The Nigerian Customs Service (NCS) has been directed by the Central Bank of Nigeria to establish a foreign exchange closing rate on the day that importers submit their “Form M” for the purpose of clearing their products and assessing import duties, amidst multiple hikes in customs exchange rates.

This was revealed by the CBN in a statement on Friday that was signed by Hassan Mahmud, the department’s director of trade and exchange.

The pricing system has been upset by the frequent changes in the customs taxes rate, according to CBN, which has resulted in erratic increases in the market’s final cost of items.

The recent action taken by the apex bank is intended to address the fluctuations in the foreign exchange market and the regular updates on the customs website.

It further stated that Nigerian customs should begin implementing the new guidelines on February 26, 2024.

In light of this, the Central Bank of Nigeria desires to recommend that the FX rate used for assessing import duties be adopted by the Nigeria Customs Service and other relevant parties on the day that the Form M for goods importation is opened. This rate is in effect until the importers clear the items and the importation is terminated.

This will lessen uncertainty surrounding fluctuating currency rates in determining income or cost structure, respectively, and allow the Nigeria Customs Service and the importers to plan properly.

As a result, the rate that would be used to assess goods and services would be the closing rate on the date that Form M for the importation of goods and services was opened, effective February 26, 2024. Memorandum 9, J (2) of the Central Bank of Nigeria Foreign Exchange Manual (Revised Edition) 2018 is superseded by this.

Remember that the Central Bank of Nigeria has increased the exchange rate for cargo clearance at least six times since January of this year. The most recent being the rise in the currency rate to N1,605 per US dollar for cargo clearance.

This development occurs in the midst of Nigeria’s exorbitant prices for goods and services.

In its most recent consumer price index, the National Bureau of Statistics revealed that headline inflation for the month of January was 29.90 percent.