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The exchange rate for the computation of import duties by the Nigeria Customs Service (NCS) has surged to N1,549/$1, according to the latest data from the Customs exchange rate portal. This marks an increase of N37 from the previous rate of N1,512/$1
The persistent rise in July follows a relatively stable June with no significant fluctuations. Notably, the Central Bank of Nigeria (CBN) has adjusted the exchange rate for Customs duties collection seven times in just the first 10 days of July, compared to five different rates used in June.
Earlier, the Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms recommended pegging the FX rate for customs duties to the 2024 budget benchmark to mitigate the impact of high exchange rates on businesses, particularly manufacturers and importers. The committee proposed an exchange rate of N800/USD until the end of the year to combat inflation and facilitate business planning.
The consistent increase in the Customs duties exchange rate reflects a marginal weakening of the naira, despite an increase in the country’s foreign reserves. On July 9, 2024, the naira closed at N1,532.58/$1 on the official NAFEM window, further weakening from N1,521/$1 the previous day.
Nigeria’s external reserves have risen by $1.88 billion, reaching $34.66 billion as of July 4, 2024, marking a 13-month high. This increase comes despite fluctuations within the $33 billion range from July to December 2023, following the introduction of the FX unification policy in June 2023.
The nation’s reserves have continued to grow in July, hitting multiple highs and culminating in the highest level in the past year.
