The Central Bank of Nigeria has once again adjusted the exchange rate for calculating Customs duties at the country’s seaports, this time by 1.9 per cent to N1.624.732 per US dollar. This move comes amidst the ongoing Naira crisis, with importers now facing increased costs to clear their goods as import duties are tied to the dollar.
Port users have expressed dissatisfaction with the new policy, which uses the exchange rate on Form M for import duty payment. They argue that this will only add more complexity to the trade process, leading to discrepancies in duties paid on similar imports and creating uncertainties in the pricing structure of goods and services across the country.
Emenike Nwokeoji, the National President of the Association of Nigerian Licensed Customs Agents, warned that this change could result in abnormal increases in the final sale prices of items, driven by uncertainties rather than market fundamentals. This, in turn, could have implications on inflation rates in the country.
The CBN has made several adjustments to the exchange rate for import duties in recent weeks, with rates increasing from N951.941 to N1,481.482 per US dollar. However, the apex bank has also advised the Nigeria Customs Service to consider the foreign exchange closing rate on the date of Form M submission by importers for the clearance of goods and import duty assessment.
As the Naira crisis continues to unfold, importers and port users are bracing themselves for further changes in the exchange rate and its impact on the cost of doing business in Nigeria’s seaports. Stay tuned for more updates on this developing story.
