The exchange rate for the Nigeria Customs Service (NCS) duties collection has risen to N1618.73/$ according to the latest figure from the service’s exchange rate portal.
This represents an increase of N18 from the previous rate of N1600.32 to the USD.
The current exchange rate for customs duties payment is the highest since 2nd March 2024, when the exchange rate for customs duties collection stood at N1630/$.
The increase in the customs duties exchange rate comes amidst the naira depreciating by 6.43% in the month of July and 6.43% in the month of July.
Data from FMDQ shows that the naira reached a four-month low in July, fluctuating between N1,500.32 and N1,621.12, surpassing the N1,600 mark.
This depreciation happened despite the Central Bank of Nigeria’s (CBN) attempts to address the official market’s liquidity issues through dollar sales.
In July, the CBN conducted at least three foreign exchange (FX) sales to authorized dealers and one sale to Bureau de Change (BDC) operators as the naira faced significant pressure.
This intervention from the CBN likely increased FX turnover on the Nigerian Autonomous Foreign Exchange Market (NAFEM) window last month. Data from Nairalytics, the research division of Nairametrics, indicates that FX turnover in the official market rose by 30%, reaching $4.34 billion in July, up from $3.33 billion in the previous month.
Revenue increase from the customs service in the first half of 2024
In the first half of 2024, the Nigeria Customs Service (NCS) generated N2.74 trillion in revenues. This marks a 127% increase compared to the same period in 2023, despite a decline in cargo throughput. The rise in revenue occurred despite challenges such as foreign exchange rate fluctuations and reduced cargo transactions during the quarter.
In the first quarter of 2024, the Nigeria Customs Service (NCS) reported significant challenges due to fluctuations in the Central Bank of Nigeria’s (CBN) exchange rate regime for import duties, which have disrupted its operations.
The NCS noted that it had to use 28 different exchange rates for import duty collection during the first quarter, with about 13 different rates applied in March alone.
The Presidential Committee on Fiscal Policy and Tax Reforms had earlier recommended the exchange rate for customs duty collection be pegged to the benchmark exchange rate used in the 2024 appropriation act of N800/$ to assuage the pain of the business community.
Also, the Centre for the Promotion of Private Enterprise (CPPE) had asked the CBN to adopt a quarterly exchange rate for import duties collection to enable importers to plan their business activities.