The Manufacturers Association of Nigeria (MAN) has commended the Federal Government for suspending the 4% Free-on-Board (FOB) charge on imports, citing relief for the manufacturing sector and the broader economy.
According to MAN’s Director-General, Segun Ajayi-Kadir, the suspension has brought “instant succour and encouragement to the manufacturing community in Nigeria” and is “great news to the business community”.
The 4% FOB charge would have led to a significant escalation in the cost of raw materials, machinery, and spare parts, which would have been passed on to consumers, fueling inflation.
MAN believes that the charge was akin to an “own goal” in a football match, as it would have boosted government revenue at the expense of the manufacturing sector’s competitiveness.
The association reiterated its commitment to working with the government and the Nigeria Customs Service (NCS) to streamline trade processes, reduce the cost of doing business at the port, and enhance fiscal transparency.
MAN called for an inclusive and independent assessment to determine the adequacy of existing charges and their impact on the manufacturing sector.
The suspension is expected to prevent a self-inflicted price escalation that could have unsettled the stability achieved under the current administration.
MAN believes that predictable and competitive trade charges are essential for sustainable growth, job creation, and safeguarding the well-being of over 230 million Nigerians.
The manufacturers body urged the Federal Government to continue implementing policies that promote industrialization, reduce the cost of doing business, and encourage domestic production.
The association stated that it remains committed to working collaboratively with the government to create a conducive business environment that fosters sustainable economic growth and development.
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