In response to stakeholders’ rejection of the N1,356.883 exchange rate, the Central Bank of Nigeria (CBN) made a swift adjustment to the exchange rate on the Customs platform, settling at N1,413.62/$1.
This move occurred less than 24 hours after the CBN had increased the rate from N951.941/$1 in December to N1,356.883/$1 on February 2nd, 2023.
The series of adjustments began on June 24, 2023, when the CBN raised the exchange rate from N422.30/$1 to N589/$1, followed by another adjustment on July 6, 2023, to N770.88/$1. Subsequent changes occurred on November 14, 2023 (N783.174/$1) and December 7, 2023 (N951.941/$1). On February 2, 2024, the rate surged to N1,356.883/$1, only to be further revised to N1,413.62/$1.
Maritime experts predict that the heightened exchange rate will result in increased costs for Nigerian importers clearing goods at the port, as import duty is linked to the dollar. This latest adjustment marks a tripling of import duty on goods within seven months under the Bola Ahmed Tinubu government.
Importers and Customs brokers vehemently opposed the initial 43 percent increase in the Customs import duty rate, expressing concerns over the compounded impact of the exchange rate hike. Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), emphasized that the government’s policies are exacerbating the challenges faced by importers, potentially leading to reduced trade due to soaring import costs.
President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), Amiwero, criticized the government for the devastating effects on businesses, job losses, and the potential for a crisis. He urged government intervention to stabilize the foreign exchange market and alleviate the burden on importers.
Ikemefuna Chukwu, a prominent clearing agent, highlighted the practical implications for clearing agents, stating that the wide differential in rates might lead to cargo abandonment at seaports. He expressed hope for a future decrease in the exchange rate, emphasizing the need for government intervention to stabilize the market and support importers during these challenging times.
