In a bid to address the challenges posed by the volatility in the foreign exchange market, the Central Bank of Nigeria (CBN) has instructed the Nigerian Customs Service (NCS) to adopt the FX closing rate on the date of Form M submission by importers for the clearance of goods and import duty assessment.
The directive, aimed at curbing the disruptions caused by frequent updates on the customs website regarding forex market liberalization, was conveyed in a circular signed by Hassan Mahmud, the Director of the CBN’s Trade and Exchange Department.
According to the CBN, the constant changes in customs duties rates have led to pricing irregularities, resulting in unpredictable increases in the final cost of goods in the market.
“To this effect, the Central Bank of Nigeria wishes to advise the Nigeria Customs Service and other related parties to adopt the FX rate on the date of opening the Form M for importation of goods, as the FX rate to be used for import duty assessment. This rate remains valid until the date of termination of the importation and clearance of goods by the importers,” the circular read.
“This would enable the Nigeria Customs Service and the importers to effectively plan appropriately and reduce uncertainties around varying exchange rate in determining revenue, or cost structure respectively.
“Therefore, effective 26th February 2024, the closing rate on the date of opening of Form M for importation of goods and services would be the rate that would apply for assessment of goods and services. This supersedes the requirement of Memorandum 9, J (2) of the Central Bank of Nigeria Foreign Exchange Manual (Revised Edition) 2018.”
