CBN releases new customs rate to clear goods as dollar crashes against naira

DDM News

The Central Bank of Nigeria (CBN) has reduced the exchange rate used to calculate customs duty, providing relief for importers clearing goods at the nation’s ports.

Diaspora Digital Media (DDM) gathered that the reduction follows a remarkable appreciation of the naira against the US dollar, as the local currency continues to recover value in the foreign exchange market.

According to data from the Nigeria Customs Service portal, the new exchange rate for import duties is now pegged at ₦1,552.616 per dollar.

This represents a slight decline from the previous rate of ₦1,564.94 used just a day earlier.

The revised rate means that importers will now pay less in naira to clear their goods through Nigerian air and seaports.

This development is expected to ease the cost burden on businesses heavily dependent on imported goods and raw materials.

The CBN’s move to adjust the rate is aligned with the strengthening of the naira, which gained significantly in the first week of June 2025.

By Friday, June 6, the naira closed at ₦1,551 per dollar in the official market, up from ₦1,579 the previous week.

The strengthening naira has also affected the Form M process, which is critical for processing imports.

With the lower exchange rate, importers now spend less naira to meet their foreign currency obligations under the Form M requirement.

This policy shift is expected to stimulate import activities and reduce inflationary pressure linked to high import costs.

The positive naira movement is linked to a surge in foreign exchange inflows into Nigeria.

Reports from May 2025 indicate that total FX inflows rose by 62% to $5.96 billion from $3.67 billion in April.

Much of this boost came from domestic sources, which accounted for 83.2% of the total inflows.

The breakdown of the figures reveals that domestic FX contributions jumped by 64.2% to reach $4.96 billion.

This increase was driven by improved participation from exporters, importers, non-bank corporates, and individual contributors.

Exporters and importers led the surge with a combined contribution of $3.11 billion in May, compared to just $655.7 million in April.

Non-bank corporate inflows followed with $1.11 billion, while individual contributions stood at $91.4 million.

The increase in FX supply has been crucial in reducing pressure on the naira and driving its recent appreciation.

Experts attribute the naira’s performance to several CBN policies, including frequent Open Market Operations (OMO) auctions.

These auctions offer investors attractive yields, encouraging portfolio investments into the Nigerian financial system.

Last week, the CBN conducted multiple OMO auctions, which attracted fresh capital inflows and increased foreign exchange liquidity.

The result was a 2.3% weekly appreciation of the naira, closing at ₦1,551 per dollar.

Janet Ogochukwu, a senior banker and economist, commended the CBN’s efforts in boosting FX availability through monetary tools.

She stated that the naira’s gain is not merely from direct intervention but also from increased local participation in the FX market.

“We can see that the current naira’s gain is not just due to CBN’s intervention but due to a surge in inflows,” she said.

Ogochukwu noted that the significant role of importers and exporters in domestic FX supply highlights a more resilient currency environment.

She urged the CBN to further explore other avenues to maintain this momentum and stabilize the naira over the long term.

Despite the strong performance of domestic sources, foreign direct investment (FDI) dropped slightly by 6.3% to $880.8 million in May.

Analysts believe this may be due to lingering investor concerns about the long-term policy environment and security issues.

However, the rise in FX from non-bank sources and individuals suggests a growing confidence in the Nigerian economy.

The CBN’s strategy of managing liquidity through OMO sales appears to be yielding results, helping to close gaps in FX demand.

As of the end of May, the naira had already gained ₦16 against the dollar, reversing earlier losses experienced in the same month.

Experts see this as a turning point in the FX market, especially if current policies are maintained and improved upon.

They also caution that sustaining the gains will require more than short-term fixes.

A stable macroeconomic environment, strong institutional confidence, and sustained capital inflows will be essential for long-term success.

Businesses and market analysts are closely watching the FX space for further signals from the CBN and market forces.

Importers, in particular, have expressed optimism that the new customs rate will reduce costs and ease pressure on pricing.

Exporters also believe that increased market participation may encourage more production and competitiveness abroad.

As the naira continues to show signs of strength, attention will now shift to how the CBN can build on this momentum.

Many experts hope that a return to a more stable and investor-friendly environment can finally bring long-term stability to Nigeria’s FX regime.

For now, the combination of policy interventions and increased market confidence appears to be working in favour of the naira.

It remains to be seen whether the trend will continue through the second half of 2025.

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