Victor EzejaThe Nigeria Customs Service Exchange Rate for calculating duties collections at the ports has risen to N1601.86/$ as the naira value tumbles.
The customs exchange rate for import duties had dropped to N1541.59/$ on Wednesday, 24th July from N1584.24 on Friday, 19th July following a slight appreciation of the naira on Monday, 22nd July when trading at the official market closed at N1,500/$.
Join our WhatsApp ChannelThe latest rise of the customs duty exchange rate followed the depreciation of the naira after Monday’s gain.
According to the Nigeria Autonomous Foreign Exchange Market (NAFEM), data published on the FMDQ Securities and Exchange platform, trading closed N1,609.29/$ at the official market on Friday, 26th July 2024. The latest exchange rate is the lowest level since 14 March 2024, when it was N1,608.98 against $1.
Adhering to CBN’s directive since June last year, the Nigeria Customs Service has been adjusting its exchange rate for duties collection in line with the official exchange rate, leading to fluctuation as naira value rises and falls in the foreign exchange market. The latest rise means importers are to pay more henceforth.
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Importers and other stakeholders in the trade sector have continued to express concerns about the impact of the instability on their business planning and operations.
The naira ended the week on a note of depreciation despite efforts by the Central Bank of Nigeria (CBN) to boost liquidity in the foreign exchange market and stabilise the local currency’s value.
Prime Business Africa reports that the CBN has disbursed about $254.5 million of forex to authorised dealers within the last two weeks to meet demands in the retail end of the foreign exchange market. The latest one was $148 million sold to 29 authorised dealers between Monday, 22 July and Tuesday, 23 July 2024, at exchange rates between N1,470.00/$1 and N1,510.00/$1, according to a statement released by the apex bank on Friday.
Stabilising the value of the naira and reducing inflation rate has been the preoccupation of the Central Bank. At the 296th Monetary Policy Committee meeting held last week Monday, 22 July and Tuesday, 23 July 2024, the committee members voted to further increase the Monetary Policy Rate by 50 basis points from 26.25 per cent to 26.75 per cent. The CBN also expanded its “asymmetric corridor,” raising lenders’ borrowing costs to 500 basis points above the policy rate to tighten naira liquidity and reduce the return on their deposits to 100 basis points below the benchmark.
Analysts have repeatedly said that the CBN’s monetary policy measures need to be complimented by fiscal strategies to raise more revenue, especially through coordinated action to boost domestic production both for meeting local needs and exports to earn more forex and also reduce pressure on the naira.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
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