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CBN under Tinubu hikes Customs duties three times in 2024

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The year 2024 has witnessed the Central Bank of Nigeria, CBN, led by President Bola Ahmed Tinubu, making its third adjustment to the Customs duties exchange rate. Import duties have been revised to N1,417.63 per US dollar from N1,413.62, as reported by NewsNow. This increase means higher costs for clearing goods at the port since import duties are tied to the dollar.

The recent adjustment represents a N4.015 increase and a 0.28% rise, reflecting the official exchange rate of N1,469.97 per US Dollar in the foreign market on Friday. This marks the third exchange rate review in one week and the seventh adjustment by the apex bank in 2024. The floating naira policy, introduced at the beginning of President Tinubu’s administration, aimed to stabilize the forex market.

Notably, the Customs has adjusted the exchange rate several times since June 2023, when it was N422.30/$. Subsequent adjustments led to rates of N589/$, N770.88/$, N783.174/$, N951.941/$, N1,356.883/$, and N1,413.62/$ before the recent increase to N1,417.63/$. Experts have warned that these continuous hikes in import duties may result in higher prices for imported goods and services in Nigeria.

Bisiriyu Fanu, the former chairman of the Association of Nigeria Licensed Customs Agents at Seme Border, raised concerns, stating that the increase in Customs duty due to high FX rates will impact all goods in the market, as most commodities have imported input. Earlier, Muda Yusuf, the Director of the Centre for the Promotion of Private Enterprise, expressed his concern that the heightened import duty would further impoverish Nigerians.

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