Customs Alters FX Rate for Duty Clearance Twice in Less Than a Week

Apapa Customs Command Rakes-in N366bn in H1, 2021

In a move that signals a significant adjustment, the exchange rate for customs duties clearance has been modified for the second time in less than four days.

A scrutiny of the Nigeria Customs Service exchange rate portal reveals that the exchange rate has undergone its second alteration since April 18, 2024.

Initially reported by Nairametrics, the exchange rate for import duties clearance experienced a drop from 1238/$ to N1150/$, marking a decrease of N91. This adjustment comes as a follow-up to the recent change and underscores the dynamic nature of the forex landscape.

Responding to concerns regarding the frequency of changes in the Customs’ FX rate, the Central Bank of Nigeria (CBN) had earlier stated that the exchange rate on the date of the Form M application would be utilized in calculating duties collection.

The collaboration between the Nigeria Customs Service (NCS) and the Central Bank of Nigeria (CBN) regularly prompts adjustments to the exchange rate, aligning it with the official market rate on the NAFEM window, thus necessitating periodic revisions.

FX Market Movements
Last week, the naira concluded trading at N1,169.99/$ on the official market. Meanwhile, the parallel market witnessed a significant 15% weekly decline, with the naira closing at N1,050/$.

Over the past month, the naira has demonstrated notable strength in both the official and parallel markets, primarily attributed to reforms initiated by the Central Bank of Nigeria (CBN). These measures include selling USD to Bureau De Changes (BDCs) at N1101/$ and implementing cash pooling for International Oil Companies (IOCs), thereby limiting their immediate repatriation of foreign exchange, among other strategies.

During the recently concluded World Bank/IMF spring meeting, CBN Governor Yemi Cardoso referenced a Goldman Sachs report declaring the naira as the best performing currency globally. He emphasized the bank’s shift from firefighting to strategic planning across key sectors, marking a significant transition in approach.

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