CBN Slashes FX Duty Rates Amid Continued Naira Appreciation At Forex Market

The Central Bank of Nigeria (CBN) has slashed the exchange rate used to calculate import duties.

It was learnt that the rate was slashed by 5.3% to N1,544.081 per US dollar amid the continued Naira appreciation at the foreign exchange market.

It was gathered that the rate dropped to N1,544.81 per US dollar from N1,605 per USD in February.

At the close of work on Monday, FMDQ data showed that the Naira further appreciated to N1,534.19 per USD from N1,548.25.

The development was posted on the official trade portal of the Nigeria Customs Service.

In simpler terms, importers will now pay N86.08 less per dollar when clearing their goods through the ports.

This change reflects the CBN’s ongoing efforts to ensure that import duties accurately reflect the prevailing exchange rate.

By adjusting the rate downward, the CBN aims to ease the pressure on companies importing goods. The expectation is that this will lead to a more predictable and stable environment for international trade.

On February 23, 2024, the CBN issued a circular in response to concerns from importers regarding fluctuating import duty.

Key points of the CBN circular include acknowledging market volatility and price distortions due to the liberalisation of the foreign exchange market, addressing importers’ concerns about uncertainties caused by fluctuating exchange rates affecting duty calculations.