Market News

By Steve Agbotas

The exchange rate used by the Nigeria Customs Service (NCS) to calculate import duty has again increased to N1618.732/$1 following a further depreciation of the naira against the US dollar.

According to the latest figure posted on the NCS exchange rate portal on Sunday, this represents an increase of N18 from the previous rate of N1600.32. This increase comes amidst the naira depreciating by 6.43 per cent in the month of July.

However, data from FMDQ shows that the naira reached a four-month low in July, fluctuating between N1,500.32 and N1,621.12, surpassing the N1,600 mark.

Daily Sun learnt that this depreciation happened despite the Central Bank of Nigeria’s (CBN) attempts to address the official market’s liquidity issues through dollar sales.

In July, the CBN conducted at least three foreign exchange (FX) sales to authorised dealers and one sale to Bureau de Change (BDC) operators as the naira faced significant pressure.

Speaking with Daily Sun on the development, a clearing agent, Oladimeji Majekodunmi, said that the cost of clearing a container at the port has increased significantly.

“The moment CBN increases, Customs don’t have a choice than to adjust the new duty in their system. Now to clear a 40ft container of food items, it cost nothing less than N20 million and above. This was far below the amount we used to clear same consignment before. You know how many times CBN has increased the rate in the last few months.

“The cargo coming into the country has dropped significantly to about 30 per cent. Come to the port now, you will see how empty it is. Many importers have gon bankrupt. The whole situation is so precarious,” he said.

He said that there is need for Central Bank to give importers a stable exchange rate, saying fluctuations of exchange rate is not good for the economy.

Meanwhile, President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Lucky Amiwero, has urged the federal government, through the Central Bank of Nigeria (CBN), to implement a special exchange rate for calculating import duties.

Amiwero said in his petition letter

Amiwero emphasised that a stable and manageable exchange rate for import duties would stimulate