The current exchange rate for customs import duties and cargo clearance payment is higher than the official foreign exchange market rate of the Naira and the $. Customs exchange rate portal showed that the adjusted exchange rate for cargo clearance stood at N1,330.36/$ while the Naira closed at N1,278 to $ on the official market and even much stronger on the parallel market at N1,250/$1. The exchange rate for customs import duties assessment had earlier been increased from N1,303.85/$1 to the current figure. This indicates an increase of N26.52 since the 31st of March 2024.
Starting in mid-March, the local currency has appreciated against the U.S. dollar, reducing the foreign exchange (FX) rate used for assessing customs import duties. This rate decreased from a high of N1,61 on March 16 to its present value, marking a fall of N281.92 or 17.46% in just two weeks. Throughout March, the Naira experienced a significant appreciation, gaining approximately 21.8 per cent, the most substantial increase in five years. The recent rise in the Naira’s value is largely due to the reforms by the central bank, including a notable interest rate increase of 600 basis points over two months. As a result, the Monetary Policy Rate (MPR) surged from 18.75% at the start of the year to 24.75 per cent by March’s end.
The central bank has been proactive in regulating the activities of Bureau De Change (BDC) operators to curb speculation, proposing increased share capital requirements of N2billion for tier-1 licenses and N500 million for Tier-2 licenses. Moreover, the bank has initiated the sale of foreign exchange to BDCs at a set rate, enforcing a maximum selling price, and has revoked the licenses of over 4,000 BDC operators nationwide in a significant regulatory crackdown.
