In a recent circular issued by the Central Bank of Nigeria (CBN), the Director of Trade and Exchange Department, Hassan Mahmud, directed the Nigerian Customs Service (NCS) to implement a fixed forex rate for the clearance of imported goods.
The directive aims to address pricing irregularities caused by frequent changes in customs duties rates, which have led to unpredictable increases in the final cost of goods in the market.
According to the circular, the CBN instructs the NCS to adopt the foreign exchange (FX) closing rate on the date of Form M submission by importers for the clearance of goods and import duty assessment.
This measure is intended to mitigate the disruptions caused by the fluctuating forex market and the consequent updates on the customs website regarding forex market liberalization.
The CBN emphasized the importance of adopting a fixed FX rate from the date of Form M submission until the termination of importation and clearance of goods.
This approach aims to provide stability and certainty for both the NCS and importers, enabling them to plan effectively and reduce uncertainties associated with varying exchange rates in revenue determination and cost structures.
Effective from February 26, 2024, the closing rate on the date of opening of Form M for importation of goods and services will be the rate applied for the assessment of goods and services.
This directive supersedes the requirement stated in Memorandum 9, J (2) of the Central Bank of Nigeria Foreign Exchange Manual (Revised Edition) 2018.
The implementation of a fixed forex rate for import clearance is expected to streamline processes, enhance transparency, and contribute to a more stable business environment in Nigeria.
