The Nigeria Customs Services (NCS) has witnessed a decrease in the foreign exchange rate for cargo clearance at ports and other goods entry points, dropping to N1260.49/$ from N1330/$ in recent days.
This decline represents a reduction of approximately N70 for cargo clearance.
The newly adjusted rate mirrors yesterday’s closing rate on the official Nigerian Autonomous Foreign Exchange Market (NAFEM) window, where the naira concluded at N1255/$.
Over the past two weeks, the exchange rate utilized for import duty payments on the customs portal has been downward, reflecting the strengthening of the naira in the foreign exchange (FX) market. Previously reaching its peak at N1,624.7/$1, the rate has steadily declined to its current level.
The Customs Service has previously acknowledged that the Central Bank of Nigeria (CBN) frequently adjusts the exchange rate to align with the prevailing official market rate.
In response to concerns regarding the customs exchange rate fluctuations, the CBN clarified that the exchange rate applicable on the date of initiating the ‘Form M’ would serve as the benchmark for assessing import duties.
The Nigerian Customs chief had earlier expressed dissatisfaction with the frequent changes in the exchange rate for duty collection and cargo clearance, citing that there were approximately 28 different exchange rates for cargo clearance in the first quarter alone.
Recently, the CBN implemented various reforms to stabilise the forex market, curb speculative activities, rectify pricing irregularities, and strengthen the naira.
CBN’s Reforms:
The alignment of the official and parallel market exchange rates signifies the effective implementation of the CBN’s foreign exchange market reforms.
These reforms include restrictions imposed on international oil companies (IOCs), allowing them to repatriate only half of their foreign exchange earnings instantly, with the condition that they wait 90 days to remit the remainder.
Furthermore, the central bank now prohibits commercial banks from utilizing profits from foreign exchange sales for operational expenses and dividend disbursements. In a recent development, the central bank commenced offering Bureau de Change operators dollars at a fixed price of N1,251 per dollar.
