Devaluation of Naira may spike import duty 

For the second time in 2020, the Central Bank of Nigeria (CBN) has devalued the official exchange rate of the Naira from N360/$ to N380/$.

According to information on the website of the CBN, the adjustment occurred on Thursday August 6th 2020.

This according to expert, will increase import duty paid on clearance of cargoes out of the nation’s seaports.

However, the exchange rate suggests the CBN may have unified the exchange rate in line with the promise made by Godwin Emefiele, the Governor of the Central Bank of Nigeria.

In the data from the Central Bank, the new regime of official exchange  rates are as follows 

 

Current (Previous)Buy- N379 (N360)
Central – N379.5 (N360.5)

Sell – N380 (N360.1)

There were no official press releases explaining the reason for the devaluation or adjustment as the central bank likes to call it. 

This is now the second devaluation of the official exchange rate after the rate was adjusted from N307 to N361 on the 20th of March 2020. The CBN has also adjusted the exchange rate for the SMIS window.

In June, the CBN Governor Godwin Emefiele assured investors in June that the CBN will unify the exchange rate around the NAFEX rate in line with the conditions of the world bank.

“We will continue to pursue unification around the NAFEX Market”.  Emefiele