In a surprising move, the Central Bank of Nigeria (CBN) has jolted the importation landscape by elevating the Nigeria Customs Service exchange rate to N1,356.883 per US dollar, up from the previous N951.842. This swift adjustment, confirmed by Customs Broker Barr Michael Ovien, comes as a shock to maritime stakeholders, signaling potential price hikes in the near future.
The increased exchange rate, now reflected on the Trader Portal for Single Window Trade, is poised to raise importation costs, creating a ripple effect that could lead to a significant surge in the prices of goods and services in the market. The timing of this adjustment, following the Naira’s recent free fall, amplifies concerns about its broader economic impact.
As Nigeria’s total trade in the third quarter of 2023 reached N18.80 trillion, with exports at N10.35 trillion and imports at N8.46 trillion, the implications of this exchange rate increment are substantial. The cost of imported goods is expected to escalate, reaching a staggering N1,356.883 per US dollar.
This move comes on the heels of the CBN’s removal of the cap on exchange rates quoted by International Money Transfer Operators (IMTOs). The circular, signed by Hassan Mahmud, Director of Trade and Exchange Department, aimed to address the volatility in the FX market. The recent surge in the Customs exchange rate further underscores the urgency behind CBN’s policy interventions to stabilize the Naira.
While the CBN’s efforts have positively impacted the Naira against the US dollar in the short term, the Forex market remains high, closing at N1461.90 per dollar at the FMDQ market on Thursday. As stakeholders navigate these developments, the economic landscape braces for potential price fluctuations and challenges ahead.
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