For the purpose of assessing import tariffs and clearing products, the Nigeria Customs Service (NCS) has changed the exchange rate from N1,246.66/$ to N1,238.17 to the USD. This indicates an N6.14 decrease over the previous two days.
The official market rate of the NGN to the USD is now higher than the customs exchange rate. On the official NAFEM window, the naira closed at N1,248.5/$ yesterday.
The naira’s strengthening over the previous several weeks is reflected in the Customs exchange rate’s steady decline. It also shows how the CBN changes implemented since the year’s commencement have affected the value of the naira on the foreign exchange 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.
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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.
