Nigeria’s Central Bank Raises Import Duty Exchange Rate Amid Currency Fluctuations
The Central Bank of Nigeria (CBN) has increased the import duty exchange rate to N1618.73, a hike of N18 from the previous rate of N1600.32 to the dollar. This decision comes amid ongoing foreign exchange fluctuations that have seen the Naira weaken by 6.43 percent in July despite CBN interventions.
According to the Nigeria trade hub, the federal government’s official single window for trade, the exchange rate increase is the highest since March 2024. The CBN has been selling foreign exchange (FX) to authorized dealers and Bureau de Change (BDC) operators to try and stabilize the Naira, but the currency continues to face significant pressure.
The new import duty exchange rate will have a direct impact on Nigeria’s trade and economy, as importers will now have to pay a higher rate to convert their foreign currency to Naira. The CBN’s decision has been met with criticism from some quarters, with the Director of the Centre for the Promotion of Private Enterprises, CPPE, Muda Yusuf having consistently urged that the country’s import duty exchange rate be pegged at N1000 per dollar to mitigate the effects of currency fluctuations.
As the Naira continues to fluctuate, businesses and individuals in Nigeria are likely to feel the pinch of this latest increase. The CBN’s decision will also have implications for Nigeria’s trade relationships with other countries, as importers may seek to negotiate lower prices or find alternative sources of goods and services. The development serves as a reminder of the ongoing challenges faced by Nigeria’s economy and the need for sustained efforts to stabilize the currency and promote economic growth.
