In a move influenced by the strengthening of the naira against the dollar at the official window, the Central Bank of Nigeria (CBN) announced a 7.3% reduction in the exchange rate used for computing Customs duties at the nation’s seaports.
According to information obtained from the National Trade Hub, the official trade portal of the Nigeria Customs Service, the Customs duty rate was revised from N1,605.82/$ to N1,488.896/$ on February 23, 2024. This adjustment marks a 7.3% decrease from the previous rate of N1,605.82/$ on February 22, 2024, resulting in a saving of N116.924 per dollar for importers.
This reduction represents the second adjustment in 2024, aimed at providing relief to importers grappling with fluctuating exchange rates. Importantly, the move is anticipated to alleviate the financial burden on importers and contribute to a more stable business environment.
Expressing the industry’s perspective, Taiwo Mustapha, an industry expert and licensed Customs agent, emphasized the adverse impact of a floating exchange rate on Customs duty payments within the port industry. Mustapha noted a significant reduction in cargo volume at the port, leading to operational challenges for Customs agents and importers.
He highlighted the potential threat to businesses within the port industry, emphasizing that continued instability in exchange rates could force many to go out of business. Mustapha pointed out the visible impact on auto dealerships, where the number of vehicles on display has seen a dramatic reduction due to challenges in importing at previous rates.
The CBN’s decision to adjust the Customs duty exchange rate is viewed as a strategic measure to address challenges faced by importers, Customs agents, and businesses operating within the port industry.
