By Steve Agbota
The exchange rate used by the Nigeria Customs Service (NCS) to calculate import duty has again increased to N1618.732/$1 following a further depreciation of the naira against the US dollar.
According to the latest figure posted on the NCS exchange rate portal on Sunday, this represents an increase of N18 from the previous rate of N1600.32. This increase comes amidst the naira depreciating by 6.43 per cent in the month of July.
However, data from FMDQ shows that the naira reached a four-month low in July, fluctuating between N1,500.32 and N1,621.12, surpassing the N1,600 mark.
Daily Sun learnt that this depreciation happened despite the Central Bank of Nigeria’s (CBN) attempts to address the official market’s liquidity issues through dollar sales.
In July, the CBN conducted at least three foreign exchange (FX) sales to authorised dealers and one sale to Bureau de Change (BDC) operators as the naira faced significant pressure.
Speaking with Daily Sun on the development, a clearing agent, Oladimeji Majekodunmi, said that the cost of clearing a container at the port has increased significantly.
“The moment CBN increases, Customs don’t have a choice than to adjust the new duty in their system. Now to clear a 40ft container of food items, it cost nothing less than N20 million and above. This was far below the amount we used to clear same consignment before. You know how many times CBN has increased the rate in the last few months.
“The cargo coming into the country has dropped significantly to about 30 per cent. Come to the port now, you will see how empty it is. Many importers have gon bankrupt. The whole situation is so precarious,” he said.
He said that there is need for Central Bank to give importers a stable exchange rate, saying fluctuations of exchange rate is not good for the economy.
Meanwhile, President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, has urged the federal government, through the Central Bank of Nigeria (CBN), to implement a special exchange rate for calculating import duties.
Amiwero said in his petition letter
Amiwero emphasised that a stable and manageable exchange rate for import duties would stimulate economic growth and benefit the broader Nigerian population.
Amiwero expressed significant concern over the current practice of using floating exchange rates for customs duty calculations. He argued that this approach has contributed substantially to the rising costs of goods and escalating food prices in Nigerian markets.
According to Amiwero, the use of a floating exchange rate introduces unpredictability into the process of clearing goods at ports, which complicates logistics and places a heavy financial burden on consumers.
“We wish to highlight to the Federal Government the severe challenges faced by Nigerians, particularly due to the soaring prices of goods driven by the floating exchange rate applied to import duty computations.
“This issue has drastically reduced importation, disrupted transportation, and made basic foodstuffs increasingly scarce, especially for those who struggle to make ends meet and have no financial safety net,” he added.
He further explained that the liberalised foreign exchange market’s fluctuating rates have led to inconsistent and unpredictable pricing, causing an abnormal surge in the final sale prices of goods.
To address these challenges, Amiwero called for measures to eliminate the uncertainties and inconsistencies associated with the current exchange rate system.
He stressed the importance of stabilising the domestic trading environment to provide a more predictable framework for importers.