TheCable

The Nigeria Customs Service (NCS) has adjusted the foreign exchange (FX) rate for import duties to N1,441.58 per dollar.

This represents a 4.94 percent increase compared to the N1,373.64/$ adopted on May 1.

The rate adopted by customs was observed on Friday on the federal government’s single window trade portal.

The customs typically adopts FX rates recommended by the Central Bank of Nigeria (CBN) for import duties based on trading activities in the official FX market.

It was observed that the NCS rate is higher than the official FX rate of N1,402/$ recorded on May 2, and N1,390 traded on May 1.

According to CBN on February 23, the customs and other related parties must adopt the closing rate in the official window for import duty.

The apex bank said the FX rate at the point of importation should be used for import duty assessment until the termination date and clearance are finalised.

Speaking on the frequent changes in the customs FX rate for import duties on May 1, Muda Yusuf, chief executive officer (CEO) of the Centre for the Promotion of Private Enterprise (CPPE), said such movement is detrimental to the economy.

He said the economy’s real sector activities — such as planning, production, and other activities — are negatively impacted by the frequent changes.