The Central Bank of Nigeria (CBN) has increased the exchange rate for paying Customs duties at the nation’s seaports by 11.1 percent in response to the devaluation of the naira against the dollar in the foreign exchange market.
The apex bank raised the Customs FX duty rate from N1,150.16/$ to N1,277.526/$ on Thursday, April 25, according to information obtained from the official trade portal of the Nigeria Customs Service.
This adjustment represents an 11.1 percent increase compared to the previous rate of N1,150.16/$ used for opening Form M, resulting in an additional N127.366 required per dollar to clear goods at the port.
Meanwhile, the naira continued its depreciation at the official foreign exchange market, closing on Thursday at N1,309.88 to the dollar, marking a 12 percent decline week-to-date on the Nigeria Autonomous Foreign Exchange Market (NAFEM).
Compared to the previous week’s close at N1,169.99, the naira has lost N139.89 or 12 percent of its value within the past four days. The value of the naira weakened further from Monday’s close at N1,234.49.
Despite an increase in turnover from $89 million to $110 million, the value of the naira continued to depreciate. By Tuesday, it fell to N1,300.15 to the dollar, with intra-day trades occurring between N1,317 and N1000, recording a turnover of $133.65 million.
On Wednesday, the naira depreciated further to close at N1,308.52 to the dollar, with trades ranging from N1,367 to N1,098 per dollar. The market’s turnover continued to rise, reaching $197.54 million.
By Thursday, the naira’s value depreciated slightly to N1,309.88 to the dollar, with intra-day deals occurring between N1,439 and N1,000, while turnover significantly increased to $318.08 million.
Traders attribute the dollar’s depreciation to market forces, as demand continues to outstrip supply. The Central Bank of Nigeria intervened by selling dollars to Bureau de Change operators earlier in the week.
As a result, importers opening Form M today will need more money to pay import duties compared to those who opened Form M earlier in the week.
