The Central Bank of Nigeria (CBN) has reduced the foreign exchange (FX) rate for importers to clear goods at Nigerian ports, reflecting the recent gains of the naira against the US dollar. This adjustment follows a week-long rally of the naira, driven by strategic interventions from the CBN.
As of the latest revision, the CBN has cut the Customs duty exchange rate to ₦1,573.09 per dollar, down from the previous rate of ₦1,583.527 per dollar. This move is expected to ease the financial burden on importers, allowing them to pay less when opening Form M for cargo clearance.
The naira’s recent strength can be attributed to two significant interventions by the CBN. On August 7, 2024, the apex bank sold foreign exchange to 26 dealer banks through the Retail Dutch Auction System (rDAS). This was followed by another intervention on August 9, 2024, where the CBN sold over $800 million to reduce the high demand for foreign currency, which had been putting pressure on the naira.
Despite these gains, the naira experienced a slight decline on Tuesday, August 13, 2024, falling to ₦1,582.09 per dollar from ₦1,570.99 the previous day, according to data from FMDQ Exchange. The currency was traded at an intraday high of ₦1,607.50 and a low of ₦1,496, with a turnover of $201.43 million.
This development coincides with the commencement of a 150-day duty-free window announced by the Nigerian government, a policy expected to result in a revenue loss of approximately ₦188 billion, as projected by the Customs Comptroller General, Adewale Adeniyi.
The CBN’s decision to lower the exchange rate for customs duties aligns with its broader efforts to stabilize the naira and manage inflationary pressures within the economy.
