The Central Bank of Nigeria has adjusted the exchange rate for customs clearance at ports, raising it from N1537.07 to N1605.82 per USD, marking an increase of N68.75.
This update is in response to market conditions, with the CBN and Nigeria Customs Service adapting the exchange rate for cargo clearance three times within the past week, as reported by the federal government’s trade portal.
The Comptroller-General of Nigeria Customs clarified that they do not set the exchange rate for cargo clearance, emphasizing that it falls under the purview of the apex bank.
The elevated exchange rate for cargo clearance signifies higher costs for Nigerians in clearing goods, potentially leading to an upsurge in consumer prices. This development exacerbates Nigeria’s existing cost of living crisis, with inflation reaching a 28-year high at 29.90% as of January 2024.
The country is grappling with widespread law and order challenges, with protests and threats recorded in major cities due to the escalating cost of living. The African Development Bank has issued warnings about the potential for social unrest in Nigeria, Kenya, and other nations due to rising fuel and commodity costs.
In recent events, the Naira plummeted to a record low of N1,830 to the USD on the parallel market, reflecting a 7.10% decline from the previous day’s rate of N1700/$, as reported by the Nairametrics daily FX monitor.
Despite CBN reforms aimed at stabilizing the Naira’s value, the currency’s continuous depreciation contrasts with these efforts. The current Naira exchange rate stands at N1693.9/USDT on Binance.
