Nigerian Customs adjusts FX rates for tariffs, duties from ₦770/$ to ₦783/$

The Nigerian Customs Service, (NCS) has adjusted the foreign exchange rate for its tariffs and duties by 1.59% from ₦770.88/$ to ₦783.174/$.

The rate change which was updated on the single window trade portal of the federal government has also affected the general amount normally paid in clearing goods from the ports.

This is the second exchange rate adjustment the port industry has witnessed five months after the NCS started the implementation of the floating foreign exchange rate regime by the Central Bank of Nigeria. (CBN).

The change in NCS FX rates came just after President Bola Tinubu declared his government’s decision to unify the exchange rate, replacing the previous multiple exchange rate regime implemented during the past administration.

When the new exchange rate came into force on June 26, 2023, the NCS upwardly adjusted import duties and levies from ₦422.30/$1 to ₦589/$1 thus increasing the amount paid by Importers for the clearance of their cargoes at the nation’s seaports by 39.5% for every dollar.

With the recently announced increment, importers that bring goods through Nigeria’s seaports will be paying a higher fee as import duty tariffs as the sum of ₦12.294 will now be added to any one dollar of the total value used in calculating import duty.

The increase in the price of goods will be a direct effect of the FX rate increment as importers will add additional charges to the cost of the goods in order to recoup their money.

Although Nigerian cargo importers are already lamenting the low level of importation at the ports which has dropped drastically, the prices of imported goods such as used vehicles and electronics, among several others, are set to increase in value in the coming weeks due to the rate increment.