The Central Bank of Nigeria (CBN) has announced a 2.8% reduction in the exchange rate for computing customs duties following multiple upward adjustments earlier in 2024. The new rate, revealed on the official trade portal of the Nigeria Customs Service, has been lowered from N1,515.092 to N1,472.756 per US dollar.
This move comes in response to calls from various quarters for a more favorable rate. The House of Representatives urged the CBN to stabilize the customs duty rate at N951.941 per US dollar to avert a potential economic crisis, while the Centre for the Promotion of Private Enterprise advocated for pegging the import duty exchange rate at 1,000 per US dollar to mitigate the soaring prices of goods.
Notably, the CBN had increased the exchange rate for import duties at least five times within the last six weeks. Starting from February 2, the rate saw a series of upward revisions, reaching N1,481.482 per US dollar by February 14, reflecting the ongoing volatility of the Naira in the country’s foreign exchange market. On Friday, the Naira traded at N1,537.96 per US dollar.
This latest adjustment by the CBN aims to strike a balance between revenue generation from import duties and the need to prevent undue inflationary pressure on the economy. This development will likely impact various sectors of the Nigerian economy and could offer some relief to businesses and consumers grappling with the impact of fluctuating exchange rates.
