Customs Adjusts Foreign Exchange Rate for Clearing to N783/$ Months After Naira Floating Policy

The information obtained from Customs’ official website revealed that in Nigeria Customs Service (NCS) has adjusted the exchange rate for cargo clearing at the port to N783.174/$ from N770.88/ The port industry is experiencing its second exchange rate adjustment, just five months after the Central Bank of Nigeria introduced the floating foreign exchange rate regime.

This change has significant implications for importers bringing goods through the country’s seaports, as they will now be required to pay higher import duty tariffs. This adjustment entails adding N12.294 to the total value for every dollar used in calculating import duty.

Tony Anakebe, a Licensed Customs Agent, expressed his reaction to this exchange rate adjustment by stating that importers and their clearing agents will automatically face increased import duty payments to the Customs. He found it surprising that it took five months for Customs to make this adjustment, given the volatile nature of the naira in the foreign exchange rate market.

Furthermore, this adjustment is expected to affect market prices for goods due to the higher Customs tariffs. Tony Anakebe also noted that this development would contribute to rising inflation since importers are likely to adjust their prices to cover these increased costs.

Bayo Tunde, another clearing agent, echoed these concerns, emphasizing that the high prices of goods in the market, along with the increasing costs of obtaining foreign exchange in the exchange market, are further burdens on both importers and consumers in Nigeria.

The impact of this adjustment has already been witnessed at the ports, with Bayo Tunde recounting his experience when clearing a container at one of the ports in Lagos.

A few months ago, the Central Bank of Nigeria instructed all government ministries, departments, and agencies, including the Nigeria Customs Service, to implement the floating naira policy.