FX volatility forces 28 changes in Customs duty rate

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The Nigeria Customs Service (NCS) is grappling with significant challenges due to instability in customs duty rates caused by fluctuations in foreign exchange rates. Over the past three months, the duty rate has changed a staggering 28 times, creating uncertainty for both the service and businesses involved in import and export activities.

Despite these challenges, the NCS announced a substantial revenue generation of N1.347 trillion in its operations for the first quarter of 2024. This figure represents a remarkable 122% increase compared to the corresponding period last year. The Comptroller-General of Customs, Mr. Adewale Adeniyi, disclosed this during a briefing in Abuja, highlighting that the revenue exceeded the quarterly target set by the federal government by N78.675 billion.

Adeniyi identified the volatility of foreign exchange rates as a major obstacle faced by the NCS, with the service having to navigate through 28 different exchange rates in the last three months alone.

Source: Vanguard

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