In a significant move effective from February 26, 2024, the Central Bank of Nigeria (CBN) has instructed the Nigerian Customs Service (NCS) to base import duty calculations on the foreign exchange (FX) closing rate on the day importers submit 'Form M' for clearing goods. This decision aims to bring stability to the market, prevent price fluctuations, and reduce uncertainties caused by exchange rate changes.
Hassan Mahmud, the CBN's Director of Trade and Exchange Department, highlighted the need to address irregular changes in customs duty rates that have disrupted pricing structures. According to Mahmud, the new approach will help customs and importers plan better by using the FX rate on the date of opening 'Form M' for duty assessments, valid until the completion of importation and goods clearance.
The change, effective immediately, replaces the previous requirement outlined in the Central Bank of Nigeria Foreign Exchange Manual (Revised Edition) 2018. The CBN believes this adjustment will create a more predictable environment for businesses, inspire confidence, and attract investment for Nigeria's economic development.
This shift in import duty calculation represents a significant departure from the old method and is expected to impact businesses and consumers. As stakeholders analyze the change, the story unfolds against the backdrop of ongoing efforts to reshape Nigeria's economic landscape and create a more stable trade and investment environment.
