The current exchange rate for customs import duties and cargo clearance payments has surpassed the official foreign exchange market rate between the Naira and the USD.
According to checks on the customs exchange rate portal, the exchange rate for cargo clearance is standing at N1,330.36/USD, whereas the official market closed at N1,278/$1 yesterday, with an even stronger rate observed on the parallel market at N1,250/$1.
This increase in the exchange rate for customs import duties assessment comes after a recent adjustment from N1,303.85/$1, indicating a rise of N26.52 since March 31, 2024.
Naira Strengthens Against Dollar
Since mid-March, the Nigerian naira has seen a notable appreciation against the U.S. dollar, leading to a reduction in the foreign exchange (FX) rate utilized for assessing customs import duties. Within two weeks, this rate dropped from its peak of N1,612.28 on March 16 to its current value, marking a decline of N281.92 or 17.46%.
Throughout March, the naira experienced a significant appreciation, marking a gain of approximately 21.8%, the most substantial increase witnessed in five years.
Recent Reforms by the CBN
The recent surge in the naira’s value can be attributed to reforms implemented by the Central Bank of Nigeria (CBN), including a notable interest rate hike of 600 basis points over two months. This surge in the Monetary Policy Rate (MPR) rose from 18.75% at the beginning of the year to 24.75% by the end of March.
The central bank has taken proactive measures to regulate the activities of Bureau De Change (BDC) operators to curb speculation, proposing increased share capital requirements of N2 billion for Tier-1 licenses and N500 million for Tier-2 licenses.
Furthermore, the CBN has initiated the sale of foreign exchange to BDCs at a fixed rate, enforcing a maximum selling price, and has revoked the licenses of over 4,000 BDC operators nationwide in a significant regulatory crackdown.
