The Nigeria Customs Service (NCS)’s exchange rate for import duties collection has risen by 11.0% from N1150/$ to N1277.52/$, according to the latest update on the customs exchange rate window.
This indicates an increase of N127.36 between April 23 and 25, 2024.
The Central Bank of Nigeria (CBN) had previously announced that the exchange rate indicated on the Form M application date would be used for duty collection calculations.
Collaborating closely with the CBN, the NCS regularly updates the exchange rate to synchronize with the official market rate on the NAFEM window, consequently leading to frequent adjustments in the rate.
The exchange rate for customs import duties collection has been steadily increasing after a Naira depreciation from a peak of N1612.28/$ earlier in March to just over 1,100 occasioned by the strengthening of the naira.
However, following a depreciation of the Naira in the past one week, the exchange rate has been rising steadily.
On the 21st of this month, the exchange rate stood at N1,150 from N1,147 in view of marginal weakening of the naira.
On Thursday, the naira closed on the official window at N1329.4 to the greenback on the official window, according to data from the CBN. Two days ago, the naira slumped 17% to a one-month low at N1,300/$1 on the official window.
In the past few days, the CBN Governor, Yemi Cardoso, has touted the impact of his reforms on the foreign exchange market, referencing a Goldman Sachs report which tagged the naira as the best performing currency in the world in the past one month.
He further stated that the apex bank has now moved from “firefighting to strategic planning across key areas”
The recent devaluation of the value of the naira serves as a litmus test to the sustainability of the recent reforms by the CBN which include sales of FX to BDCs below the official market rate, clamp down on Binance and others.