Recently, the Nigerian central bank raised the tariff rate of the Naira against the US dollar from 306 to 326, an increase of 6.5%, which means that all imported goods must pay an additional tariff of about 6.5%.
It is worth noting that this adjustment official did not give a notice and buffer period, so many importers were caught off guard. Some importers received orders at the exchange rate of 306, but now have to face an additional increase in customs clearance costs.
Nigeria is a foreign exchange-controlled country. The foreign exchange purchase policy will change frequently with the adequacy of foreign exchange reserves. Even Nigerian customers will delay payment on the grounds that they can't buy the US dollar now.
One of the Nigerian cargo import and export contract documents is “the Form M”, which is a form file introduced by the central bank and customs of the country for the purchase of foreign exchange. The exchange rate applicable to customs duties is indicated in this document and is used to calculate tariffs and related surcharges.
Most Nigerian importers will go to the bank to pay customs duties after receiving a copy of the exporter’s bill of lading.
In addition to rising customs clearance costs, Nigeria has recently implemented a number of new policies.
1. Textile import ban
The President of the Central Bank of Nigeria (CBN) held a meeting of textile industry with Nigerian textile industry on March 5, and announced at the meeting that all textiles prohibition of foreign exchange orders came into effect immediately. According to the Directive, banks and foreign exchange dealers involved in the Nigerian foreign exchange market may not provide foreign exchange settlements to textile importers. In addition, the government will crack down on the smuggling of textiles into the Nigerian market by neighboring countries (such as Senegal, Ghana, Zambia, etc.).
2. Nigeria announces notice of SONCAP certification requirements
Recently, the Nigerian National Bureau of Standards (SON) announced that the SONCAP certification requirements notice, aluminum coils and coil products exported to Nigeria, must be 100% on-site inspection before issuing the SONCAP certificate. The issuance of the SONCAP certificate can only be further evaluated after the on-site inspection is passed. The SONCAP certificate is a required document for customs clearance of goods at the destination port in Nigeria.
In addition, according to data from the International Monetary Fund, the current daily sales quota for Nigeria's official exchange window has dropped from US$500,000 to US$100,000.
Remind foreign trade friends, when you pick up an order from Nigeria, first evaluate the customer's ability to pay. For orders with high value, first ask the amount of foreign exchange that the other party can apply for.