The Central Bank of Nigeria (CBN) has slashed the Customs exchange rate for calculating Customs duties at the nation’s seaports to N1,492.08/$1,
The Central Bank of Nigeria has slashed the Customs exchange rate for calculating Customs duties at the nation’s seaports to N1,492.08/$1, barely 24 hours after increasing it to N1,502.136/$1.The Central Bank of Nigeria has slashed the Customs exchange rate for calculating Customs duties at the nation’s seaports to N1,492.08/$1, barely 24 hours after increasing it to N1,502.136/$1.
This adjustment marks the second time the FX duty rate was slashed in May; it was previously decreased on May 7 from N1,441.53/$1 to N1,382.16/$1, representing a 4.29 per cent and N59.37 difference. This makes it the eighth adjustment in May 2024 alone, with more expected. “When you initially charge your importers based on a certain exchange rate, and then it changes abruptly, it not only causes financial strain but also strains business relationships,” he said. He stressed that the volatility of the exchange rate has led to disputes and renegotiations, disrupting business continuity.
“One moment you are planning based on an exchange rate of N1,400/$1, and the next it’s skyrocketed to N1,500/$1,” Nicol explained, noting that this instability makes it challenging for businesses to secure the necessary funds for clearing goods, leading to increased operational risks and potential financial losses.
He warned that continuing this path could lead to a reduction in import activities, as more businesses might find it unsustainable to operate under such unpredictable financial strain. For the first four months of 2024, Lagos, Rivers, Abuja and Enugu have emerged as the topmost destinations where telecoms operators recorded the highest forms of fibre cuts.
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