Nigeria Nigeria Customs Service: Cargo Clearance FX Rate Plunges Below Market Prices

Recent updates from the Nigeria Customs Service (NCS) reveal a surprising development in the foreign exchange market, as the exchange rate for cargo clearance has dropped to N1,164.84/$, falling below both official and parallel market rates.

This significant shift, reported by Nairametrics, comes amidst a backdrop of fluctuating exchange rates and naira depreciation over the past week.


The decline in the Customs FX rate follows a notable increase just two days prior, when the rate for Customs' import duties soared to N1,277.52/$. The recent depreciation of the naira has further complicated the exchange rate landscape, with contrasting figures reported on both official and parallel markets.

While the unofficial market closed at N1,280 to the dollar on Saturday, marking an 8.7% gain compared to the previous day's rate of N1,400, the official window saw the naira close at N1,339.23/$, indicating a depreciation from the previous day's value.

The recent fluctuations in the exchange rate signal a departure from the naira's previous stability, which garnered accolades as the best-performing currency globally between March and April.

Despite interventions by the Central Bank of Nigeria (CBN), including selling dollars to Bureau de Change operators below the official market rate, exchange rate stability remains elusive.

The CBN's efforts to stabilize the exchange rate have been ongoing since the beginning of the year, with various policy measures aimed at curbing speculation and managing volatility.

However, despite these interventions, the frequent updates on the Customs FX rate underscore the challenges of maintaining stability in Nigeria's foreign exchange market.

As stakeholders navigate the evolving exchange rate landscape, attention remains focused on the implications of the Customs FX rate's deviation from official and parallel market prices for importers, exporters, and the broader economy.