The Central Bank of Nigeria (CBN) has effected an upward review of the exchange rate for Customs duties at the nation’s seaports.
The duties were increased by 11.1% due to the devaluation of the naira against the United States (US) dollar in the foreign exchange market.
The new Customs FX duty rate is now ₦1,277.526/$, up from the previous rate of ₦1,150.16/$, as reported on Thursday, April 25, through the official trade portal of the Nigeria Customs Service.
This adjustment reflects an 11.1 per cent increase compared to the previous rate of ₦1,150.16/$ used for Form M applications, resulting in an additional ₦127.366 per dollar required for goods clearance at the port.
In general, the naira’s depreciation persisted in the official market, closing at N1,309.88 to the dollar on Thursday, marking a 12 per cent decline for the week on the Nigeria Autonomous Foreign Exchange Market (NAFEM).
In contrast to its closing value of ₦1,169.99 last week, the naira has lost ₦139.89, or 12 percent, within the past four days. On Monday, it closed weaker at ₦1,234.49.
In spite of the depreciation, turnover has increased from $89 million to $110 million.
However, by Tuesday, the naira’s value further depreciated to N1,300.15 to the dollar, with intra-day trading ranging between ₦1,317 and N1,000.
At the end of Tuesday’s trading, a turnover of $133.65 million was recorded. Continuing the trend, on Wednesday, the naira closed at ₦1,308.52 to the dollar, with trades ranging between ₦1,367 and ₦1,098. The market turnover continued to rise, reaching $197.54 million.
On Thursday, the naira slightly depreciated to ₦1,309.88 to the dollar, with intra-day deals ranging between ₦1,439 and ₦1,000.
Notably, the turnover significantly increased to $318.08 million.
Traders have observed that the decline in the dollar’s value resulted from market forces, with demand consistently exceeding supply. On Monday, the Central Bank of Nigeria sold dollars to Bureau de Change operators.
As a result, importers initiating Form M transactions today will need a higher amount of money to cover import duties compared to those who completed Form M earlier in the week.
Reports say that the adverse climate events have caused African economies to lose $13.7 billion.
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