The exchange rate utilized for customs import duties and cargo clearance payments currently exceeds Nigeria’s foreign exchange market’s official Naira to USD rate.
According to data from the customs exchange rate portal, the rate for cargo clearance stands at N1,330.36 per USD, contrasting with the official market rate of N1,278 per USD and the parallel market rate of N1,250 per USD.
This marks an increase from the previous customs import duties assessment rate of N1,303.85 per USD, indicating a rise of N26.52 since March 31, 2024.
Naira Strengthens Against the Dollar
Beginning in mid-March, the Nigerian Naira appreciated against the U.S. Dollar, resulting in a reduction of the foreign exchange rate utilized for customs import duties assessment. This decrease, from N1,612.28 to the current value, signifies a decline of N281.92 or 17.46% within two weeks.
March witnessed a substantial appreciation of the Naira, with an increase of approximately 21.8%, marking the most significant surge in five years.
Recent Central Bank Reforms
The recent upsurge in the Naira’s value is primarily attributed to reforms enacted by the Central Bank of Nigeria (CBN), including a notable 600 basis points interest rate hike over two months. The Monetary Policy Rate (MPR) surged from 18.75% at the beginning of the year to 24.75% by the end of March.
CBN has taken proactive measures to regulate Bureau De Change (BDC) operators to mitigate speculation, proposing elevated share capital requirements of N2 billion for Tier-1 licenses and N500 million for Tier-2 licenses.
Additionally, the bank has introduced the sale of foreign exchange to BDCs at fixed rates, imposing a maximum selling price. It has revoked the licenses of over 4,000 BDC operators nationwide in a significant regulatory crackdown.
