The Nigeria Customs Service (NCS) recently revised its foreign exchange (FX) rate for duties, setting it at N1,238.17 per dollar. This adjustment marks a decrease of 6.8% from the previous rate of N1,246.66/$, as noted on April 8.
This new rate, adopted by customs, was observed on Wednesday and notably falls below the official foreign exchange rate, which closed at N1,248.5/$ on April 9 at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
The decision to lower the FX rate for customs tariffs and duties aligns with efforts by the Central Bank of Nigeria (CBN) to stabilize the naira. On April 8, the CBN announced the sale of forex to bureau de change (BDC) operators at the rate of N1,101/$. This move followed a reduction in the CBN’s rate for dollar allocation to BDCs from N1,251/$ announced on March 25.
In a bid to further fortify the naira, the financial regulator instructed all banks to cease using foreign currency-denominated collaterals for naira loans.
The president of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dele Oye, had earlier advocated for customs duties to be charged in naira rather than dollars.
Oye stated that the Nigerian Customs Service should collect duties in the national currency, stressing the importance of conducting all bona fide government transactions in Nigeria’s sovereign currency.