In response to multiple customs exchange rate adjustments, the Central Bank of Nigeria has directed the Nigerian Customs Service to utilize the foreign exchange closing rate on the ‘Form M’ submission date by importers for goods clearance and duty assessment.
This directive, announced in a statement by the CBN’s Director of Trade and Exchange Department, Hassan Mahmud, aims to address the pricing disruption caused by frequent customs duties rate changes, resulting in fluctuating final product costs in the market.
Effective February 26, 2024, the CBN advises Nigeria Customs to implement the updated guideline. The chosen FX rate on the Form M opening date will be used for duty assessment until the completion of goods clearance, replacing the prior requirement outlined in the Central Bank of Nigeria Foreign Exchange Manual (Revised Edition) 2018.
This move seeks to mitigate the impact of exchange rate fluctuations and website updates related to the foreign exchange market liberalization, fostering better planning for both Nigeria Customs and importers and reducing uncertainties stemming from varying exchange rates.
The recent escalation in cargo clearance exchange rates, with the most recent at N1,605 per US dollar, has contributed to the prevailing challenges in Nigeria’s pricing landscape. According to the National Bureau of Statistics’ consumer price index, January recorded a headline inflation rate of 29.90 per cent, reflecting the broader economic implications of these currency fluctuations on the cost of goods and services.
