The Central Bank of Nigeria (CBN) has instructed the Nigerian Customs Service (NCS) to align the forex rate used for import clearance with the official exchange rate.
Hassan Mahmud, Director of the CBN’s Trade and Exchange Department, issued this directive in a circular on Friday.
The CBN highlighted concerns over the fluctuating customs duties, which have led to pricing inconsistencies and unpredictable cost escalations in the market.
The NCS has been mandated to adopt the FX closing rate on the date of Form M submission by importers for duty assessment and clearance of goods.
This directive aims to mitigate disruptions caused by frequent updates on customs’ website regarding forex market changes.
The circular stated: “Given the FX market liberalization on Willing Buyer-Willing Seller basis, the CBN acknowledges importers’ concerns over fluctuating Import Duty Assessment levies by the Nigeria Customs Service.
“These uncertainties have contributed to pricing instability and abnormal price hikes, driven more by uncertainties than market fundamentals, impacting near-term inflation trends.
“Hence, the CBN advises the NCS and relevant parties to use the closing FX rate on the Form M opening date for importation as the basis for Import Duty Assessment. This rate remains valid until the importation and clearance of goods by importers.
“Effective February 26, 2024, the Form M opening date’s closing rate will be used for import duty assessment, replacing Memorandum 9, J (2) of the CBN Foreign Exchange Manual, 2018.
“While acknowledging initial market volatility post-liberalization, the CBN anticipates these reforms will stabilize the market, fostering investor confidence and economic growth.”
