CBN asks Customs to adopt same FX rate for importation and clearance of goods

The Central Bank of Nigeria (CBN) has directed the Nigerian Customs Service (NCS) to adopt the same forex rate for importation and clearance of goods in the country.

The apex bank gave the directive in a circular issued on Friday by its Director of Trade and Exchange Department, Hassan Mahmud.

It asked the Customs to adopt the forex closing rate on the date of Form M submitted by importers for the clearance of goods and import duty assessment.

The CBN lamented that constant changes in Customs duties rates have led to pricing irregularities, causing unpredictable increases in the final cost of goods in the market.

The apex bank has increased the Customs import duty rate at least five times this year.

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The circular read: “To this effect, the Central Bank of Nigeria wishes to advise the Nigeria Customs Service and other related parties to adopt the FX rate on the date of opening the Form M for importation of goods, as the FX rate to be used for import duty assessment. This rate remains valid until the date of termination of the importation and clearance of goods by the importers.

“This would enable the Nigeria Customs Service and the importers to effectively plan appropriately and reduce uncertainties around varying exchange rates in determining revenue, or cost structure respectively.

“Therefore, effective 26th February 2024, the closing rate on the date of opening of Form M for importation of goods and services would be the rate that would apply for assessment of goods and services. This supersedes the requirement of Memorandum 9, J (2) of the Central Bank of Nigeria Foreign Exchange Manual (Revised Edition) 2018.”

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