Customize Consent Preferences

We use cookies to help you navigate efficiently and perform certain functions. You will find detailed information about all cookies under each consent category below.

The cookies that are categorized as "Necessary" are stored on your browser as they are essential for enabling the basic functionalities of the site. ... 

Always Active

Necessary cookies are required to enable the basic features of this site, such as providing secure log-in or adjusting your consent preferences. These cookies do not store any personally identifiable data.

No cookies to display.

Functional cookies help perform certain functionalities like sharing the content of the website on social media platforms, collecting feedback, and other third-party features.

No cookies to display.

Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics such as the number of visitors, bounce rate, traffic source, etc.

No cookies to display.

Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.

No cookies to display.

Advertisement cookies are used to provide visitors with customized advertisements based on the pages you visited previously and to analyze the effectiveness of the ad campaigns.

No cookies to display.

Customs to Use Exchange Rate on Date of ‘Form M’ for Import Duty Assessment – CBN

CBN Directs Customs: Use Form M Exchange Rate for Import Duty Calculation.

 

In a recent directive, the Central Bank of Nigeria (CBN) has instructed the Nigerian Customs Service (NCS) to adopt the foreign exchange (FX) closing rate on the date of ‘Form M’ submission by importers for the assessment of import duties and clearance of goods. This proactive step is aimed at addressing the challenges posed by the volatile foreign exchange market and the frequent updates on customs duties rates.

According to Hassan Mahmud, Director of the CBN’s Trade and Exchange Department, the fluctuating customs duties rates have been disrupting pricing structures, leading to irregular increases in the final cost of goods in the market.

The CBN emphasized the importance of stability and predictability in import duty assessments, stating, “Effective from February 26, 2024, the closing rate on the date of Form M submission will be used for the assessment of goods and services, superseding the previous requirement outlined in Memorandum 9, J (2) of the Central Bank of Nigeria Foreign Exchange Manual (Revised Edition) 2018.”

This measure aims to provide clarity and certainty for both the Nigeria Customs Service and importers, enabling them to plan effectively and mitigate uncertainties arising from fluctuating exchange rates during the importation and clearance process.

Background Context: The Nigeria Customs Service, in collaboration with the CBN, has been regularly adjusting exchange rates for import duties and clearance of goods on its website since the unification of the forex market in June. This adjustment has been occurring almost twice weekly since the beginning of the year.

READ ALSO: Top 10 Leading Countries in Foreign Investment into Nigeria

In response to concerns raised by the public and the business community, the Comptroller-General of the NCS clarified that the service follows the directives of the CBN regarding exchange rate adjustments.

The most recent adjustment reported by Nairametrics saw the exchange rate increase from N1537.07 to N1605.82 per USD.

Insights: The CBN unified the foreign exchange market in June 2023, resulting in the depreciation of the naira by over 100% on the official window. This, coupled with other fiscal policy measures such as the removal of fuel subsidies, contributed to a 28-year high in inflation, reaching 29.90% as of January. Notably, food and transportation sectors experienced significant inflation, with food inflation at 35.4% in January.

Stella
Stella

Stella Oluwaseun is a personal finance enthusiast and blogger dedicated to helping readers achieve financial independence. With a passion for budgeting, saving, and smart investing, Stella Oluwaseun shares practical tips and insights to simplify money management and grow wealth. When not writing, I enjoy exploring new ways to live a financially mindful and fulfilling life.

Articles: 355

Leave a Reply

Your email address will not be published. Required fields are marked *