Customs FX rate for import duties rises to N1,530/$

The Nigeria Customs Service (NCS) has adjusted the foreign exchange (FX) rate for import duties to N1,530 per dollar.

This represents a 6.13 percent increase compared to the N1,441.58 adopted on May 6.

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

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

TheCable observed that the NCS rate is marginally lower than the official FX rate of N1,533/$ recorded at the close of trade on May 16.

On May 15, the Nigerian currency depreciated to N1,550 against the dollar at the parallel section of the FX market.

The parallel FX rate declined by 1.95 percent compared to the N1,520/$ reported on May 13.

On May 16, Muda Yusuf, director-general, Centre for Promotion of Private Enterprise (CPPE), advised NCS to set a quarterly exchange rate between N800/$ and N1000/$ for import duties assessment.

Yusuf said the continuous fluctuation affects inflation.

He said setting a fixed rate was necessary to reduce the pass-through effect of heightening trade costs on inflation.