CUSTOMS CLAIMS CBN-APPROVED FOREX RATES FOR IMPORT DUTIES HAVE CAUSED PROBLEMS.

The FX market (pronounced “fix”), or currency market) is a global decentralized or over-the-counter (OTC) market for exchanging currencies. This market determines the FX rates for all currencies. It covers all aspects of purchasing, selling at current or predetermined prices. In terms of trade volume, it is far and away the world's largest market, followed by the credit market.

The Nigeria Customs Service (NCS) disclosed that the service has faced significant issues due to variations in the Central Bank of Nigeria's (CBN) currency rate regime for import duties, which it claims have interrupted its operations.

The Comptroller General of Customs, Adewale Adeniyi, announced this during a press event in Abuja on Wednesday, April 3, 2024, when he observed that 13 distinct spot rates were in effect in March.

Adeniyi stated that these shifting rates have conveyed troubling signals to stakeholders, impacting and interrupting operations.

CBN DIRECTED 28 RATES IN THE LAST QUARTER.

In his address to journalists, Adeniyi stated, “In the last quarter, the CBN directed a total of 28 rates, ranging from NGN 951.94 per USD 1 in January 2024 to a high of NGN 1,662.35 per USD 1 in February 2024.” In February, there were 15 distinct spot rates, ranging from NGN 951.94 per USD 1 to NGN 1,662.35 per USD 1. In January, the currency rate remained constant at NGN951.94 per USD 1.In March, 13 distinct spot rates were implemented, with prices ranging from NGN 1,303.84 to NGN 1,630.16. These changes resulted in an average applied exchange rate of NGN 1,314.03 per USD 1 for the clearing of Customs items during the quater.

“The repercussions of these fluctuating rates have sent concerning signals to our stakeholders, affecting them. Adeniyi, on the other hand, said with the recent relative stability, noting that the Service, with the support of the Minister of Finance, Wale Edun, has initiated periodic consultations with the apex bank to mitigate the potential impact of exchange rate fluctuations on import activities.”

EARNS N1.3 TRILLION IN Q1 2024.

Meanwhile, at the press briefing, Adeniyi revealed that the service generated a total of N1.3 trillion in income for the first quarter (Q1) of 2024, indicating a 122.35% increase over the same period in 2023 when the service collected N606.1 billion.

He attributed the success to the officers' dedication and collaboration with stakeholders, as well as the eradication of smuggling and increased trade facilitation.

He stated, “In the first quarter of 2024, the NCS displayed extraordinary performance in revenue collecting. The total revenue collected during this period was NGN 1,347,675,608,972.75. The first quarter collection increased by 122.35% from the same period last year, totaling NGN 606,119,935,146.67.When compared to the Federal Government's annual income objective of NGN 5.07 trillion for the NCS to collect in 2024, the target is equivalent to a monthly revenue target of NGN 423 billion.”

Adeniyi also collected N1.6 billion from its electronic auction platform, which was launched in the first quarter of this year.