The Nigeria Customs Service (NCS) has adjusted the exchange rate for the clearance of goods and assessment of import duties, lowering it from N1,246.66/$ to N1,238.17 to the USD. This represents a decrease of N6.14 over the past two days.
The current customs exchange rate is below the official market rate of the NGN to the USD, which stood at N1,248.5/$ on the official NAFEM window yesterday.
CBN’s Efforts in FX Market Stabilization
The consistent decline in the Customs exchange rate in recent weeks signals the strengthening of the naira during this period. It also reflects the impact of the Central Bank of Nigeria (CBN) reforms implemented since the beginning of the year on the naira’s value in the forex market.
This week, the CBN intensified its efforts to bolster the naira’s value by selling forex to Bureau De Change (BDC) operators at N1,101/$ and instructing them to maintain a 1.5% spread. This directive implies that BDCs should sell forex at N1.117/$—considerably lower than the official market rate on the NAFEM window.
Additionally, the apex bank directed banks to refrain from using foreign currency-denominated collateral for naira loans, except for Eurobonds issued by the Federal government or guarantees from foreign banks like Letters of Credit.
However, the CBN granted banks a 90-day window to phase out all existing loans collateralized in USD, except for the mentioned exceptions.
Impact on Importers and Trade Sector
Reducing the customs exchange rate for import duties assessment signifies a lighter financial burden for importers. Nevertheless, stakeholders in the trade sector have raised concerns about the Nigeria Customs Service (NCS) charging import duties in foreign currencies rather than the naira.
Mr. Dele Oye, President of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), previously advocated for import duties to be charged in naira instead of USD. He emphasized that the federal government should promote the use of the naira exclusively in the economy, aligning actions with stated objectives.
