The Federal Government of Nigeria has announced adjustments to the Nigerian Customs Service (NCS) Exchange Rate calculations for import duties.
The decision comes merely five months after the Central Bank of Nigeria (CBN) introduced a floating exchange rate for the Naira.
As reported by The Guardian, the Federal Government officially revised the Nigerian Customs Service (NCS) Exchange Rate calculations for import duties, increasing it from N770.88/$ to N783.174/$.
These alterations have been promptly updated on the NCS portal, and they are set to impact various stakeholders involved in the import and export value chain. Importers and clearing agents will now rely on the new rates when providing quotations for new jobs and processing payments.
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This move aligns with the CBN’s recent authorization for banks to sell foreign exchange at market-determined rates, marking a significant step towards establishing a single exchange rate regime.
Nevertheless, these adjustments, combined with existing economic challenges and fiscal policy measures, have resulted in a staggering 70% reduction in importation.
This, in turn, has led to increased costs associated with clearing cargoes in Nigeria, making it more expensive compared to other African nations.
Addressing concerns over congestion at ports, the Minister of Marine and Blue Economy, Adegboyega Oyetola, recently engaged with port stakeholders.
During this meeting, he acknowledged the persisting issue of abandoned and overtime cargoes, some of which have been languishing at ports for over a decade due to clearing bottlenecks. This situation has necessitated urgent efforts to decongest the ports.
Oyetola revealed that cargoes meant for Nigeria are now diverted to ports in Ghana, Togo, Cameroon, and neighboring countries due to the lower costs associated with clearing goods in those locations.