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The Central Bank of Nigeria (CBN) has issued a pivotal directive to the Nigerian Customs Service (NCS) to harmonize its foreign exchange (forex) rate.
This is in a bid to clear imported goods with the officially sanctioned FX rate.
Hassan Mahmud, the Director of the CBN's Trade and Exchange Department, conveyed this directive in a recent circular, emphasizing the imperative of consistency to tackle pricing irregularities triggered by incessant fluctuations in customs duty rates.
Mahmud urged the NCS to adhere to the FX closing rate recorded on the date of Form M submission by importers, underscoring the gravity of the situation.
This proactive step aims to mitigate disruptive effects stemming from frequent updates encountered on the customs website, particularly in light of ongoing forex market liberalization efforts.
By anchoring import duty assessment to the FX closing rate specified upon Form M initiation, both customs officials and importers stand to benefit from enhanced predictability and reduced uncertainties in the market landscape.
Effective as of February 26, 2024, the directive stipulates that the closing rate documented on the date of Form M initiation shall serve as the benchmark for import duty assessment, thereby superseding any preceding guidelines delineated in the Central Bank of Nigeria Foreign Exchange Manual.
This strategic shift not only bolsters operational efficiency within the customs clearance process but also bolsters broader market stability, fostering an environment conducive to sustainable economic growth and development.
The CBN's expression of confidence in these measures resonates with a broader strategic vision geared towards bolstering market stability and investor confidence.
By instilling a sense of predictability and transparency in import duty assessment procedures, these initiatives are poised to catalyze increased investment capital inflow, thereby propelling Nigeria towards a trajectory of sustained economic prosperity.
