Manufacturers oppose reintroduced 4% FOB charge

The Manufacturers Association of Nigeria (MAN) has rejected the Nigeria Customs Service’s reintroduction of a four per cent Free on Board (FOB) charge, which took effect on August 4, warning it could cripple the sector.

MAN’s Director-General, Segun Ajayi-Kadri, said on Monday in Lagos that the move contradicts government’s earlier suspension of the levy and would drastically increase the cost of importing raw materials, machinery, and spare parts unavailable locally.

According to him, a quick technical assessment by MAN revealed the charge would be more burdensome than the combined effect of the previously scrapped seven per cent surcharge and one per cent Comprehensive Import Supervision Scheme (CISS) levy.

“In Ghana, Côte d’Ivoire, and Senegal, inspection or collection fees are capped at 0.5–1% FOB, with higher charges limited to luxury goods.

Imposing a uniform four per cent levy in Nigeria will raise production costs, fuel cargo diversion, and encourage under-declaration,” Ajayi-Kadri said.

He urged the Federal Government and Customs to suspend implementation and shift enforcement to December 31, 2025, to allow for stakeholder consultations and alignment with new tax laws taking effect in January 2026.

In the interim, he recommended retaining the current one per cent CISS plus seven per cent cost of collection fee, which he argued would balance revenue generation with industrial competitiveness and prevent price hikes affecting over 230 million Nigerians.