Customs Duty: FX Rate Collection Rises To N1457/$1 In 6 weeks

The Nigerian Customs Service (NCS) has recorded a rise in the exchange rate for customs duties collection, hitting N1457/$1, marking the highest rate seen in just over six weeks, as per the data from the NCS exchange rate portal.

“The increase in customs duties reflects the evolving economic landscape,” stated Mr. Ahmed, a customs official. “It’s a response to various factors influencing currency fluctuations.”

The current rate marks a noticeable uptick since March 22, 2024, when it stood at N1572.5/$. This surge follows a gradual appreciation of the naira, notably after policies implemented by the Central Bank of Nigeria (CBN) saw the NCS exchange rate hit a three-month low of N1147/$.

However, recent trends indicate a reversal in the naira’s fortune. Despite March’s stellar performance, where the naira emerged as the world’s best-performing currency, its value has depreciated steadily since April, losing 26% of its value, according to Nairametrics analysis.

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“In May, we’ve observed a notable decline in the naira’s value, which has impacted various sectors,” remarked Mrs. Fatima, an economist. “This underscores the importance of monitoring exchange rate dynamics closely.”

On the official window, the naira closed at N1466/$, while in the parallel market, it stood at N1470/$. This decline coincides with the cessation of FX sales to Bureau De Change (BDC) operators below the official market rate, a move initiated by the CBN.

“The recent shift in FX reserves is primarily attributed to debt payments,” clarified Governor Yemi Cardoso of the CBN during the World Bank-IMF spring meeting. “Contrary to speculation, defending the naira isn’t our objective.”

Governor Cardoso emphasized the importance of maintaining credibility in managing the country’s reserves, highlighting the necessity of fulfilling financial obligations promptly.

“The fluctuations in reserves are part of sound financial management practices, ensuring transparency and accountability,” Governor Cardoso reiterated.

As the exchange rate landscape evolves, stakeholders continue to monitor developments closely, navigating the intricate dynamics shaping Nigeria’s economic trajectory.