Nigerian Customs recently upped the import duty exchange rate to N1,441/$1, marking a significant hike from the previous rate. This shift has sent shockwaves through businesses, prompting concerns about increased costs and potential economic repercussions.
The Nigerian Customs Service has elevated the exchange rate for collecting import duties to N1,441.53 per US dollar, marking a significant increase from the previous rate of N1,373.64/$ earlier this month. This surge surpasses the official market rate of the naira, which closed at N1,402.67/$ on May 2, 2024, while the parallel market stood at N1,380/$.
Over the past fortnight, the Nigerian naira has experienced notable depreciation, contrasting with its robust performance in March, where it was hailed as the world's best-performing currency by Goldman Sachs. However, the currency opened May on a downward trajectory, declining by 0.74% to N1,360/$ compared to April's last trading day.
Liquidity concerns have arisen alongside the naira's weakening, with the Central Bank of Nigeria (CBN) intervening in the foreign exchange market almost two weeks ago, selling dollars to Bureau De Change (BDC) operators below the official rate.
Despite a quieter April for the CBN, the naira's depreciation poses challenges to the bank's efforts to stabilize the exchange rate and curb inflation. Governor Yemi Cardoso acknowledged the impact of the elevated exchange rate on inflation, a concern echoed by the Centre for the Promotion of Private Enterprise (CPPE).
CPPE urged the CBN to tackle inflation and enhance stability, advocating for a uniform exchange rate to provide certainty in the trade sector. The center proposed a rate of N1000/$ for import duties, emphasizing the necessity of a conducive environment for business planning and operations.
