Manufacturers Call for Stakeholder Engagement to Determine Optimal Import Charges for Sustainable Growth
The Manufacturers Association of Nigeria (MAN) has applauded the Federal Government’s decision to suspend the reintroduced 4% Free-On-Board (FOB) charge on imports, which had been implemented on August 4, 2025. The move has been hailed as a significant relief for Nigeria’s manufacturing sector, which had voiced concerns over potential cost escalations and economic impacts.
Segun Ajayi-Kadir, the Director General of MAN, praised the government’s responsiveness, stating, “This suspension comes as a relief to our members and the broader manufacturing industry, which was genuinely worried about the adverse effects of the charge.” Ajayi-Kadir also commended the Nigeria Customs Service (NCS) for its ongoing reforms, expressing confidence that the agency would quickly communicate the directive to relevant commands and update the portal accordingly, including the full restoration of the B’Odogwu platform.
Highlighting the significance of the decision, Ajayi-Kadir remarked, “The reintroduction of the charge was a concerning move that could have led to increased costs for raw materials, machinery, and spare parts, most of which are imported. Its suspension is a vital step towards safeguarding the stability of our economy and protecting consumers from inflationary pressures.”
The association’s technical assessment, supported by consultations with over 2,500 members across ten sectors and more than 60 sub-sectors, revealed that the 4% FOB charge would have substantially increased input costs. This, in turn, risked fueling inflation—currently at 21.88% as of July 2025—and incentivizing informal cross-border sourcing and under-declaration.
MAN emphasized that maintaining the higher rate would have been counterproductive, undermining efforts to reduce production costs, deepen domestic value chains, and diversify Nigeria’s economy. “This decision allows manufacturers to remain competitive and promotes growth within the sector,” Ajayi-Kadir added.
Looking ahead, MAN called for an inclusive, independent assessment to evaluate the current charges and their implications on inflation, the cost of living for Nigeria’s approximately 230 million citizens, and the broader economy. The association also urged the government to convene stakeholder consultations to determine appropriate import charges that balance revenue needs with trade facilitation and productivity.
Furthermore, MAN recommended aligning customs policies with recent tax laws, ensuring that trade measures reinforce Nigeria’s overarching economic objectives. They also reaffirmed their commitment to collaborative engagement with government agencies to foster an enabling environment for industrialization and economic development.
As Nigeria continues to navigate economic reforms, MAN’s leadership remains optimistic that policies promoting manufacturing growth, reducing operational costs, and encouraging local production will pave the way for sustainable prosperity.