The Central Bank of Nigeria (CBN) has decided to increase the exchange rate for computing Customs duties at the nation’s seaports and airports.
Data obtained from the federal government trade portal shows that the Customs duty exchange rate is now N1,503.801 per dollar.
The new rate represents a 0.25% increase from the previous rate of N1,499.91 per dollar as of Monday, February 10.
Naira exchange rate
The new Customs duty exchange rate reflects the current performance of the naira in the foreign exchange markets.
The naira in the Nigerian Autonomous Foreign Exchange Market (NAFEX), the official market lost N2.26 or 0.15% to trade at N1,506.56/$1 compared with the preceding day’s N1,504.30/$1.
What is import duty?
Import duty, also known as Customs duty, is a tax collected by customs authorities on behalf of the federal government from importers while clearing goods at the seaport.
The value of the imported goods usually determines the amount to be paid, calculated in foreign currency.
Customs suspends 4% fob import charge
The Nigeria Customs Service (NCS) has suspended the implementation of the contentious 4% Free-on-Board (FOB) charge on imports, citing ongoing consultations with the finance ministry, trade experts, and business groups.
In a statement signed by its spokesperson, Abdullahi Maiwada, the NCS announced the suspension of the charge, which is determined based on the value of goods at the point of export, excluding shipping and insurance cost.
Introduced under the Nigeria Customs Service Act 2023, the 4% FOB charge was meant to replace the 1% Comprehensive Import Supervision Scheme (CISS).
However, concerns over its potential impact on import costs prompted the NCS to halt its implementation.
The agency stated that the decision follows concerns raised by businesses and industry groups regarding the new levy.
The customs service said the suspension would allow for a comprehensive review of its revenue framework, particularly as existing service provider contracts, including those with Webb Fontaine, come to an end.
CPPE wants customs rate pegged at N1,000/$
Legit.ng earlier reported that Muda Yusuf, the CEO of the Centre for the Promotion of Private Enterprise(CPPE), has urged the Central Bank of Nigeria (CBN) to change its policy on the Customs import duty rate to clear goods at ports.
He believes that a significant policy adjustment is necessary to complement current measures to address the country’s ongoing cost-of-living crisis.
