CBN Revises Customs Duty Exchange Rate Amid Naira's Sustained Appreciation
The Central Bank of Nigeria (CBN) has implemented a significant adjustment to the exchange rate used for calculating customs duties at the nation's air and seaports. This strategic move comes as the Nigerian naira continues to demonstrate remarkable strength against the United States dollar in the official foreign exchange market.
Naira's Impressive Performance in January
According to data released from the Nigerian Foreign Exchange Market (NFEM), the naira concluded the month of January trading at N1,386 per US dollar. This represents one of the currency's most robust performances in nearly two years, signaling a substantial shift in market sentiment following extended periods of volatility. The closing rate marks a significant recovery that has captured the attention of economic analysts and market participants across Nigeria.
External Reserves Reach Eight-Year High
Financial experts attribute the naira's remarkable rebound primarily to Nigeria's strengthening external reserves position, which recently climbed to its highest level in eight years. These enhanced reserves have substantially boosted confidence in the CBN's capacity to support the national currency while simultaneously improving liquidity within the official foreign exchange window. The improved reserves position serves as a critical buffer against external economic pressures.
Updated Customs Duty Exchange Rate Details
Data obtained from the Nigeria Customs Service trade portal reveals that the CBN has officially fixed the exchange rate for customs duty clearance at N1,451.634 per US dollar. This adjustment translates to reduced naira payments for importers when clearing goods through Nigerian ports, offering meaningful financial relief during a period when import costs and general inflation remain elevated across various sectors of the economy.
Weekly and Daily Market Performance Analysis
At the official NFEM trading window, the US dollar closed at N1,386.55 on the final trading day of January. This closing rate represents a gain of N35.08, equivalent to a 2.53 percent appreciation for the naira compared to the N1,421.63 recorded at the conclusion of the previous week. Trading data from the CBN indicates the currency opened the week at N1,418.95 before strengthening consistently throughout the trading period.
On a week-on-week basis, the naira appreciated by N32.40, representing a 2.34 percent gain. Furthermore, the currency demonstrated daily strength on Friday, advancing by N10.44 or 0.75 percent from Thursday's closing rate of N1,396.99. This consistent upward movement highlights improving market confidence and enhanced liquidity within Nigeria's official foreign exchange framework.
Market Confidence and Future Projections
The sustained appreciation of the naira points toward growing confidence and stability within Nigeria's foreign exchange market. Economic analysts had previously projected a stronger naira by January's conclusion, citing robust external reserves and more stringent foreign exchange management policies as primary drivers behind the currency's recovery trajectory.
Looking ahead to 2026, projections from financial institutions suggest the naira could trade within a range of N1,350 to N1,450 per US dollar. These forecasts consider multiple economic variables including global oil prices, foreign exchange inflows, domestic inflation trends, and policy consistency from monetary authorities. The current market developments indicate Nigeria's currency may be entering a period of enhanced stability and predictable valuation.
