Prices of goods are set to increase as the Central Bank of Nigeria (CBN) raised the exchange rate used by the Nigeria Customs Service for imports to N1,356.883 per US dollar from the previous N951.842.
The circular signed by Hassan Mahmud, Director of Trade and Exchange Department, was titled ‘Removal of Allowable Limit of Exchange Rate Quoted by the International Money Transfer Operators’.
This move is expected to inflate import costs and, consequently, the prices of goods and services across the board.
The directive by the CBN was announced on Friday, leaving Maritime stakeholders shocked.
The new exchange rate is already reflected on the Trader Portal for Single Window Trade, a frontline Customs Broker, Barr Michael Ovien, confirmed as per Daily Post.
Economists predict a domino effect, with import costs rising astronomically and translating into higher prices for consumers. This is particularly concerning given Nigeria’s heavy reliance on imported goods. In the third quarter of 2023 alone, the country’s total imports reached N8.46 trillion, highlighting the potential impact of the exchange rate hike.
The CBN’s decision comes amidst a turbulent period for the Naira, which has seen a free fall in recent days. In a bid to curb the fluctuations, the bank has implemented several policy interventions, including removing the cap on exchange rates quoted by International Money Transfer Operators (IMTOs) and issuing guidelines to stop foreign currency hoarding and speculation.
