Why CBN crash dollars for Customs import duty as the naira depreciates

• The Central Bank of Nigeria (CBN) has slashed the Customs exchange rates for cargo clearance
• The CBN adjusted the Customs FX rates to N1,564.929 from N1,573.25 it pegged it the previous time
• The rate adjustment by CBN came amid the crash of the Nigerian currency, the naira, in the official market

Legit.ng’s Pascal Oparada has reported on tech, energy, stocks, investment and the economy for over a decade.

The Central Bank of Nigeria (CBN) has slashed the foreign exchange rate for cargo clearance in Nigeria’s ports.

The development came notwithstanding the crash of the Nigerian currency, the naira, in the official market on Friday, August 30, 2024.

Comptroller of Customs, Adewale Adeniyi Credit: NCS
Source: Facebook

Naira crashes in the FX market

Data from the FMDQ Exchange shows that the naira crashed to N1,598.55 per dollar compared to the N1,593.93 traded on Thursday, August 29, 2024.

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The foreign exchange turnover at the Nigerian FX market rose 11% to $172.8 million, up from $155.52 million recorded the previous day.

Consequently, the margin between the parallel market and the NAFEM rate widened to N26.44 per dollar from N21.07 on Thursday.

The naira depreciated to N1,625 per dollar in the parallel market from N1,615 per dollar on Thursday.

CBN adjusts Customs rates

Meanwhile, information from the Nigeria Customs Service Trade portal shows that the apex bank crashed the foreign exchange rate for cargo clearance to N1,564.292 against N1,578.26 per dollar.

The rate crash came amid advice from Muda Yusuf, the CEO of the Centre for the Promotion of Private Enterprise(CPPE), urging the CBN to change its policy on the Customs import duty rate to clear goods at ports. 

Yusuf, the CEO of CPPE, told Legit.ng that the CBN must review its policy and peg the exchange rate at N1,000/$. 

He believes a significant policy adjustment is necessary to complement current measures to address the country's ongoing cost-of-living crisis.

Largest container terminal open in Onne

Legit.ng earlier reported that businesses owned by Igbos and other southerners are set to receive a boost as President Bola Tinubu is set to officially commission the newly upgraded West Africa Container Terminal (WACT) in Onne, Rivers State.

The facility, operated by APM Terminals, is Nigeria and West Africa’s largest and most efficient container terminal outside Lagos, representing an essential advancement in Nigeria’s port infrastructure.

The N178 billion project, initiated in 2021, shows the commitment of APM Terminal and its partners to boost Nigeria’s maritime prowess.

Source: Legit.ng