 10 (N1,417.635/$), and February 11 (N1,444.56/$1).
The frequent adjustments have prompted concerns among economic observers, who question the impact on inflation, business operations, and overall economic stability. Importers are anxiously monitoring the situation, hoping for a more predictable and favorable exchange rate regime to mitigate the challenges they face.
As the exchange rate continues to fluctuate, stakeholders are calling for comprehensive measures to stabilize the currency and create an environment conducive to sustainable economic growth. The evolving situation underscores the importance of effective economic policies to address the concerns of businesses and foster a more resilient economic landscape.
