Customs FX Rate For Import Duties Rises Above Official Market Rate

Customs FX Rate for Import Duties has risen above the official market rate.

 

NewsOnline Nigeria reports that the current exchange rate for customs import duties and cargo clearance payment is higher than the official foreign exchange market rate of the Naira and the USD.  

 

Checks on the customs exchange rate portal reveal that the exchange rate for cargo clearance stood at N1,330.36/USD while the naira closed at N1,278/$1 on the official market yesterday and even much stronger on the parallel market at N1,250/$1.  

 

The exchange rate for customs import duties assessment had earlier been increased from N1,303.85/$1 to the current figure. This indicates an increase of N26.52 since the 31st of March 2024.  

 

SEE ALSO: CBN Naira Defence Projected To Cost Nigeria N1.01 Trillion From Q1 NTB Auctions

 

Strengthening of the Naira

Starting in mid-March, the Nigerian naira has appreciated against the U.S. dollar, reducing the foreign exchange (FX) rate used for assessing customs import duties. This rate decreased from a high of N1,612.28 on March 16 to its present value, marking a fall of N281.92 or 17.46% in just two weeks. 

Throughout March, the naira experienced a significant appreciation, gaining approximately 21.8%—the most substantial increase in five years. 

Recent reforms by the CBN

The recent rise in the naira’s value is largely due to the reforms by the central bank, including a notable interest rate increase of 600 basis points over two months. As a result, the Monetary Policy Rate (MPR) surged from 18.75% at the start of the year to 24.75% by March’s end. 

 

The central bank has been proactive in regulating the activities of Bureau De Change (BDC) operators to curb speculation, proposing increased share capital requirements of N2 billion for Tier-1 licenses and N500 million for Tier-2 licenses. 

 

Moreover, the bank has initiated the sale of foreign exchange to BDCs at a set rate, enforcing a maximum selling price, and has revoked the licenses of over 4,000 BDC operators nationwide in a significant regulatory crackdown.