Import exchange rate benchmark drops to N1,238.179/$

The Nigeria Customs Service has updated its exchange rate for calculating import duties, setting it at N1,238.179/$, a rate that surpasses the Nigerian Autonomous Foreign Exchange Market (NAFEM) rate (₦1230.61/$).

This adjustment also positions the Customs rate higher than the parallel (black) market rate, which stood at N1,200/$1 as of April 10, 2024. This development follows the rate’s decline to N1,246.66/$1 on April 5, 2024, previously falling below the then-official market rate of N1,251/$ – a difference of N5 by the close of business on Friday.

Despite a steady decrease in the Customs duty exchange rate and a consequent reduction in the import duty payments for cargo clearance at ports, the market prices of goods continue to soar.

The price for five litres of Mobile 5W20 engine oil has risen from N25,000 to N28,000 while the oil filter for Ford rose from N4,000 to N5,000 and engine coolant from N4,500 to N5,000.

Furthermore, the price of a 205-litre Hisense refrigerator has escalated from N260,000 to N300,000, with sellers halting importation until the foreign exchange market stabilises.

The automotive sector, in particular, feels the impact, as Adekunle Moruf, a mechanic, highlighted the sharp increase in car part prices. Dealers justify the hikes by pointing to the high exchange rates at the time of purchase, expressing reluctance to sell at a loss.

On a positive note, the prices of staple foods like rice have seen a decrease. A 50-kilogramme bag of long-grain rice dropped from N75,000 to N70,000, while short-grain varieties went from N70,000 to N68,000, providing a slight reprieve amid rising costs in other sectors.