Customs says CBN-approved forex rates for import duty has caused disruptions

The Nigeria Customs Service (NCS) revealed that the service encountered major challenges with the fluctuations of the Central Bank of Nigeria (CBN) exchange rate regime for import duty, which it says has disrupted its activities.

This was made known by the Comptroller General of Customs, Adewale Adeniyi, while speaking during a press briefing on Wednesday, April 3, 2024, in Abuja, where he noted that 13 different spot rates applied in March.

Adeniyi said that the repercussions of these fluctuating rates have sent concerning signals to stakeholders, affecting and disrupting activities.

28 rates directed by CBN in the last quarter

  • Adeniyi in his address to journalists said, “In the last quarter, a total of 28 rates were directed by the CBN, ranging from NGN 951.94 per USD 1 in January 2024 to a peak of NGN 1,662.35 per USD 1 in February 2024. While a singular exchange rate of NGN951.94 per USD 1 was maintained in January, February witnessed 15 different spot rates ranging from NGN 951.94 per USD 1 to NGN 1,662.35 per USD 1.
  • “March saw a total of 13 different spot rates applied, ranging from NGN 1,303.84 to NGN 1,630.16. These fluctuations resulted in an average applied exchange rate of NGN 1,314.03 per USD 1 in the clearance of Customs goods during the quarter.
  • “The repercussions of these fluctuating rates have sent concerning signals to our stakeholders, affecting and disrupting activities.”

Adeniyi, however, expressed delight in the relative stability in the past days, adding that the Service, with the support of the Minister of Finance, Wale Edun, has initiated periodic consultations with the apex bank to mitigate the potential impact of exchange rate fluctuations on import activities.”

Collects N1.3 trillion revenue in Q1 2024

Meanwhile, Adeniyi at the press briefing disclosed the service generated a total of N1.3 trillion as revenue for the first quarter (Q1) of 2024, representing a 122.35% increase over the corresponding time of 2023 when the service collected N606.1billion.

He attributed the feat to the dedication of the officers and cooperation with stakeholders, besides the suppression of smuggling and accelerated trade facilitation.

  • He said, “In the first quarter of 2024, the NCS demonstrated remarkable performance in revenue collection. Total revenue collected during this period amounted to NGN 1,347,675,608,972.75. The collection for the first quarter represents a substantial increase of 122.35% compared to the same period last year, where NGN 606,119,935,146.67.
  • “When compared to the Federal government’s annual revenue target of NGN 5.07 trillion for the NCS to collect in 2024, the target translates to a monthly revenue target of NGN 423 billion.”

Adeniyi also a total of N1.6 billion was generated through its electronic auction platform launched in the first quarter of the year.

Follow us for Breaking News and Market Intelligence.
play store banner
app store banner
whatsapp banner
telegram banner