• He says that charges can increase import cost in raw materials above N6.6trn
The Nigeria manufacturers association (MAN) has expressed concern about the reintroduction of the free -percentage of four percent by the Nigeria Customs Service (NCS), as of August 4, 2025.
The reintroduction of the FOB position of four percent is expected to effectively end the regime of the integral import supervision scheme (CISS) and the cost of seven percent of the collection rate.
But, the man, in a statement issued by its general director on Monday, argued that the costs associated with the FOB position of four percent would generally increase the import cost of raw materials and machinery, not available locally, above the N6.6 billion registered in 2024.
In addition, the association argued that development could feed inflation, already 21.88 percent in July, this year, and undermine government efforts in that direction, since the cost would be transmitted to consumers.
The man also pointed out that in the Western Africa subregion, comparative economies such as Ghana, Ivory and Senegal coast, maintained specific inspection or collection rates within the FOB range of 0.5 percent to one percent, focusing high taxes only on luxury or non -subsidiary imports.
“As such, the unilateral imposition of the Nigerian customs service of a four percent FOB uniform tax would increase the cost of doing business, encourage the informal cross -border supply, the charge of load and foster the sub -disclaration,” he said.
According to the association, the manufacturing sector of the Nation is already affirmed with a high change rate of more than ₦ 1540/$, a load of exorbitant alternative energy cost of more than ₦ 1.1 billion from 2024 and an average average interest rate of more than 35 percent.
“Therefore, the introduction of a four percent FOB load on the value of imports under difficult economic conditions is not friendly with the industry and is certainly not a development oriented.
“The introduction of the FOB load of four percent with its assistant consequence, extends against the objectives of the relevant pillars of the renewed agenda of Government’s hope, the National Development Plan 2021-2025, the current initiatives of the Industrial Revolution and the Mark of Commercial Policies.
“All these efforts of the government seek to reduce the costs of local production, deepen the addition of domestic value chains and economic diversification. The reintroduction of this position is antithetic to the expected results of these praiseable government initiatives,” he added.
The association also criticized the unilateral decision of the NCS when reintroducing the tax, insisting that the agency does not properly dial with the main stakeholders about the new position and, as a result, no guideline or clear directives were granted, with respect to the processes, procedures, implications of costs and compliance requirements of four percent of FOB, to the operators.
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