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Again, Customs raises FX rate for import tariffs

by The Economy

For the third time in 2023, the Nigerian Customs Service (NCS) has again raised benchmark naira/dollar rate for import tariffs.

The Economy gathered that the rates were reviewed upward to align with changes in the foreign exchange rate.

The updated rates are now visible on the federal government’s single-window trade portal.

As per the information available on the portal, the NCS exchange rate has increased by 3.43%, approximately N26.15, reaching N783.174/$ as of Sunday.

This marks an increase from the previous rate of 757.023/$ that was recorded during the week.

It should be noted that the NCS imposes customs duties in Nigeria, which are charges levied on imported goods, among other tariffs.

Different items are subject to varying rates, usually ranging from 5% to 35%, and these rates are determined based on the prevailing harmonized commodity and coding system (HS code).

On Friday, the naira appreciated against the USD in the official market window trading at N780.14/$1. Its rise represents a 27.77% increase.

However, the appreciation of the naira on the official window did not translate to the parallel market where the naira depreciated by 3.54%, quoted at N1130/$1, while peer-to-peer traders quoted around N1100/$1.

In October, the Central Bank of Nigeria (CBN) declared the removal of restrictions on 43 items that were previously barred from accessing foreign exchange.

As a result, there has been an increase in demand for forex in the official window otherwise known as NAFEM.

The naira has lost over 40% of its value since the Central Bank started its reforms in June. The Federal government has been struggling to stabilize the foreign exchange market in the past few months.

During the Nigeria Economic Summit, said there is a fine line of sight of funds amounting to around $10 billion in a matter of weeks.

Most foreign investors have been unable to take back funds invested in Nigeria creating a backlog estimated to be around $7 billion.


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The Nigerian Economy

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