The Central Bank of Nigeria (CBN) is preparing to adjust the customs exchange rate used for clearing goods at the country’s ports and airports as the naira continues its steep decline, reaching its lowest value in six months. The exchange rate, which has remained steady since August 24, 2024, is expected to be revised as the naira’s depreciation accelerates.
Currently, importers pay N1,564.93 per dollar to clear goods, a rate lower than the recent levels seen in the broader foreign exchange market. The CBN uses the official rate from the Nigerian Autonomous Foreign Exchange Market (NAFEM) to determine the exchange rate for customs duties, pegged to the date of importers’ “Form M” submissions.
On September 4, 2024, the naira fell to N1,625.88 per dollar in the official market, a 0.89% decline from the previous day. This marked the currency’s weakest performance since March 2024. As the gap between the official and black market rates widens, there is increasing pressure on the CBN to adjust the customs exchange rate to reflect the new realities of the market.
Calls for Reform
Economists and industry experts, including Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), have urged the CBN to peg the customs exchange rate at N1,000 per dollar. Yusuf argues that a significant policy shift is required to alleviate the pressures of rising import costs, which are contributing to Nigeria’s ongoing cost-of-living crisis.
The anticipated rate adjustment is part of broader efforts to stabilize the naira and address economic challenges that have caused uncertainty in both the official and parallel markets. As the CBN considers revising its policy, importers and other stakeholders in the trade sector await further announcements on the changes to customs duties.
