Manufacturers Association of Nigeria ,MAN, has strongly opposed the Nigeria Customs Service’s ,NCS, reintroduction of the four per cent Free on Board ,FOB, charge on imports, warning that the policy could severely disrupt the country’s manufacturing sector and worsen the cost of doing business.
The levy, which took effect on August 4, contradicts the Federal Government’s earlier suspension of the policy, according to MAN’s Director-General, Mr. Segun Ajayi-Kadir.
He stressed that the additional cost burden would have far-reaching implications for manufacturers who rely on imported raw materials, machinery, and spare parts not available locally.
Ajayi-Kadir disclosed that MAN conducted a rapid technical assessment following the sudden reintroduction of the levy. The findings, he said, revealed “unsettling implications” for the sector.
Contrary to claims that the new charge would streamline previous multiple levies, MAN maintained that the uniform four per cent FOB rate imposes a heavier financial burden on manufacturers than the combined effect of the existing seven per cent cost of collection and one per cent Comprehensive Import Supervision Scheme ,CISS, levy.
He argued that the measure was out of line with regional practices, noting that countries such as Ghana, Côte d’Ivoire, and Senegal maintain targeted inspection or collection fees within a 0.5% to 1% FOB range, reserving higher rates for luxury or non-essential goods.
“The unilateral imposition of a uniform 4% FOB levy will increase production costs, encourage informal cross-border sourcing, fuel under-declaration of goods, and divert cargo away from Nigerian ports”, Ajayi-Kadir warned.
The MAN chief therefore urged the Federal Government and the NCS to suspend implementation of the policy and extend the timeline to December 31, 2025. This, he explained, would allow for comprehensive stakeholder consultations and impact assessment ahead of the January 2026 commencement of newly introduced tax laws.
In the interim, Ajayi-Kadir recommended retaining the current one per cent CISS levy alongside the seven per cent cost of collection fee.
According to him, this would provide a balance between government revenue generation and the need to protect industrial competitiveness, while shielding Nigerian consumers from avoidable price hikes.
He emphasised that a hasty enforcement of the four per cent FOB charge risks undermining the survival of many businesses and could stifle economic growth, with implications for over 230 million Nigerians.
