Customs Alters FX Rate to N783/$ As Importers Brace for Higher Import Duty Tariffs

The Nigeria Customs Service (NCS) has modified the exchange rate for cargo clearing at the port to N783.174/$, as disclosed on the Customs’ official website.

This adjustment comes five months after the Central Bank of Nigeria initiated the floating foreign exchange rate regime.

Importers using the nation’s seaports will now face higher import duty tariffs, as N12.294 has been added to every dollar in the total value used for calculating import duty.

This marks the second exchange rate adjustment in the port industry since the implementation of the floating foreign exchange rate policy.

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Tony Anakebe, a Licensed Customs Agent, expressed surprise at the delayed adjustment, considering the volatility of the naira at the foreign exchange rate. He anticipates an automatic increase in import duty payable by importers and their clearing agents.

This adjustment is expected to impact the market prices of goods, leading to higher Customs tariffs. Anakebe further stated that the development would contribute to the upward trend in inflation, as importers are likely to set prices for finished goods to cover the increased costs.

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Bayo Tunde, another clearing agent, voiced concerns about the rising costs imposed on importers and consumers due to high Customs tariffs. He emphasized the impact of the adjustment on market prices and the challenges faced by Nigerians grappling with high goods prices and increased FX sourcing costs.

The adjustment has already taken effect at the port, with Tunde witnessing its impact firsthand during the clearance of a container at one of the ports in Lagos.

This move follows the Central Bank of Nigeria’s directive to all ministries, departments, and agencies of government, including the Nigeria Customs Service, to implement the floating naira policy a few months ago.

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