The Nigerian Customs Service has confirmed that it has reduced the exchange rate used to calculate duties from NGN316 to NGN306 per USD1.
The reduction has in Forex rate has further reduced duties paid on consignments. However, stakeholders in the industry, mostly clearing agents were said not be excited by the reduction.
Many clearing agents believe the new rate is still far higher than what they expected. Mr. Kayode Farinto, the Publicity Secretary of the Association of Nigeria Licensed Custom Agents, ANLCA to Shipping Position that the reduction was made last Monday and that it was caused by market forces.
However, the Minister of Finance, Kemi Adeosun has reiterated that the federal government will be looking at further cutting tariffs especially duties paid on imported used vehicles to curb smuggling and shore up government revenue.
Nigeria has been battling Forex shortages since the global oil price tanked by more 70%. As an import dependent country for finished goods and raw materials, the lack of Forex has increased the prices of goods and service, thereby increasing inflation.
