The Central Bank of Nigeria (CBN) has recently increased the import duty exchange rate to ₦1,618.73 per dollar, marking an increment of ₦18 from the previous rate of ₦1,600.32.
This adjustment, effective as of August 5th, 2024, reflects ongoing fluctuations in the value of the naira against the dollar. The new rate represents a 1.14% increase and is the highest since March 2024 when the rate stood at ₦1,630 per dollar.
This change comes amidst huge depreciation of the naira, which saw a 6.43% decline in July 2024. Despite the CBN's efforts to stabilize the currency through multiple foreign exchange sales to authorized dealers and Bureau de Change operators, the naira continued to face pressure, fluctuating between ₦1,500.32 and ₦1,621.12 throughout the month.
The updated exchange rate for customs duties will impact the cost of clearing goods at Nigerian ports and airports, making imported items such as phones and cars more expensive.
This adjustment aligns with the recommendations from the Presidential Committee on Fiscal Policy and Tax Reforms, which suggested pegging the customs duty exchange rate between ₦800/$ and ₦1,000/$ to mitigate the business community's challenges.
The Nigeria Customs Service (NCS) has faced operational disruptions due to these exchange rate fluctuations, having used 28 different rates for import duty collection in the first quarter of 2024 alone.
The CBN's directive now mandates that customs duties be calculated based on the exchange rate on the day Form M is submitted, a mandatory online documentation process for importing physical goods into Nigeria.
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