Exchange rate for cargo clearance hits N1,605/$ as economic crisis deepens

The Central Bank of Nigeria (CBN), on behalf of the federal government, has increased the exchange rate for cargo clearance to N1,605/$.

Since President Bola Tinubu assumed power in May 2023, the exchange rate has been reviewed upward nearly 10 times.

The first was in June 2023 when it was adjusted from N422.30 per dollar to N589 per dollar.

As importers were trying to adjust, the apex bank moved it to N770.88 per $1 in July.

How CBN raised exchange rate for customs duty by 235% in 8 months

2024 budget: How we settled for N800 to dollar exchange rate — Bagudu

On November 14, 2023, the CBN slammed another adjustment on exchange rate, rising from N770.88/$1 to N783.174/$1.

In December 2023, another adjustment was implemented as the exchange rate rose from N783.174/$1 to N951.941/$1 and on February 2, 2024, the CBN implemented the fifth increment, rising from N951.941/$1 to N1,356.883/$1

In January, it moved from N952/$ to N1356/$ and later to N1,413/$ before it went to N1,444/$ and subsequently N1,515 before finally getting to N1.605.

Reacting to the frequent increase, the National President of the Association of Nigerian Licensed Customs Agents, Emenike Nwokeoji, said the impact of the huge rise in the exchange rate of import will have immense implications on the masses.

He said essential medicines such as inhalers were no longer within the reach of the common Nigerians as the market price is now over the rooftop.

“We are talking of food but the implication of it is beyond food alone. There are people who survive on certain drugs on a daily basis. Right now, the drugs are not within their reach. The implication is that the death toll might rise as a result of this,” he had said.

Meanwhile, the House of Representatives has urged the apex bank to maintain the system exchange rate for Customs and Excise duty purposes below N1,000/$1 to encourage patronage in Nigerian ports to prevent galloping inflation and stabilise the economy.

The house said it would be preferable if the exchange rate for Customs and Excise duty is pegged at N951.941/$1.

The house also urged the Federal Ministry of Finance to ensure the international best practice of allowing a 90-day grace period for fiscal policy changes to facilitate the completion of ongoing transactions under existing policies.