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From Adanna Nnamani, Abuja
The Nigeria Customs Service (NCS) exchange rate for clearance of goods and import duties assessment, has dropped from N1,246.66/$ to N1,238.17 to the USD. This indicates a decrease of N6.14 within the last 48 hours.
The official market rate of the NGN to the USD is now higher than the customs exchange rate as the naira closed at N1,248.5/$ the official NAFEM window on Tuesday.
The naira’s strengthening over the previous few weeks is reflected in the Customs exchange rate’s steady decline. It also shows how the CBN reforms implemented since the year’s commencement have affected the value of the naira on the foreign exchange market.
The CBN increased its efforts this week to improve the value of the naira by offering to sell foreign exchange to Bureau De Change (BDC) operators at N1,101/$ and cautioning them against selling at a 1.5% spread. This amount indicated that BDCs were to sell foreign exchange at a considerable discount to the official market rate on the NAFEM window, at N1.117/$-.
Furthermore, the apex bank instructed banks to refrain from using foreign currencies denominated collaterals for naira loans with the exception of Euro bonds by the Federal government or guarantees of foreign banks like Letters of Credit.
The CBN also gave a 90-day window for banks to close all outstanding loans collateralized in USD asides the exceptions mentioned.
The decrease in the customs exchange rate for assessing import duties will lighten the burden on importers. Trade sector stakeholders have raised concerns about the Nigeria Customs Service (NCS) charging import duties in currencies other than the naira.
Mr. Dele Oye, the President of the Nigeria Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), had earlier declared that import duties should be charged in naira instead of USD, stating that the federal government should support the use of naira exclusively in the economy by walking the talk.
