Adopt Same FX Rate from Importation to Clearance, CBN Tells Customs

The Central Bank of Nigeria (CBN) has asked the Nigerian Customs Service (NCS) to adopt the same forex rate from the importation of goods to their clearance in the country.

The directive was contained in a circular on Friday by the apex bank’s Director of Trade and Exchange Department, Hassan Mahmud, saying the constant changes in customs duty rates have led to pricing irregularities, resulting in unpredictable increases in the final cost of goods in the market.

It instructed the NCS to adopt the FX closing rate on the date of Form M submission by importers for the clearance of goods and import duty assessment.

The directive is aimed at curbing the disruptions caused by frequent updates on the customs website regarding forex market liberalization.

“To this effect, the Central Bank of Nigeria wishes to advise the Nigeria Customs Service and other related parties to adopt the FX rate on the date of opening the Form M for importation of goods as the FX rate to be used for import duty assessment. This rate remains valid until the date of termination of the importation and clearance of goods by the importers,” the circular read.

“This would enable the Nigeria Customs Service and the importers to effectively plan appropriately and reduce uncertainties around varying exchange rates in determining revenue or cost structure, respectively.

“Therefore, effective February 26, 2024, the closing rate on the date of opening of Form M for the importation of goods and services would be the rate that would apply for the assessment of goods and services.

This supersedes the requirement of Memorandum 9, J (2) of the Central Bank of Nigeria Foreign Exchange Manual (Revised Edition) 2018.”