The exchange rate for clearance of goods and import duties assessment by the Nigeria Customs Service (NCS) has dropped from N1,246.66/$ to N1,238.17 to the USD. This represents a decline of N6.14 in the past two days.
The current customs exchange rate falls below the official market rate of the NGN to the USD. Yesterday, the naira closed at N1,248.5/$ on the official NAFEM window.
CBN’s latest effort in stabilising the FX market
The consistent drop in the Customs exchange rate in the past few weeks reflects the strengthening of the naira during the period. It also reflects the impact of the CBN reforms since the beginning of the year on the value of the naira in the forex market.
This week, the CBN doubled down on its effort to strengthen the value of the naira by selling forex to Bureau De Change (BDC) operators at N1,101/$ and warned them to sell at 1.5% spread. This figure meant that BDCs were to sell forex at N1.117/$- significantly below the official market rate on the NAFEM window.
Also, the apex bank also instructed banks to desist from using foreign currencies denominated collaterals for naira loans with the exception of Euro bonds by the Federal government or guarantees of foreign banks like Letters of Credit.
However, the CBN provided a 90-day window for banks to wind down all existing loan collaterised in USD apart from the exceptions mentioned.
Recommended reading: Exchange rate for Customs cargo clearance drops to N1260
Complaints of customs USD rate by stakeholders
The decline in the customs exchange rate for import duties assessment means a reduction in the burden of importers. However, stakeholders in the trade sector have questioned the rationale of the Nigeria Customs Service (NCS) charging import duties in foreign currencies other than the naira.
The President of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Mr. Dele Oye had earlier stated that the customs rate for import duties should be charged in naira rather than the USD explaining that the federal government should walk its talk to encouraging the use of naira only in the economy.
Recommended reading: Customs exchange rate for import duties falls below official market rate
