Kehinde Fajobi
The Nigeria Customs Service’s (NCS) recent implementation of a four per cent charge on all imported goods has sparked widespread criticism from manufacturers, economists, and industry experts.
Stakeholders warn that the increase, introduced under the Comprehensive Import Supervision Scheme (CISS), will further strain businesses and drive inflation.
The new charge, which took effect last Tuesday, raises the CISS from one per cent to four per cent, with the NCS citing the Nigeria Customs Service Act (NCSA) 2023 as its legal backing.
According to Customs, the charge, calculated on the Free On-Board (FOB) value of imports, is expected to generate ₦2.84 trillion annually.
However, manufacturers and importers argue that the charge adds to an already long list of levies imposed at ports. In addition to statutory import duties, businesses must contend with a seven per cent port development levy, various terminal handling fees, and a ₦100,000 electronic call-up system charge per truck.
Chairman of the Ogun State chapter of the Manufacturers Association of Nigeria (MAN), George Onafowokan, described the policy as “ill-conceived” and called for its immediate suspension, in an interview with Daily Trust.
“A four per cent FOB charge is a disaster waiting to happen,” he said. “It’s something that should be suspended immediately. This will put unnecessary pressure on inflation, increase the cost of raw materials, and push prices up for consumers.”
He argued that the government’s recent efforts to stabilise the naira could be undermined by the policy.
“We need to build on the progress made, not take steps backward. This charge is like shooting ourselves in the foot,” he added.
Professor of Economics, Sheriffdeen Tella, also urged the government to suspend the charge, warning that it would worsen inflation and production costs.
“Well, it will increase the cost of those goods, and they will become more expensive because the exchange rate is already affecting them. The 4% charge will add to that. The issue of wanting to tame inflation will not work,” he said.
Former Senate President, Bukola Saraki, criticised the charge in a post on X (formerly Twitter), questioning its necessity and impact on struggling Nigerians.
“With our annual imports estimated at ₦71 trillion, the new four per cent charge will generate ₦2.84 trillion. Does this mean Customs needs an additional ₦2.84 trillion annually to operate?” he asked.
He warned that the cost would ultimately be transferred to consumers, worsening economic hardship.
“This new fee is not even restricted to luxury goods but applies across all imports, including raw materials for industries. How can this make sense or support ease of doing business?” he added.
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Saraki urged the government to “urgently reconsider” the policy, a call echoed by many Nigerians who believe the charge will deepen economic hardship.
Responding to criticisms, NCS spokesperson Abdullahi Aliyu Maiwada defended the charge, saying it aligns with the NCSA 2023, which replaced the old Customs and Excise Management Act.
“In line with Section 18(1) of NCSA 2023, the NCS is implementing a four per cent charge on the FOB value of imports. This charge is essential to driving the effective operation of the service,” he said.
On concerns raised by businesses, he assured stakeholders that discussions were ongoing with the Federal Ministry of Finance to address their grievances.