CBN reviews FX rate on import duties to N1,544.081/$1

The Central Bank of Nigeria (CBN) yesterday adjusted the foreign exchange (FX) rate on Customs import duties to N1,544.081 to a dollar, from N1,630.159 to a dollar, representing a 5.3 percent reduction. Effectively, importers opening Form M for trade yesterday would benefit from a lower import regime. The review came barely 10 days after the central bank advised the Nigeria Customs Service (NCS) and other related parties to adopt the closing FX rate on the date of opening Form M for the importation of goods, as the rate to be used for import duty assessment going forward. However, the central bank added that effective February 26, the new rate would remain valid until the date of termination of the importation and clearance of goods by importers. The bank disclosed this in a circular dated February 23, 2024, titled, “Foreign Exchange Rates for Import Duty Assessment”, which was signed by CBN Director, Trade and Exchange Department, Dr. Hassan Mahmoud, and addressed to all authorized dealers, NCS, and the public. The apex bank clarified that the new directive would enable the customs and importers to effectively plan appropriately and reduce the uncertainties around varying daily exchange rates in determining their revenue or cost structure, respectively.