Apprehension as Customs Duty Rates Rises Again, Hits N1,515/$1

By Adedapo Adesanya

The Central Bank of Nigeria (CBN) has yet again raised the exchange rate for the clearance of goods from N1,444.56/$ to N1515.09/$1, indicating an increase of N70.53 or 4.9 per cent.

According to the data on the federal government’s single-window trade portal of the Nigeria Customs Service (NCS), the former exchange rate of N1,444.56 to the Dollar has been adjusted upwards to N1515.09.

The customs imposes duties on imported cargoes before clearance from the ports. These charges range from 5 per cent to 35 per cent, depending on the harmonized commodity and coding system (HS code).

The CBN has regularly adjusted the exchange rate for goods clearance to reflect what is obtainable in the official window.

For instance, within the last two weeks, the apex bank adjusted the rate more than 40 per cent from N951.94/$ to N1,356.88/$.

With the latest increment, importation costs are billed to increase, while the price of goods and services in the market would soar astronomically, and will further compound worries about the rise in inflation which hit 29.90 per cent in January 2024.

Analysts say the frequent adjustments in the exchange rates for calculating customs duties will tell on businesses’ operating expenses with importers and manufacturers finding it extremely difficult to make plans because of the rate of uncertainty in the business climate and volatility in the forex market.

The need for strategic interventions to enhance liquidity and stabilise the exchange rate, highlighting the importance of collaborative initiatives between the government, regulatory bodies, and the private sector for sustained economic growth, have been offered as the solutions to fix Nigeria’s fiscal and monetary woes.