• Mon. Apr 22nd, 2024

Customs E-Auction Generates N1.6 Billion In Two Months, Faces Forex Rate Woes

ByHybrid News

Apr 4, 2024

The Nigeria Customs Service (NCS) has announced that it recorded a significant revenue of N1.6 billion through its electronic auction platform between February and March 2024. Comptroller General of Customs, Adewale Adeniyi, made this revelation during a press briefing held in Abuja on Wednesday.

Adeniyi hailed the e-auction platform as a pivotal driver contributing to the service’s successes in the first quarter of the year. However, amidst this achievement, the CG expressed concerns over the challenges posed by the fluctuating exchange rates approved by the Central Bank of Nigeria (CBN) for import duty calculations, which have disrupted customs activities.

Highlighting the impact of the fluctuating rates, Adeniyi revealed, “In the last quarter, a total of 28 rates were directed by the CBN, ranging from NGN 951.94 per USD 1 in January 2024 to a peak of NGN 1,662.35 per USD 1 in February 2024.” He further noted that February witnessed 15 different spot rates, while March saw 13 different spot rates, resulting in an average applied exchange rate of NGN 1,314.03 per USD 1 during the quarter.

These fluctuations, according to Adeniyi, have raised concerns among stakeholders and significantly disrupted customs activities. However, he expressed optimism about the relative stability observed in recent days. Adeniyi also mentioned that the Service, in collaboration with the Minister of Finance, Wale Edun, has initiated periodic consultations with the CBN to mitigate the potential impact of exchange rate fluctuations on import activities.

Despite the challenges posed by the forex rate fluctuations, the NCS remains committed to optimizing its operations and ensuring efficiency in revenue generation through innovative platforms like the electronic auction system.

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