The Central Bank of Nigeria (CBN) has again raised the exchange rate for calculating Customs import duties rate at the nation’s seaports.
Information obtained by The Matrix from the official trade portal of the Nigeria Customs Service (NCS) shows that the exchange rate was reviewed upward yesterday, February 12, from N1,417.63/$ to N1,444.56/$1.
For the use of the British pound, the exchange rate was pegged at N1,824.19/£1 while the exchange rate was pegged at N1556.08/€1 for the Euro.
This year alone, the CBN has adjusted the import duty exchange rate four times in quick succession.
The exchange rate was moved from N951.941/$1 to N1, 356.883/$1 on February 2, 2024, and was again reviewed upward on February 3 to N1, 413.62/$1. Last Saturday, the rate was changed again to N1,417.63/$1 before it was raised on Monday to N1,444.56/$1.
On June 24, 2023, the CBN adjusted the exchange rate from N422.30/$1 to N589/$1, and on July 6, 2023, it was adjusted to N770.88/$1. On November 14, 2023, it was adjusted to N783.174/$1, in December 2023.
Earlier, Dr Muda Yusuf, Chief Executive Officer of Centre for the Promotion of Private Enterprise had cautioned that incessant increase in import duty rate would inflict more pain on the citizens, erode profit margins, reduce purchasing power, and put the survival of businesses at an elevated risk.
Yusuf noted that the frequent changes in rates are also creating serious issues of uncertainty for investors and making the international trade process increasingly unpredictable.
“This is not a good time for the CBN to increase the exchange rate for the computation of import duty and the clearing of cargo by importers.
This review will impact the cost of all imports, including raw materials for manufacturers, pharmaceutical products, machinery, energy products, petroleum products, and many more.
This will make a bad situation worse for investors in the economy. It will worsen the misery of the citizens amid an excruciating inflationary condition” he had cautioned.
