Again, CBN Raises Customs Duty Rate To N1, 560.511/$

After a few days of calm, the Central Bank of Nigeria (CBN) increased the exchange rate by 1.1 percent once again to be used in determining customs taxes at the country’s seaports.

On Wednesday, March 6, 2024, the Customs duty rate was revised increased, from N1, 544.081/$ to N1, 560.511/$, according to information on the Nigeria Customs Service’s official trade portal.

In comparison to the previous exchange rate of N1, 544.081/$, the latest evaluation by the apex bank indicates a 1.1 percent rise in the Customs tax rate and an increase of N16.43 on each dollar needed to clear goods at the port. With the hike in the Customs duty exchange rate, importers opening Form M today will pay more to clear their goods as import duties are benchmarked against the dollar.

Also, importers opening Form M today will do so at a higher rate compared to those who opened Form M on Tuesday, March 5, according to the apex bank’s new directive to Customs to use the rate on the date of submitting Form M for calculating import duties.

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THE MATRIX reports that the exchange rate for clearing goods at the port has become a critical policy that has serious implications for international trade in the country.

Also, its stability impacts trade volume, prices, and investments and helps businesses to plan.

However, the present floating naira policy implemented by the apex bank since the economic reforms that started in June 2023, has resulted in further weakening of the naira and has also led to the fluctuation of the Customs duty rate.

Meanwhile, experts have condemned the act of allowing the Customs duty rate for cargo clearing to fluctuate due to its economic impact on businesses.