By Newsshelve correspondent.
The Manufacturers Association of Nigeria (MAN) has expressed deep concern over the reintroduction of the 4% Free-on-Board (FOB) charge on imports by the Nigeria Customs Service (NCS), effective August 4, 2025.
According to MAN, the charge is exceedingly higher than the combined effect of the 7% surcharge and 1% Comprehensive Import Supervision Scheme (CISS) levy.
MAN conducted a rapid technical assessment and found that the 4% FOB charge would result in a significant net increase in cost and exacerbate the financial burden on manufacturers, particularly those importing raw materials and machinery.
The association noted that the charge would fuel inflation, undermine the struggle with high inflation, and incentivize informal cross-border sourcing, cargo diversion, and under-declaration.
MAN compared Nigeria’s import charges with those of other West African countries, such as Ghana, Côte d’Ivoire, and Senegal, and found that they have maintained targeted inspection or collection fees within the 0.5%-1% FOB range.
The association argued that the NCS’s unilateral imposition of a uniform 4% FOB levy would raise the cost of doing business in Nigeria.
MAN has called on the Federal Government and the NCS to:
– Halt the implementation of the 4% FOB charge and conduct an impact assessment and inclusive stakeholders’ consultation
– Retain the current 1% CISS + 7% cost of collection fee, which balances revenue generation with industrial competitiveness
– Establish a well-structured engagement with relevant stakeholders for regular dialogue on trade facilitation and customs-related issues
– Prioritize trade facilitation over revenue generation and support the manufacturing sector
MAN emphasized that the Nigerian manufacturing sector is struggling and shrinking, and that the future of the economy depends on its capacity to upscale production, improve export of manufactured products, and enhance steady inflow of foreign exchange and investment.
The association urged the government to address the challenges limiting the performance of the sector with appropriate interventions.
Comment here