By Kayode Sanni-Arewa

The Central Bank of Nigeria has reviewed the cargo clearance exchange rate at both the nation’s seaports and airports to ₦1,618.73 per USD from ₦1,600.32, the highest since March 2024.

It was coming in tandem with a 6.43 per cent depreciation of the naira in July, hence it has made the adjustment most worrying, especially to importers, considering its impact on raising import costs and fueling inflation.

Recall CBN’s efforts to stabilize the naira through many sales of foreign exchange continued to show some challenges in the market. The exchange rate appreciated by ₦18 to close at ₦1,618.73 as against ₦1,600.32 recorded in the previous session. Reacting to the growing pressure on the naira, the CBN sold FX to authorized dealers and BDC operators in several intervention exercises in July. However, clearing agents say the cost of clearing containers at the ports has increased to an unbearable level due to the hike in the exchange rate, a development, according to Oladimeji Majekodunmi, that has almost eclipsed the gains of the flexible exchange rate window introduced by the CBN.

He said, “The moment CBN increases, Customs don’t have a choice than to adjust the new duty in their system. Now to clear a 40ft container of food items, it costs nothing less than ₦20 million and above. This was far below the amount we used to clear the same consignment before.” He said cargo throughput into the country has drastically dropped to about 30%, leaving the ports empty and dry.

He wanted the federal government to have a special exchange rate for the calculation of import duties, according to the National President of the National Council of Managing Directors of Licensed Customs Agents, Lucky Amiwero.

He said it would foster economic development and positively affect the larger Nigerian populace with a consistent, very manageable exchange rate for import duties. Amiwero felt a serious misgiving over the existing dependence on floating exchange rates for the purposes of calculating customs duty. He said that is one of the major factors jacking up prices of all goods, and not just foodstuffs, selling in all markets in Nigeria. “We want to draw the attention of the Federal Government to the harrowing experiences of Nigerians, more so with the astronomical rise in the prices of items due to the floating exchange rate, which was foisted on import duty computations, many of them. This is making importation come to a near standstill, stifling transportation and throwing such staples as grains and tubers into an abominable scarcity, particularly for those who are penniless and can’t buffer their existence from financial shock.”

Amiwero canvassed programmes that would eliminate the vagaries and ambiguities associated with the current exchange rate regime. He called for a stricter framework that would help to align the domestic

The MPC of the CBN meets on February 26, where most of these issues are expected to be resolved.