Central Bank of Nigeria slashes import duty calculation rate

08 Apr '24

1 min read

Central Bank of Nigeria slashes import duty calculation rate

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Insights

The CBN recently reduced exchange rate for computing import duty at seaports by 5.3 per cent.
The move comes close on heels of importers, clearing agents complaining that customs exchange rate rose higher than official foreign exchange market rate of naira and United States dollar.
Move reflects a proactive approach by CBN to address industry concerns.

The Central Bank of Nigeria (CBN) recently announced a 5.3 per cent reduction in the exchange rate for computing import duty at the nation’s seaports. This decision followed complaints from importers and clearing agents about the customs exchange rate exceeding the official forex market rate.

Dr. Kayode Farinto, former acting President of Association of Nigeria Licensed Custom Agent (ANLCA), highlighted the detrimental impact of fluctuating exchange rates on the import/export sector, advocating for a quarterly predictive exchange rate system to stabilise customs operations.

It discovered that the customs exchange rate on the Nigerian trade hub portal indicated a 5.3 per cent reduction between old and new prices even as importers are set to benefit from lower clearance costs, as import duties are tied to the dollar rate.

The move aims to alleviate financial burdens on importers and streamline customs procedures amid economic uncertainties caused by exchange rate fluctuations.

By implementing a more stable exchange rate regime, the CBN seeks to enhance predictability and support economic activities within the import/export sector.

Fibre2Fashion News Desk (DR)

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