The Nigerian Customs Service has announced a 5.3% reduction in its foreign exchange rate for customs duties collection, setting it at N1,544.081 per US dollar in response to the sustained appreciation of the Naira in the foreign exchange market.

This adjustment comes after the Naira’s recent strengthening against the dollar.

The revised rate marks a decrease from the previous rate of N1,605 per USD in February.

The move aligns with the trend of Naira appreciation, with recent data from FMDQ indicating that the Naira closed at N1,534.19 per USD at the end of Monday’s trading session, further reinforcing the currency’s improved performance.

The customs exchange rate, initially fixed by the Central Bank of Nigeria, experienced its sixth increase on February 21. The consistent adjustments reflect efforts to adapt to the dynamic foreign exchange landscape and maintain balance.

The Centre for the Promotion of Private Enterprise had previously suggested pegging the exchange rate for import duty at N1,000 per US dollar to address rising inflation, which stood at 29.90% in January 2024.

However, the recent move by the NCS appears to be a more moderate adjustment in response to the changing forex dynamics.

In issuing guidelines to the Nigeria Customs Service, the Central Bank of Nigeria emphasized adopting the foreign exchange closing rate on the date of ‘Form M’ submission by importers for the clearance of goods and import duty assessment.