Nigeria Customs Service Adjusts Exchange Rate, Import Costs Soar
In a move set to impact the cost of imported goods, the Nigeria Customs Service (NCS) has once again revised the foreign exchange rate for cargo clearing at Nigerian ports.
According to data from the federal government’s single-window trade portal, importers will now face a rate of N1,356.88 per dollar, marking a significant 29.84% or N404.94 increase compared to the previous rate of N951.94/$.
This marks the fifth exchange rate adjustment witnessed by the port industry since June 2023. Adewale Adeniyi, the Comptroller General of the Nigeria Customs Service, clarified in an earlier report that these fluctuations are not a result of the service’s actions.
He emphasized that the NCS doesn’t determine rates; rather, the changes align with the Central Bank of Nigeria’s (CBN) floating foreign exchange rate regime.
Adeniyi stated, “What we do is just to update our systems. It is not about Nigeria Customs reducing or increasing the exchange rate. We have nothing to do with whether the exchange rate goes up or comes down. It is not us; we follow what is proscribed for us by the regulatory authority for monetary affairs, which is the Central Bank of Nigeria.”
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The adjustment in the exchange rate will impact importers, leading to higher import duty tariffs at the nation’s seaports. Consequently, items like used vehicles, mobile phones, and electronics are expected to see an increase in value in the coming weeks.
In response to concerns about the exchange rate, Ben Akabueze, the director-general of the federation’s budget office, assured that the Naira is anticipated to strengthen in the foreign exchange market in 2024. Speaking in an interview with Channels TV on December 26, 2023, Akabueze attributed this optimism to the country’s expectations of an increase in dollar supply.
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He highlighted that the reforms initiated in 2023 are anticipated to yield positive results in 2024, maintaining a positive stance on the exchange rate.
As importers grapple with higher costs, the impact of these exchange rate adjustments on the broader economy remains a key concern, with stakeholders closely monitoring the evolving situation.
