The Central Bank of Nigeria (CBN) has announced a significant increase in the Nigeria Customs Service exchange rate for importation, raising it to N1,356.883 per US dollar from N951.842. This decision is expected to have far-reaching impacts on the country’s economy.
Maritime stakeholders were taken aback by the sudden increase in the exchange rate, which had previously been set at N951.842 per dollar as of December 2023. This change has already been implemented on the Trader Portal for Single Window Trade as confirmed by Barr Michael Ovien, a leading Customs Broker.
The ripple effects of this adjustment are likely to result in increased importation costs and a subsequent surge in the prices of goods and services in the market. Nigeria’s total trade in the third quarter of 2023 totaled N18.80 trillion, with exports valued at N10.35 trillion and total imports at N8.46 trillion. The new exchange rate is expected to result in higher costs for imported goods, impacting both businesses and consumers.
In addition to the customs exchange rate hike, the CBN has recently removed the previous cap on exchange rates quoted by International Money Transfer Operators (IMTOs). These policy interventions are aimed at stabilizing the country’s FX market and curbing foreign currency hoarding and speculation.
While these measures have positively influenced the Naira’s exchange rate against the US dollar, the forex market remains volatile, with the Naira quoting at N1461.90 per dollar at the close of the FMDQ market. These developments are likely to have widespread implications for businesses and consumers in Nigeria, with price increments looming on the horizon.
