In a bid to intervene on the devaluation of the naira, the Central Bank of Nigeria has cuts down on the exchange rate for computing Customs import duty rates in the nation by 5.3 percent following the stability of the naira against the dollar.
At the close of work on Monday, FMDQ data showed that the Naira further appreciated to N1,534.19 per USD from N1,548.25.
The Customs FX duty rate was reviewed downward from N1630.159/$ to N1, 544.081/$ on Monday, March 04, 2024, according to information obtained from the official trade portal of the Nigeria Customs Service.
This represents a 5.3 percent reduction when compared to the old rate of N1630.159/$ used as of Friday, March 2, 2024, and a decrease of N86.078 on a dollar needed to clear goods from the port.
This move by the CBN will stabilise the FX rate for Customs duty evaluation to reduce the economic impact of paying a high tariff on businesses as the fluctuation and instabilities have impacted the business environment.
It has been reported that the apex bank last week, issued a new directive to Customs to use the rate on the date of submitting Form M for calculating import duties.
With the slash, importers opening Form M from Monday, March 4, 2024, for import trade, will have a little relief in terms of the money that would be used to pay import duties compared to the importer who opened Form M last week.
In a statement made by Wassim Elhusseini, CEO of Nestle Nigeria, “The devaluation of the naira which led to a revaluation of our foreign currency obligations undoubtedly impacted our financing cost and consequently the profit after tax. However, we remain optimistic about our capacity to overcome the current economic difficulties and emerge stronger,”
