By Aisha Muhammad Magaji
The Nigeria Customs Service (NCS) has suspended the controversial 4% Free-on-Board (FOB) import charge after mounting pressure from manufacturers and trade associations, paving the way for fresh consultations on its implementation under the Nigeria Customs Service Act (NCSA) 2023.
The levy, which was to replace the existing 1% Comprehensive Import Supervision Scheme (CISS), was set at a minimum of 4% of the value of imported goods. Customs had argued that it was necessary to sustain revenue generation and finance modernization projects across Nigeria’s ports.
The Manufacturers Association of Nigeria (MAN) strongly opposed the charge, warning it would increase production costs and worsen inflation.
MAN’s Director-General, Segun Ajayi-Kadir, criticized the move.
He said, “The sudden reintroduction of this charge without proper consultation with stakeholders would have dire consequences on manufacturers who depend heavily on imported inputs.”
Ajayi-Kadir explained that the levy, in its current form, would undermine Nigeria’s competitiveness and risk pushing more manufacturers out of business.
Customs, however, maintained that the charge was backed by the law and aimed at strengthening trade facilitation while securing a sustainable revenue base.
Spokesperson Abdullahi Maiwada explained the decision.
He said, “The Service remains committed to developing a framework that balances revenue generation with trade facilitation. We want a system that works for government, businesses, and the wider economy.”
Analysts warn that a return of the 4% FOB charge could raise consumer prices by inflating import costs, worsen supply chain challenges, and make Nigerian ports less competitive compared to regional rivals such as Ghana and Togo.
Stakeholders are also concerned that higher charges could fuel smuggling and further pressure the naira.
Customs has ordered that all import declarations made during the suspended rollout be cancelled and refiled without the FOB levy. It also promised to hold wider consultations with manufacturers, trade groups, and the Federal Ministry of Finance before setting a new date for the policy.
Industry watchers say the outcome of these talks will determine whether the levy is scrapped, scaled down, or reintroduced in its original form.
