Amid Outcry, Customs Hikes Import Duties FX Rate To N1,441/$1, Higher Than Official Rate

For the second time in May 2024, the Nigeria Customs Service (NCS) has adjusted the foreign exchange (FX) rate for import duties, this time, to N1,441/$1.

This represents a 4.94 percent increase compared to the N1,373.64/$ adopted on May 1.

The rate adopted by customs was observed on Friday on the federal government’s single window trade portal.

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Information gathered by The Matrix shows that the NCS rate is higher than the official closing rate ₦1400.40/$1 which the naira traded on the official Nigerian Autonomous Foreign Exchange Market window on May 3, 2024.

The customs typically adopts FX rates recommended by the Central Bank of Nigeria (CBN) for import duties based on trading activities in the official FX market.

According to CBN on February 23, the customs and other related parties must adopt the closing rate in the official window for import duty.

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The apex bank said the FX rate at the point of importation should be used for import duty assessment until the termination date and clearance are finalised.

This yoyo movement in the Customs duty import rate has become a subject of keen discourse. Earlier on May 1, 2024, Muda Yusuf, Chief Executive Officer (CEO) of the Centre for the Promotion of Private Enterprise (CPPE), said such volatility in the exchange rate is detrimental to the economy.

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He said the economy’s real sector activities such as planning, production, and other activities are negatively impacted by the frequent changes.