CBN reduces Customs FX duty rate by 5.3% as naira stabilises

The Central Bank of Nigeria, CBN, has reduced the exchange rate for computing the country’s customs charges by 5.3 percent following the naira’s stability against the dollar.

According to the Nigeria Customs Service’s official trade portal, the tariff rate has been reduced from N1630.159/$ to N1,544.081/$.

This represents a 5.3% decrease from the previous rate of N1630.159/$ as of Friday, March 2, 2024. It is also claimed that this will decrease the economic impact of paying a high tariff on items carried into the country.

Reacting, Tony Anakebe, an industry analyst, said the CBN needs to stabilise the FX rate for Customs duty evaluation to reduce the economic impact of paying a high tariff on businesses.

According to him, there is a lull at the port as importers are no longer finding the business environment favourable due to high import duty and fluctuating FX rates for duty calculation.

Platinumpost reports that the apex bank last week, issued a new directive to Customs to use the rate on the date of submitting Form M for calculating import duties.

With the slash, importers opening Form M today Monday, March 4, 2024, for import trade, will have a little relief in terms of the money that would be used to pay import duties compared to the importer who opened Form M last week.