The Central Bank of Nigeria (CBN) has for the fourth time in 2024 slashed the exchange rate for computing Customs duties at the nation’s seaports from N1630.159/$ to N1, 544.081/$.
According to information obtained from the official trade portal of the Nigeria Customs Service (NCS), this represents a 5.3 per cent reduction and a decrease of N86.078 needed to clear goods at the seaports.
This is the fourth time the CBN would slash the Customs duty exchange rate.
On February 16 the apex bank slashed the Customs duty exchange rate from N1,515/$ to N1,472.756/$; on February 23, it also slashed it from N1, 605.82/$ to N1, 488.896/$, while on February 29, it was reduced from N1, 662.35/$ to N1630.159/$ and now March 4, it was reduced from N1630.159/$ to N1, 544.081/$.
The Centre for Promotion of Private Enterprise (CPPE) reiterated its stand on fixing Customs duty exchange rate to 1,000/$ for the rest of the year in the interest of citizens and businesses.
The Chief Executive Officer, CPPE, Dr. Muda Yusuf, said the government and the fiscal authorities in conjunction with the CBN should agree to fix the rate at 1,000/$ as things are extremely difficult.
“We cannot afford all those volatility, people cannot plan, inspite of what the CBN said that importers will have to use the date on the Form M, that has still not addressed the problem because the cost of cargo clearance is still extremely very high. We are seeking for government’s intervention to fix the duty rate at 1,000/$ for the rest of the year,” he stated.
Muda, however, noted that the business community would not be surprised to see an increase in the rate the next day, stressing that this is not how to run an economy.
Recall that the CBN, after a slash in the exchange rate of customs duty, increases it thereafter.
After the slash in the exchange rate on February 16 to N1,472.756/$, the rate went up again on February 21 to N1605.82/$. Also, the February 23 reduction of N1, 488.896/$ saw an increase of N1, 662.35/$, but the February 29 reduction of N1630.159/$ was maintained and later reduced to N1, 544.081/$ on March 4.
