The Central Bank of Nigeria (CBN) has implemented a new exchange rate for calculating customs duties, offering relief to importers struggling to clear goods at the nation’s ports and airports. The updated rate, effective from Wednesday, August 22, 2024, now stands at ₦1,569.53 per dollar, a slight decrease from the ₦1,575.19 rate used earlier in the week.
This adjustment comes amid recent gains by the naira in the official foreign exchange market, where it strengthened to ₦1,586.11 per dollar on Thursday, up from ₦1,592.38. The improvement in the naira’s value has prompted the CBN to adjust the customs duty rate accordingly, making it slightly cheaper for importers to clear their goods.
The change has been welcomed by businesses and importers who have been facing challenges due to the fluctuating exchange rates, which directly impact the cost of clearing goods at the ports. The reduction, although modest, is seen as a positive step towards easing the financial burden on importers.
However, some experts believe that more needs to be done to stabilize the situation. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), has called on the CBN to take further action by fixing the exchange rate at ₦1,000 per dollar for the next six months. Yusuf argues that this measure would help mitigate the adverse effects of exchange rate volatility on trade and reduce the overall costs associated with cargo clearance.
The CBN’s move is part of broader efforts to manage the exchange rate and support the naira amidst ongoing economic challenges. The bank has recently conducted additional forex sales and emphasized the importance of increasing domestic crude oil production and exports as key strategies to enhance the naira’s value.
As Nigeria continues to navigate the complexities of its foreign exchange market, the CBN’s policies will remain crucial in shaping the economic landscape and providing stability for businesses operating within the country.
