After ANLCA’s Intervention, CBN Adopts ‘Closing FX Rate on Form M’ for Import Duty Assessment
L-R: National President of ANLCA, Emenike Nwokeoji, Comptroller General of Customs, Wale Adeniyi and the Governor of Central Bank of Nigeria, Yemi Cardoso
By DAPO OLAWUNI
Following various appeals by port industry stakeholders, particularly the Association of Nigerian Licensed Customs Agents (ANLCA) on fluctuations in the exchange rate for Customs duty payments, the Central Bank of Nigeria on Friday, 23rd of February, 2024 has announced that henceforth, the official closing exchange rate on the date of opening Form M for the importation of goods has been adopted as the FX rate to be used for Import Duty Assessment.
In a circular with numbers: TED/FEM/PUB/FPC/001/007 dated February 23, 2024, and signed by Dr Hassan Mahmud, the Director Trade and Exchange Department of CBN, the Nigeria Customs Service will henceforth accept the exchange rate applicable on the date the importer opens his Form M, up until the cargo is imported and cleared from the port.
While addressing a world press conference on Thursday in Lagos, the National President of ANLCA, Mr Emenike Nwokeoji revealed that the executives of the association had met with the Management of the Nigeria Customs Service, and also written the CBN, the Ministry of Finance among others to express its misgivings about the floating Customs duty exchange rate.
Importantly, the association which is the biggest freight forwarding association in Africa, threatened to shutdown the port of necessary corrections are not effected by the government.
In what seems like a direct response to the plea of the association, the CBN Circular which was exclusively obtained by DAILY TREND on Friday reads;
TO: ALL AUTHORIZED DEALERS, THE NIGERIAN CUSTOMS SERVICE AND THE GENERAL PUBLIC
FOREIGN EXCHANGE RATES FOR IMPORT DUTY ASSESSMENT
Following the liberalization of the FX market on Willing Buyer — Willing Seller trading principle,
the Central Bank of Nigeria has noted the concerns of Importers of goods and services in the irregular changes in the Import Duty Assessment levies applied by the Nigeria Customs Service
These developments have further built uncertainties around the pricing structure of goods and services in the economy and creating abnormal increases in the final sale prices of items, which is largely driven by uncertainties, rather than traditional market fundamentals, with implications to near term inflation trend.
To this effect, the Central Bank of Nigeria wishes to advise that the Nigeria Custom Service and other related Parties adopt the closing FX rate on the date of opening Form M for the importation of goods, as the FX rate to be used for Import Duty Assessment. This rate remains valid until the date of termination of the importation and clearance of goods by importers.
This would enable the Nigeria Custom Service and the importers to effectively plan appropriately and reduce the uncertainties around varying daily exchange rate in determining their revenue or cost structure, respectively.
Therefore, effective 26″ February 2024, the closing rate on the date of opening of Form M for the importation of goods and services would be the rates that would apply for the assessment of import duty. This supersedes the requirements of Memorandum 9, J (2) of the Central Bank of Ni-eria Foreien Exchanee Manual. (Revised Edition), 2018.
While the CBN is mindful of the initial volatility and price distortions in the aftermath of the FX market liberalization, the Bank is confident that these reforms, would in the medium term, ensure stability in the market and entrench market confidence necessary to attract investment capital for the growth and development of the Nigerian economy.
This attitude of always ascribing any little positive development in the Freight Forwarding Sector to a particular Association is what breeds unhealthy rivalry among the various Associations. As a matter of fact, there is no Association that has not cried out about this crippling development. It was, indeed topical during the CRFFN recent visitations to all the accredited Associations, and they must have submitted a report based on the out come of the interactive sessions to the Government. Many individuals have, before now, added their voices by press interviews and other contacts. Even the manufacturers and the general public have not been left out.
We must therefore, stop this show of always assuming primacy in the industry. It portrays as a people that are always at war with themselves. Let us adopt a new approach this year…Frank Obiekezie
I don’t understand what the message is implying.Anlca has made a bold step and is on record that our president has succeeded in persuading the customs management and the CBN to bring the exchange rate of duty payment or else we down tool.That is a laudable achievement
Hopeless idiots who killed, maimed and stole their selves to power and having no idea of what to do has messed up Nigeria You can’t fool everyone, We know you scum heads only borrowed sense from Peter Obi’s complaint to adjust your senseless inconsistency and near daily duty exchange rate hike within CBN and customs, not that you listened to any ANLCA, You know the damage you ve done in businesses? You are here to liquidate our life efforts & savings, You guys think business is about multiple taxation and widening of tax nets, You ve all killed Nigeria by your useless policies and hasty subsidy pronouncements. Check the landing cost of commodities and ordinary cars and see you ve trown Nigerians into bottomless pit of poverty and hopelessness, where ll middle classed men get eighteen million #18,000,000 to buy say for example 2010 highlander? What of common food? It shall never be well with you scum heads