The Central Bank of Nigeria (CBN) has adjusted the Customs foreign exchange rate for cargo clearance at Nigeria’s air and seaports. This change follows the naira’s recent rally across forex markets, sparking optimism that the exchange rates are moving towards convergence.

CBN Adjusts Customs Rate Amid Naira Appreciation

Data from the Nigeria Customs Service trade portal indicates that the CBN adjusted the import duty exchange rate to N1,500.024 per dollar. This means that importers applying for cargo clearance will now pay less than those who filed the previous day, easing financial pressure on businesses reliant on imports.

The Customs duty rate aligns with Nigeria’s daily exchange rate in the FX markets, ensuring more fluidity in import transactions and stabilizing costs for traders and businesses.

Naira Strengthens Across All Markets

The naira demonstrated notable gains in both the official and parallel markets. On Thursday, February 20, 2025, the official exchange rate stood at N1,494.03 per dollar, marking an appreciation of 1.04%. Simultaneously, the naira strengthened in the parallel market, closing at N1,510 per dollar, further narrowing the gap between the two markets.

Market analysts attribute this improvement to the CBN’s active intervention policies, including improved forex liquidity and strategic monitoring of speculative trading. In the FMDQ Exchange, the naira climbed 0.05%, while the parallel market recorded a 0.65% rise to N1,535 per dollar.

Experts Applaud CBN’s Policy Moves

Despite the positive trend, experts caution that the N1,500 per dollar rate remains far from the N1,360 per dollar rate recorded in April 2025, when the naira was ranked as the world’s best-performing currency.

Janet Ogochukwu, a senior economist and banker, commended the CBN’s consistent efforts to stabilize the exchange rate. She noted that the convergence of rates would enhance investor confidence and reduce currency volatility.

“The naira’s exchange rate is stabilizing, which is a positive signal. However, the CBN should remain proactive to prevent the markets from drifting apart again. At one point, the disparity between the official and black market rates was over N100, which raised concerns among foreign investors,” Ogochukwu stated.

Declining Dollar Demand Supports Naira’s Recovery

Reports indicate that the demand for the US dollar has waned in the black market, contributing to the naira’s appreciation. On Wednesday, February 19, 2025, the naira surged to N1,550 per dollar in the parallel market, with currency dealers quoting a high of N1,545 and a low of N1,530 before settling at N1,550.

Market observers suggest that the CBN’s liquidity interventions and improved forex inflows are key drivers behind the dollar’s decline. Traders report that speculative demand has dropped, allowing for a more stable and predictable naira valuation.

Conclusion

The CBN’s latest forex adjustments are yielding results, as seen in the naira’s strengthened position. While the exchange rate still fluctuates, efforts to stabilize and converge rates continue to gain traction. Analysts remain hopeful that sustained policy measures will further enhance the naira’s performance in the coming months.