The Comptroller General of the Nigeria Customs Service (NCS), Mr Bashir Adeniyi, has announced that the agency will now use the official Central Bank of Nigeria (CBN) exchange rate for computing import and export duties.
Speaking during an interview on Arise TV, Mr Adeniyi said the NCS does not have autonomy in determining the exchange rate for customs purposes. “We follow what is prescribed for us by the regulatory authority for monetary affairs, which is the CBN,” he stated.
The pronouncement comes on the heels of recent increments in the exchange rate used by the NCS for assessing import duties, which saw the rate inch close to that of the unofficial market rate. In November and December 2022, the customs exchange rate was raised from N757/$ to N951/$, representing a cumulative increase of over 20%.
Mr Adeniyi noted that as a government agency, the NCS will comply with official fiscal and monetary policies. He cited examples such as the removal of VAT on LPG imports and electric vehicle imports.
On revenue generation, the Customs boss revealed that collections have increased 37% under his watch. The agency is targeting revenue of N5.1 trillion in 2024. He added that trade facilitation is also a major priority for customs, especially with the implementation of the Africa Continental Free Trade Area (AfCFTA) agreement.
The new policy is expected to reduce arbitrariness in the exchange rate applied by customs commands across the country. Importers hope it will lead to stability and predictability of duty rates on imports.
Credit: The Nigeria Lawyer