CBN Hikes Customs Duty Rate Twice In 3 Days

The Central Bank of Nigeria (CBN) has increased the currency rate used to calculate customs taxes at the country’s seaports for the second time in three days.

Based on data gathered from the Nigeria Customs Service’s official trade site, the exchange rate was revised increased on Monday, February 12, moving from 1,417.635/$ to N1, 444.56/$.

The apex bank is raising the rate for the fourth time this year with today’s upward review, which translates into a 1.9 percent rise in the Customs duty rate.

Import tariffs are benchmarked to the dollar, which implies that importers and manufacturers that rely on the country’s seaport for the importation of essential production inputs would have to pay extra to clear their products.

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It also represents an increase of N26.925 and a percentage increase of 1.9 percent, below the official CBN exchange rate of N1,481.982/$ as of the morning of Monday, February 12, 2024.

Reacting to the development, Tony Anakebe, a Licensed Customs agent, told THE MATRIX that the rate at which the apex bank adjusts the exchange rate is becoming very rapid.

According to him, frequent adjustments in the exchange rates for calculating Customs duties are becoming unhealthy for businesses, and that explains why the port business has slowed in recent times.

“Importers and manufacturers are finding it extremely difficult to make plans because of the rate of uncertainty in the business climate and volatility in the forex market,” he said.