The Manufacturers Association of Nigeria (MAN) has criticised the Nigeria Customs Service (NCS) for reintroducing a four per cent Free on Board (FOB) charge, which took effect on August 4.
In a statement on Monday, MAN Director-General Segun Ajayi-Kadir said the decision contradicts the government’s earlier suspension of the levy and would significantly increase production costs, particularly for companies importing raw materials, machinery, and spare parts unavailable locally.
He explained that MAN conducted a rapid assessment following the reintroduction and found that the impact on manufacturers could be severe. “The idea that the charge streamlines previous multiple charges and reduces cargo clearance costs does not reflect reality. The cost of the four per cent charge on a manufacturing company is enormously higher than the combined effect of the seven per cent surcharge and one per cent Comprehensive Import Supervision Scheme (CISS) levy,” Ajayi-Kadir said.
He added that other West African countries, including Ghana, Côte d’Ivoire, and Senegal, apply targeted inspection or collection fees of between 0.5 per cent and one per cent FOB, with higher levies only imposed on luxury or non-essential imports.
According to him, a uniform four per cent FOB levy in Nigeria would raise the cost of doing business, encourage cargo diversion, promote under-declaration, and drive manufacturers toward informal cross-border sourcing.
MAN urged the Federal Government and the NCS to suspend the implementation and extend the timeline to December 31, allowing for consultations and a full impact assessment. This, Ajayi-Kadir said, would align with the January 2026 rollout date for recently introduced tax laws.
In the meantime, MAN proposed that the customs service retain the existing one per cent CISS and seven per cent cost of collection fee to balance revenue generation with industrial competitiveness. Ajayi-Kadir warned that failure to do so could trigger avoidable price hikes that would affect more than 230 million Nigerians.
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