Prices of imported goods to increase as FG adjusts customs exchange rate

The Federal Government of Nigeria has announced adjustments to the Nigerian Customs Service (NCS) Exchange Rate calculations for import duties.

This is coming just five months after the CBN floated the Naira. According to a report by the Guardian, the Federal Government yesterday adjusted the Nigerian Customs Service (NCS) Exchange Rate calculations of import duties from N770.88/$ to N783.174/$.

The changes were officially reflected on the NCS portal, just as stakeholders in the import and export value chain said the new rates would guide importers and clearing agents as they make quotations for new jobs and capture for payments.

The adjustment is in line with the CBN’s recent decision to authorise banks to sell foreign exchange at market-determined rates. The transition towards a single exchange rate regime, echoing President Bola Tinubu’s commitment, was aimed at fostering economic stability.

However, this move, coupled with prevailing economic challenges and fiscal policy measures, has resulted in a 70% drop in importation, contributing to higher costs for clearing cargoes in Nigeria compared to other African countries.

Addressing the concerns over congestion at ports, the Minister of Marine and Blue Economy, Adegboyega Oyetola, stated the issue of abandoned and overtime cargoes during a recent meeting with port stakeholders. Some cargoes have lingered at ports for over a decade due to clearing bottlenecks, prompting a necessity for decongestion efforts. The minister said cargoes meant for Nigeria are taken to ports of Ghana, Togo, Cameroon and other neighbouring countries due to their lower cost of clearing goods. [Swipe left to continue to read]