Manufacturers Call for Suspension of Reintroduced 4% Customs Import Charge
The Manufacturers Association of Nigeria (MAN) has expressed strong opposition to the recent reintroduction of the 4% Free-on-Board (FOB) charge by the Nigeria Customs Service (NCS), effective August 4, 2025. The association warns that this move could significantly escalate the cost of imports, adversely affecting local manufacturing and the broader economy.
In a statement signed by Segun Ajayi-Kadir, Director General
Manufacturers Association of Nigeria (MAN), the association disclosed its grave concern over the decision, which appears to reverse prior suspensions following widespread stakeholder condemnation. The association highlighted that the new 4% charge, replacing the previous combined charges of 1% CISS and 7% collection fee, is more burdensome, especially for high-value imports such as raw materials and machinery vital to Nigeria’s manufacturing sector.
“Contrary to the claim of streamlining charges, the 4% FOB levy results in a higher cost burden for manufacturers,” said Segun Ajayi-Kadir, Director General of MAN. “This will likely lead to increased prices of raw materials, inflationary pressures, and reduced competitiveness.”
MAN also criticized the Customs Service’s ongoing technical glitches with the B’Odogwu platform, which has hampered efficient cargo clearance, leading to delays, demurrage costs, and stock-outs in factories. While NCS leadership has assured efforts to resolve these issues, the problems persist, further complicating trade facilitation.
Comparing Nigeria to regional peers like Ghana and Côte d’Ivoire, which maintain lower inspection fees, MAN argued that Nigeria’s uniform 4% charge incentivizes informal cross-border trade, cargo diversion, and under-declaration, undermining formal trade processes.
Given Nigeria’s challenging economic environment—characterized by a high exchange rate, soaring energy costs, and elevated interest rates—MAN urges the government to reconsider the reintroduction of the charge. They advocate for a stakeholder-driven review process, retention of the current charges until December 2025, and enhanced engagement between government agencies and the private sector.
“To safeguard the future of Nigeria’s manufacturing sector, trade policies must prioritize facilitation over revenue collection,” Ajayi-Kadir emphasized. “A resilient manufacturing sector is essential for economic diversification, job creation, and sustainable growth.”
MAN concluded by calling on the government to address these technical and policy issues to ensure Nigeria’s economic revival and industrial competitiveness.