The Central Bank of Nigeria (CBN) has revised the foreign exchange (FX) rate for customs clearance, marking an increase of N18.44, which adjusts the rate from N1593.84/$ to N1612.28/$.
This update is reflected on the Nigeria Customs Service (NCS) exchange rate portal and took effect on March 11, aligning with the market rate of that day, which was N1617.96 to the dollar.
The head of Nigeria Customs had previously indicated that with the naira’s floatation, the FX rate for customs clearance would be regularly updated to match the CBN’s official market rate.
In response to the business sector’s concerns about the frequent FX rate fluctuations and the ensuing complications during the Form M completion for imports, the CBN introduced a policy in February.
This policy mandates the use of the FX rate from the Form M issuance date for clearing goods.
The CBN’s strategy aims to eliminate the confusion caused by varying exchange rates and to facilitate better planning for both the Nigeria Customs and the business community.
Despite the CBN’s efforts to align the FX rate for customs clearance with its new floating policy, the move has faced criticism from industry experts and the business community.
Since November of the previous year, the CBN has been incrementally raising the FX rate from approximately N757/$ to the present figure.
Dr. Muda Yusuf, the Director-General of the Centre for the Promotion of Private Enterprise (CPPE), has expressed concerns that the substantial hike in the FX rate for customs clearance may incentivize importers to use ports in neighboring countries, potentially leading to an increase in smuggling activities.
