The Central Bank of Nigeria (CBN) has once again adjusted the official exchange rate used for clearing imported goods at the nation’s seaports. This marks the sixth exchange rate change made by the CBN since the beginning of 2024, presenting new challenges for importers.
The latest adjustment, implemented on Thursday morning, February 15, 2024, saw the exchange rate rise from N1,481.482 per dollar to N1,515.092 per dollar. This change, posted on the official trade portal of the Nigeria Customs Service, means that importers will now incur higher costs to clear their goods, as import duties are pegged against the dollar.
A licensed Customs clearing agent, Joe Madu, expressed concerns about the continuous rate changes, citing the uncertainty they bring to Nigeria’s business environment. Madu highlighted the significant pressure faced by businesses, with many containers remaining abandoned at the ports. He emphasized the financial strain experienced by agents like himself, stressing the need for urgent action, including potential protests, to address the escalating situation.
The timeline of rate adjustments in 2024 illustrates the frequent changes implemented by the CBN:
– February 2: Rate adjusted to N1,356.883 per dollar.
– February 3: Raised to N1,413.62 per dollar.
– February 10: Increased to N1,417.635 per dollar.
– February 12: Reviewed to N1,444.56 per dollar.
– February 14: Raised to N1,481.482 per dollar.
– February 15: Increased to N1,515.092 per dollar.
These adjustments come on the heels of the naira’s depreciation to a record low in the official market on Wednesday, February 14. Data from FMDQ securities revealed that the naira reached a high of N1,582 against the US dollar at the Nigerian Autonomous Foreign Exchange Market (NAFEM), eventually settling at N1,503 per dollar by the close of business.
In related news, the National Bureau of Statistics (NBS) reported a significant drop in the value of used vehicle imports in 2022. The data indicated a 47% decrease, with the value falling from N617.48 billion in 2021 to N335.05 billion in 2022. Notably, the import value of used cars with diesel or semi-diesel engines experienced fluctuations throughout the year, totaling approximately N325.05 billion.
As the exchange rate adjustments continue and the naira faces ongoing challenges, stakeholders in Nigeria’s import and financial sectors closely monitor developments, navigating the evolving economic landscape with caution and adaptation.
