The Central Bank of Nigeria, CBN, again increased the exchange rate for calculating Customs duties at the country’s seaports by 1.9 per cent to N1.624.732 per US dollar amid the Naira crisis.
Data on the official portal of the Nigeria Customs Service indicated that the rate was raised from N1,593.888 to N1.624.732 per USD on Tuesday.
The implication is that importers who opened Form M on Tuesday will pay more to clear their goods as import duties are benchmarked against the dollar.
Meanwhile, port users have rejected the policy of using the exchange rate on Form M for import duty payment because it will add more challenges to the trade process.
The National President of the Association of Nigerian Licensed Customs Agents, Emenike Nwokeoji, said using the Form M rate will create a discrepancy in duties paid on similar imports.
According to him, it would further create uncertainties around the country’s pricing structure of goods and services.
“It will also create abnormal increases in the final sale prices of items, which is largely driven by uncertainties, rather than market fundamentals, and will have implications on inflations,” he warned.
OsunDailyNG recalls that the CBN had raised the exchange rate for import duties at least six times in the last six weeks.
On February 2, the CBN adjusted the exchange rate for calculating import duties from N951.941 to N1,356.883 per US dollar; on February 3, it was raised to N1,413.62/$; on February 10, it was raised to N1,417.635/$; on February 12, it was reviewed to N1, 444.56/$ and February 14, the rate has been raised to N1, 481.482/$.
Meanwhile, the CBN also reduced the exchange rate depending on the standing of the Naira against the USD in the forex market.
Earlier in a fresh guideline in February, the apex bank advised NCS to adopt a foreign exchange closing rate on the date of the Form M submission by importers for the clearance of goods and import duty assessment.
