The exchange rate used by the Nigeria Customs Service to determine import tariffs has been revised to N1,238.179/$, higher than the rate used by the Nigerian Autonomous Foreign Exchange Market (NAFEM) (₦1230.61/$).
Additionally, as of April 10, 2024, the Customs rate is greater than the black market rate, or parallel rate, which was N1,200/$1. This comes after the rate dropped to N1,246.66/$1 on April 5, 2024, below the official market rate of N1,251/$ at that time. By Friday’s close of business, the difference was N5.
The market prices of commodities keep rising even as the exchange rate for customs duties has been steadily declining, which has led to a fall in the import tax payments required for cargo clearance at ports.
Five litres of Mobile 5W20 engine oil now cost N28,000 instead of N25,000, while the cost of an oil filter for Ford increased from N4,000 to N5,000, as well as the cost of engine coolant from N4,500 to N5,000.
In addition, vendors are stopping imports of 205-liter Hisense refrigerators until the foreign exchange market stabilises, pushing up the price of the refrigerator from N260,000 to N300,000.
Particularly affected is the automotive industry; mechanic Adekunle Moruf pointed out that the cost of vehicle parts has increased dramatically. Dealers explain their decision to not sell at a loss by citing the high exchange rates that existed at the time of purchase.
Positively, there has been a drop in the cost of basic staples like rice. While short-grain types increased from N70,000 to N68,000, a 50-kilogram bag of long-grain rice dropped from N75,000 to N70,000, offering a small respite amidst growing costs in other areas.
