Customs, manufacturers seal agreement on 4% FOB charge exemption

In a landmark move aimed at balancing industrial growth with efficient revenue collection, the Nigeria Customs Service (NCS) and the Manufacturers Association of Nigeria (MAN) have agreed on key exemptions from the recently suspended four per cent Free-On-Board (FOB) charge on imports.

Under the new framework, manufacturers importing raw materials, machinery, and spare parts — as well as importers of humanitarian, healthcare, and life-saving goods, and government projects covered by Import Duty Exemption Certificates (IDECs) — will be exempted from paying the 4% FOB charge.

Comptroller-General of Customs, Adewale Adeniyi, announced the exemptions after a joint consultative meeting with MAN executives in Lagos.

The decision followed the directive of the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who had earlier ordered the temporary suspension of the charge pending a review.

Adeniyi explained that the meeting was part of wider stakeholder engagement required under the Nigeria Customs Service Act 2023.

He urged manufacturers listed under tariff chapters 98 and 99 to apply for pre-release of consignments to avoid demurrage, while those yet to be onboarded would soon be included to enjoy the same reliefs.

He further stated that manufacturers who had already paid the charge would have such payments credited for future customs transactions once onboarded. Other exemptions, he said, apply to government projects with IDECs, commercial airline spare parts, and humanitarian or healthcare-related imports.

According to the Customs boss, the move demonstrates the federal government’s commitment to supporting critical sectors, particularly manufacturing, while ensuring a fair and efficient revenue system. He also revealed ongoing initiatives to simplify trade processes, including the development of a one-stop regulatory framework, reduction of multiple checkpoints, and deployment of digital platforms for faster clearance and risk assessment.

Both NCS and MAN agreed to institutionalise regular consultation mechanisms for policy dialogue, feedback, and periodic reviews.

These engagements, Adeniyi said, will help align customs policies with industrial realities, enhance compliance, and promote economic growth.

Adeniyi emphasised that the renewed partnership reflects the government’s vision for economic diversification through job creation, export promotion, and import substitution.

MAN President, Otunba Francis Meshioye, hailed the development as a major milestone that would lower production costs and enhance industrial competitiveness.

He, however, highlighted ongoing challenges such as multiple checkpoints, overlapping alerts, and technical glitches on the B’Odogwu clearance platform.

Meshioye praised Adeniyi’s leadership for bringing professionalism and innovation to the Service, noting that the strengthened collaboration between NCS and MAN would help create a more predictable and business-friendly trade environment.

Both institutions reaffirmed their commitment to continuous dialogue, improved customs efficiency, and policies that promote manufacturing excellence while safeguarding national revenue and economic stability.