Former Senate President, Dr. Abubakar Bukola Saraki, criticizes the Federal Government over its newly implemented 4% customs administration charge on the Free On-Board (FOB) value of imports, arguing that it will worsen economic conditions for Nigerians.
In a statement on his official X handle, Saraki questions the necessity of the policy and the financial strain it imposes on businesses and consumers.
“With Nigeria’s annual imports estimated at N71 trillion, this 4% charge amounts to N2.84 trillion. Does the Nigeria Customs Service really need an extra N2.84 trillion annually to operate, considering it already receives budget allocations and a share of total customs duties collected?” he asks.
The Nigeria Customs Service begins enforcing the new charge in line with the Nigeria Customs Service Act (NCSA) 2023. Saraki warns that the policy will raise import costs, leading to higher prices for consumers and businesses.
“This charge applies to all imports, including essential raw materials. For industries that pay only 5% in import duties, the new 4% fee effectively increases costs by 80% in administrative fees alone. How does this support the government’s commitment to improving the ease of doing business?” he questions.
Saraki describes the policy as ill-timed, given Nigeria’s economic struggles. He urges the government to focus on measures that promote economic stability rather than policies that increase financial burdens on citizens.
Saraki demands an urgent reversal of the policy, stressing its negative impact on Nigerians.
“The government must immediately suspend this charge. Nigerians are already facing enough economic challenges,” he states.
Key Points
- New Import Charge: FG imposes a 4% customs administration fee on FOB value.
- Economic Impact: Saraki warns it will increase costs for businesses and consumers.
- Revenue Concerns: Questions the necessity of an additional N2.84 trillion in customs revenue.
- Call for Reversal: Urges the government to withdraw the policy.
The introduction of this charge sparks debate on the government’s revenue strategy and its impact on Nigeria’s economy.
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