The Central Bank of Nigeria (CBN) has raised the exchange rate from N1,600.32 to N1,618.732 for the purpose of clearing goods at the country’s seaports and airports.
The naira depreciated by 6.43 percent in July, coinciding with this adjustment, which is the largest pace since March 2024. It is anticipated that the hike will put importers under even more pressure because it drives up import prices and fuels inflation. Several foreign exchange sales have been part of the CBN’s efforts to stabilize the naira, but market difficulties still exist.
The exchange rate climbed by N18 from the previous rate of N1600.32 to the USD, according to the Nigeria commerce Hub, the official single window for commerce operated by the federal government.
However, information was acquired suggesting the depreciation occurred in spite of the CBN’s efforts to use dollar sales to alleviate the official market’s liquidity problems.
Because the naira was under a lot of pressure in July, the CBN sold foreign exchange (FX) to licensed dealers at least three times and to Bureau de Change (BDC) operators once.
Oladimeji Majekodunmi, a clearing agency, stated that the cost of clearing containers at the ports will rise significantly due to the increase in exchange rates.
Customs is forced to modify the new charge in their system as soon as CBN rises. It now costs N20 million or more to remove a 40-foot container filled with food. This was far less than what we had previously used to clear the same shipment. You are aware of the number of times in the past few months that CBN has raised the rate.
“The amount of freight entering the nation has decreased dramatically to roughly 30%. Visit the port right now to witness how barren and arid the entire area is.
Some agents are so poor that they cannot afford to send their families to the port on their own. He bemoaned, “The situation is dangerous and importers have gone bankrupt.
He stated that the Central Bank must provide importers with a steady currency rate since changes in exchange rates are detrimental to the economy.
Concurrently, Lucky Amiwero, national president of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), encouraged the federal government to use the CBN to establish a unique exchange rate for determining import duties.
A stable and controlled currency rate for import duties, according to Amiwero, would promote economic expansion and benefit the majority of Nigerians.
However, he voiced serious concerns about the way customs duty calculations are currently done, which uses variable currency rates. He maintained that this strategy has significantly increased the cost of items and driven up the price of food in Nigerian markets.
