Onome Amuge
The Manufacturers Association of Nigeria (MAN) has urged the federal government to suspend the planned reintroduction of a four per cent Free-on-Board (FOB) import charge, warning that the measure would raise production costs, stoke inflation and undermine efforts to stimulate growth.
The levy, to be enforced by the Nigeria Customs Service from August 4, replaces the existing regime of a one per cent Comprehensive Import Supervision Scheme (CISS) charge and a seven per cent cost of collection fee with a single tariff.
Segun Ajayi-Kadir, MAN’s director-general, said the move came as a surprise given that the charge had previously been suspended following strong opposition from businesses and other stakeholders.
“Manufacturers were genuinely concerned that it would lead to a significant increase in the cost of raw materials, machines and spare parts that are not available locally and therefore have to be imported,” he said.
The association said a rapid assessment of the policy’s impact showed disquieting revelations for the sector, noting that higher costs for raw material imports, already exceeding N6.6 trillion in 2024 would ultimately be passed on to consumers and intensify inflation, which stood at 21.9 per cent in July.
Ajayi-Kadir added that the industry was already contending with a foreign exchange rate of more than N1,540 to the dollar, energy costs surpassing N1.1 trillion last year, and borrowing rates averaging above 35 per cent. “Introducing a blanket four per cent FOB charge under these prevailing tough economic conditions is not industry-friendly and certainly not development-oriented,” he said.
The group argued that the levy contradicts government initiatives such as the Renewed Hope Agenda and the National Development Plan 2021–25, both of which aim to lower production costs, deepen domestic value chains and diversify the economy.
MAN called for structured engagement between government, manufacturers and other private sector groups, warning that revenue generation should not take precedence over trade facilitation and industrial competitiveness.
