CBN Increases The Rate Of Customs Duty To N1, 560.511/$

The Central Bank of Nigeria (CBN), following a few days of stability, has increased the exchange rate by 1.1 percent once more for the purpose of calculating customs duties at the country's seaports.

The Nigeria Customs Service's official trade portal announced an increase in the customs duty rate, which was previously N1, 544.081/$ to N1, 560.511/$, on Wednesday, March 6, 2024.

The apex bank's current review indicates a 1.1 percent increase in customs duty rates and a N16.43 increase on each dollar required to clear goods at the port, as opposed to the previous exchange rate of N1, 544.081/$.

Importers opening Form M today will pay more due to the increase in the customs duty exchange rate.

Since import duties are based on the value of the dollar, importers opening Form M today will have to pay more to clear their goods due to the increase in the customs duty exchange rate.

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Its stability also affects prices, trade volume, investments, and aids in business planning.

However, since the June 2023 economic reforms, the apex bank has been implementing a floating naira policy, which has caused the naira to weaken even more and caused fluctuations in the rate of customs duty.

Experts have denounced the practice of permitting fluctuations in the Customs duty rate for cargo clearing, citing the adverse effects on businesses' bottom lines.