The Nigeria Customs Service (NCS) has adjusted the foreign exchange (FX) rate for tariffs and duties, lowering it to N1,480 per dollar.
This change was noted by TheCable on Monday, reflected on the federal government’s single window trade portal. The new rate represents a 3.28 percent decrease from the previous rate of N1,530/$ recorded on May 17.
Interestingly, the customs rate is slightly lower than the official FX rate of N1,510/$ observed at the close of trading on May 24. Typically, the NCS aligns its FX rates for import duties with those recommended by the Central Bank of Nigeria (CBN), based on activities in the official FX market.
As of the close of today’s trade, the naira appreciated to N1,339.33/$.
Muda Yusuf, director-general of the Centre for the Promotion of Private Enterprise (CPPE), commented on May 16 that the NCS should consider setting a quarterly exchange rate between N800/$ and N1000/$ for import duties assessment.
Yusuf argued that continuous fluctuations in the exchange rate contribute to inflation, and a fixed rate could mitigate the impact of rising trade costs on inflation.
(TheCable)
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