CBN increases tax on imported goods by 11. 1% because the value of Naira has dropped by 12%

The Central Bank of Nigeria (CBN) has increased the rate for paying taxes at the country’s seaports by 11. 1% because the value of the Nigerian currency, the naira, has decreased compared to the US dollar.

The Apex bank increased the Customs FX duty rate from N1,150. 16 per dollar to N1,277. 526 per dollar on Thursday, April 25, according to information from the Nigeria Customs Service’s official trade portal.

This means the rate has gone up by 11. 1 percent compared to the old rate of N1,150. 16/$ for opening Form M. Also, it now costs N127. 366 more per dollar to clear goods at the port.

The naira lost value against the dollar on Thursday, closing at N1,309. 88 It decreased by 12 percent during the week on the Nigeria Autonomous Foreign Exchange Market.

Last week, the naira was worth N1,169. 99, but now it is only worth N1,030. 10 This means it has lost N139. 89 or 12% of its value in the past four days. On Monday, the naira was worth less at N1,234. 49

Even though sales increased from $89 million to $110 million, this still happened. By Tuesday, the value of the naira went down to N1,300. 15 for one dollar. During the day, trading happened at prices between N1,317 and N1000.

By the end of Tuesday, $133. 65 million was made from trading. By Wednesday, the value of the naira decreased and it closed at N1,308. 52 to the dollar. Trades were done at prices between N1,367 and N1,098 for a dollar. Sales at the market kept going up and reached $197. 54

By Thursday, the value of the naira went down a little to N1,309. 88 for one dollar. The deals made during the day were between N1,439 and N1,000. The total amount of money traded also went up to $318. 08

Traders see that the dollar went down in value because there is more demand than supply in the market. The Central Bank of Nigeria sold US dollars to small money exchange businesses on Monday.

Importers who apply for Form M today will need to have more money to pay import duties than those who applied earlier in the week.

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