'It is difficult' — Expert speaks as customs changes Dollar rate to clear goods at ports again

The Central Bank of Nigeria (CBN) has adjusted the Nigeria Customs import duty exchange rate again.

The latest federal government trade portal data shows that the exchange rate when submitting Form M to clear goods at the port on Thursday, May 2, 2024, will now be N1,329.705 to a dollar.

The latest rate is a slight reduction from the previous rate of 1,373.646/$ quoted on Wednesday, May 1, 2024.

Form M is a mandatory online documentation process required to import goods into Nigeria.

Expert raises concerns on new exchange rate

Reacting to the continuous changes in the Customs duty exchange rate, Muda Yusuf, the CEO of the Centre for the Promotion of Private Enterprise, told Legit.ng that the frequent changes had become a huge burden on the business community.

Yusuf noted that the situation has caused cargo clearing costs to be very unstable, making inflation worse and increasing investment risk, especially in the real economy.

He added that the frequent changes were detrimental to production, planning, and other real-sector activities.

His words:

"In the first 3 months, the rate for customs duty changed 28 times. In April, it changed almost 10 times or even more.

"By May 1, 2024, the rate increased to N1,373.65 per dollar from less than N1,200 per dollar just a few days earlier.

"These constant changes make it really hard for investors to make plans. This situation brings a new level of uncertainty and unpredictability to international trade.

“Investment risk has become elevated, planning has become difficult, risk management has become challenging, and investors’ confidence is being weakened."

The CPPE boss proposed that CBN set N1,000 per dollar on the customs duty exchange rate.