The Nigeria Customs Service's (NCS) implementation of a four percent charge on all imported consignments has sparked widespread criticism from manufacturers, economists, and business leaders who warn the policy could deepen the country's economic challenges.
The new charge, embedded in the Comprehensive Import Supervision Scheme (CISS), increased from one percent to four percent last week. According to NCS calculations, the four percent charge on the Free On Board (FOB) value of imports is expected to generate N2.84 trillion annually, based on the country's estimated annual imports of N71 trillion.
The Nigeria Employers' Consultative Association (NECA) warned that the new policy would drive duty payments up by 80 percent for industries dependent on imported raw materials. NECA's Director-General, Adewale-Smatt Oyerinde, cautioned that the levy would significantly inflate production costs and erode business competitiveness.
"This additional financial burden on import-dependent businesses will escalate production costs, fuel inflation, and threaten jobs. Ultimately, consumers will bear the brunt of higher prices, worsening an already challenging economic climate," Oyerinde stated.
The Chairman of the Ogun State chapter of the Manufacturers Association of Nigeria (MAN), George Onafowokan, described the charge as "ill-conceived" and called for its immediate suspension. "A 4 percent on FOB is a disaster waiting to happen," said Onafowokan, who is also the CEO of Coleman Technical Industries Limited. "It will put unnecessary increase in the cost of raw materials and every material brought into this country."
Former Senate President Bukola Saraki joined the criticism, questioning whether the Customs service requires an additional N2.84 trillion annually for operations, noting they already have a budget and receive incentives on collected duties. Saraki emphasized that the fee applies to all imports, not just luxury goods, potentially affecting industries importing raw materials with duties as low as 5 percent.
The timing of the new charge has been particularly criticized, as it coincides with the Nigeria Ports Authority's implementation of a 15 percent increase in tariff. Importers already face numerous charges, including a 7 percent port development levy and various handling fees.
Responding to the concerns, NCS National Public Relations Officer Abdullahi Aliyu Maiwada defended the charge as compliant with the Nigeria Customs Service Act (NCSA) 2023. He stated that the Act, which replaces the Customs and Excise Management Act (CEMA), resulted from extensive consultations with industry stakeholders.
"The NCS acknowledges concerns raised by stakeholders," Maiwada said, adding that "extensive consultation is ongoing with the Federal Ministry of Finance to address all agitations raised by our esteemed stakeholders."
Critics also noted that the new charge contradicts ongoing tax reform efforts led by the Presidential Fiscal Policy and Tax Reforms Committee, which aims to harmonize taxes and support business sustainability. NECA has called for an immediate reversal of the levy and urged the government to engage with stakeholders in developing a more sustainable approach to revenue generation.
