Navigating the Economic Waves: CBN’s Currency Shifts Impact Import Duties and Consumer Pockets

In a dynamic turn of events, the Central Bank of Nigeria, under President Bola Ahmed Tinubu, has executed the third increase in Customs duties exchange rates for 2024. As reported by DAILY POST, import duties have been adjusted upward to N1,417.63 per US dollar from the previous N1,413.62.

This marks an incremental increase of N4.015 and a percentage surge of 0.28%, aligning with the official exchange rate of N1,469.97 per US Dollar in the foreign market on Friday. Remarkably, this latest adjustment constitutes the third upward review in one week and the seventh within the first eight months of President Tinubu’s administration, which initiated the floating naira policy to stabilize the forex market.

The timeline of these adjustments is noteworthy, with rates climbing from N422.30/$ on June 24, 2023, to the current N1,417.635/$. This trajectory has left experts concerned about its implications on the prices of imported goods and services in Nigeria.

Bisiriyu Fanu, former chairman of the Association of Nigeria Licensed Customs Agents at Seme Border, highlighted that the surge in Customs duty, driven by high FX rates, is bound to impact all goods in the market. This is because virtually every commodity has imported inputs, setting the stage for a potential rise in the overall cost of living.

The Director of the Centre for the Promotion of Private Enterprise, Muda Yusuf, has also voiced concerns, emphasizing that heightened import duties may contribute to further impoverishment among Nigerians. As the nation grapples with these economic shifts, staying informed about policy changes and their repercussions becomes imperative for businesses and consumers alike.

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