Cost of cars, other imported items to rise as Customs announces new FX rates for duties collections

The Nigeria Customs Service has modified its tariffs and duties to align with changes in the foreign exchange markets.

The move is coming a few days after the service announced changes in the exchange rates for goods’ clearance at various Nigerian ports.

Customs adds N26.15 to the Cost of duties

The revised rates are now available on the Nigerian government’s single-window trade portal.

The information on the trade portal says that the Customs exchange rate has increased by 3.43%, which is about N26.15, to reach N783.174 per dollar as of Sunday, November 12, 2023.

The development marks an increase from the previous rate of N757.023 per dollar recorded last week.

The service imposed duties in Nigeria chargeable on imported goods, among other levies.

According to reports, different items are subject to varying rates, ranging from 5% to 35%, and are determined based on the current harmonized commodity and coding system (HS code).

The naira appreciates against the dollar

The naira rebounded against the dollar on Friday, November 10, 2023, in the official NAFEM window to trade at N78014 per dollar, representing a 27.77% increase.

However, the naira fell by 3.54% in the parallel market at N1,130 per dollar, while the peer-to-peer window traded at about N1,100 per dollar.

The apex bank, the Central Bank of Nigeria (CBN), reversed the restriction on 43 items from accessing Forex at the official window.

43 items, causing scarcity of Forex

Analysts believe that lifting the restriction piled pressure on the forex markets, causing an upsurge in dollar demands.

The local currency has reportedly lost about 40% of its value since the CBN began the Forex reforms on June 14, 2023, with the World Bank naming the naira one of the worst-performing currencies in Africa.

Nigeria has battled acute Forex scarcity, culminating in about %10 billion backlogs in forward payments.

But a reprieve came as the Nigerian government released about $7 billion in early November to clear some of the backlogs. This resulted in the naira rebounding in the parallel market, where it crashed to N1,310 per dollar.

The backlogs eroded confidence in the Forex markets, with foreign investors needing help to pull their investments estimated at $7 billion.

Customs issues fresh orders to private jet owners in Nigeria Legit.ng earlier reported that according to the Nigeria Customs Service (NCS), about 30 private aircraft owners who have undergone the verification exercise are liable to pay the required duties.

During the exercise in Abuja, Channels TV reports, NCS's spokesman, Joseph Attah, made this revelation on Monday, August 2.

Attah explained that Nigerian Tribune also reported that some of these aircraft for which the duties should be paid to the federal government were shipped into the country by the Temporary Importation Agreement (TIA), a bond that allows them to bring the jets without payment.