Manufacturers Association of Nigeria (MAN) has expressed concerns over the reintroduction of the four per cent Free On-Board Charge by the Nigeria Customs Service (NCS), effective August 4, 2025.

The reintroduction of the four per cent FOB Charge is expected to effectively end the regime of one per cent Comprehensive Import Supervision Scheme (CISS) and the seven per cent cost of collection fee.

But, MAN, in a statement issued by its Director General on Monday, argued that costs associated with the four per cent FOB charge would generally increase the import cost of raw materials and machinery, not available locally, above the N6.6 trillion recorded in 2024.

Besides, the association argued that the development could fuel inflation, already at 21.88 per cent as at July, this year, and undermine government’s efforts in that direction, since the cost would be passed on to consumers.

MAN also noted that in the West African sub-region, comparator economies such as Ghana, Côte d’Ivoire and Senegal, maintained targeted inspection or collection fees within the 0.5 per cent to one per cent FOB range, focusing high levies only on luxury or non-essential imports.

“As such, the Nigeria Customs Service’s unilateral imposition of a uniform four per cent FOB levy would raise the cost of doing business, incentivise informal cross-border sourcing, cargo diversion and encourage under-declaration,” it stated.

According to the association, the nation’s manufacturing sector is already contending with a high exchange rate of over ₦1540/$, an exorbitant alternative energy cost burden of over ₦1.1 trillion as of 2024 and an alarming average interest rate of above 35 per cent.

“Therefore, introducing a blanket four per cent FOB charge on the value of imports under the prevailing tough economic conditions is not industry-friendly and certainly not development-oriented.

“The introduction of the four per cent FOB charge with its attendant consequence, runs against the objectives of the relevant pillars of the Renewed Hope Agenda of Government, the National Development Plan 2021-2025, current industrial revolution initiatives and trade policy frameworks.

“All these efforts of the government seek to reduce the costs of local production, deepen domestic value chains addition and economic diversification. The reintroduction of this charge is antithetical to the expected outcomes of these laudable Government initiatives,” it added.

The association also faulted the NCS unilateral decision at reintroducing the levy, insisting the agency did not adequately dialogue with major stakeholders on the new charge, and, as a result, no guideline or clear directives, regarding the processes, procedures, cost implications and compliance requirements of the four per cent FOB charge, were given to operators.

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