The Central Bank of Nigeria (CBN) has increased the exchange rate used by the Nigeria Customs Service for imports, which is expected to lead to higher prices for goods.
The new exchange rate is now N1,356.883 per US dollar, up from the previous rate of N951.842.
This decision was announced in a circular titled ‘Removal of Allowable Limit of Exchange Rate Quoted by the International Money Transfer Operators’, signed by Hassan Mahmud, Director of Trade and Exchange Department.
The increase in the exchange rate is likely to inflate import costs and subsequently raise prices for goods and services. Maritime stakeholders were surprised by this directive, which was announced on Friday.
The new exchange rate has already been implemented on the Trader Portal for Single Window Trade, as confirmed by Barr Michael Ovien, a Customs Broker. Economists predict that this change will have a domino effect, causing import costs to skyrocket and leading to higher prices for consumers.
This is a significant concern considering Nigeria’s heavy reliance on imported goods. In the third quarter of 2023, the country’s total imports amounted to N8.46 trillion, highlighting the potential impact of the exchange rate increase.
The Central Bank of Nigeria (CBN) has made a decision in response to the current unstable situation of the Naira. The Naira has been experiencing a significant decline in value recently. To address this issue, the CBN has taken various measures, such as removing the limit on exchange rates set by International Money Transfer Operators (IMTOs) and providing guidelines to prevent the hoarding and speculation of foreign currency. These actions aim to stabilize the Naira and reduce its fluctuations.
