The Central Bank of Nigeria (CBN) has raised the exchange rate for clearing cargo at the nation’s seaports and airports from N1,600.32 to N1,618.73.
This adjustment marks the highest rate since March 2024 and occurs alongside a 6.43 percent depreciation of the naira in July. The increase is poised to further burden importers, increasing import costs and exacerbating inflation. Despite the CBN’s efforts to stabilize the naira through multiple foreign exchange sales, challenges in the market remain.
According to the Nigeria trade hub, the federal government’s official single window for trade, the exchange rate climbed by N18 from the previous N1,600.32 to the USD.
It has been reported that this depreciation occurred despite the CBN’s attempts to address liquidity issues in the official market through dollar sales.
In July, the CBN conducted at least three foreign exchange (FX) sales to authorized dealers and one sale to Bureau de Change (BDC) operators as the naira faced intense pressure.
Commenting on the increased exchange rate, clearing agent Oladimeji Majekodunmi noted that the cost of clearing containers at the ports will skyrocket.
“When the CBN raises the rate, Customs has no choice but to adjust the duties in their system. Currently, clearing a 40ft container of food items costs no less than N20 million or more. This is significantly higher than what we paid to clear the same consignment previously, especially with the frequency of CBN’s rate hikes in recent months.
“Cargo throughput into the country has plummeted by about 30 percent. If you visit the port now, you will see how empty and desolate it has become. Some agents are struggling to afford transportation to the port, let alone feed their families. Many importers have gone bankrupt, and the situation is dire,” he lamented.
He emphasized the need for the Central Bank to provide importers with a stable exchange rate, arguing that fluctuations are detrimental to the economy.
Meanwhile, Lucky Amiwero, national President of the National Council of Managing Directors of Licensed Customs Agents (NCMDLCA), urged the federal government, through the CBN, to establish a special exchange rate for calculating import duties.
Amiwero stressed that a stable and manageable exchange rate for import duties would promote economic growth and benefit the broader Nigerian population.
However, he expressed grave concerns over the ongoing use of floating exchange rates for customs duty calculations, stating that this practice has significantly contributed to rising costs of goods and surging food prices in Nigerian markets.
According to Amiwero, a floating exchange rate adds unpredictability to the clearance process at ports, complicating logistics and imposing a heavy financial burden on consumers.
“We want to bring to the federal government’s attention the severe challenges faced by Nigerians, particularly the soaring prices of goods driven by the floating exchange rate applied to import duty calculations.
“This situation has drastically limited importation, disrupted transportation, and made basic foodstuffs increasingly scarce, particularly for those who struggle to make ends meet without a financial safety net,” he added.
He further explained that the fluctuating rates in the liberalized foreign exchange market have resulted in inconsistent pricing, causing an abnormal surge in the final sale prices of goods.
To tackle these challenges, Amiwero called for measures to eliminate the uncertainties and inconsistencies associated with the current exchange rate system.
He emphasized the importance of stabilizing the domestic trading environment to create a more predictable framework for importers.
