Manufacturers Laud Suspension Of 4% Free On Board Import Fee

The Manufacturers Association of Nigeria (MAN) has commended the national authorities and the Minister of Finance & Coordinating Minister for the Economy, Wale Edun, implicit the caller suspension of the reintroduced 4 per cent Free-on-Board complaint connected imports, which came into effect connected August 4, 2025.

MAN’s director-general, Segun Ajayi-Kadir, said, ” This determination comes arsenic a alleviation to our members and the broader manufacturing sector, which has been anxiously acrophobic astir the imposition of the charge.”

He noted that the relation was assured that the Nigeria Customs Service (NCS), successful keeping with its ongoing commendable reforms, would swiftly pass the directive to each applicable commands, truthful that the complaint would spell disconnected its portal, portion they would  earnestly await the implicit restoration of the B’Odogwu platform.

According to Ajayi-Kadir, it has brought instant succour and encouragement to the Nigerian manufacturing assemblage and is large quality for the concern community.

“The curate conscionable saved our state from a self-inflicted terms escalation that could person unsettled the wide acknowledged stableness and repurposing this medication has achieved. Though it was meant to boost the much-needed authorities revenue, the complaint is akin to an ‘own goal’ successful a shot match.”

He added that the reintroduction of the complaint was rather concerning for us. We were genuinely apprehensive that it would pb to a important escalation successful the outgo of earthy materials, machinery, and spare parts that are not disposable locally and, therefore, person to beryllium imported.

The MAN DG disclosed that “We had outlined the ground for our objection to the charge, aft a method appraisal and extended consultation with our much than 2,500 members, who run successful 10 sectors and much than 60 sub-sectors crossed the country.

“It became evident that the outgo accusation of the 4 per cent FOB complaint was importantly higher than the combined effect of the subsisting 7 per cent surcharge and 1 per cent CISS, thereby impacting heavy connected the outgo of our inputs; the higher outgo volition beryllium passed connected to consumers and this volition substance inflation, which already stands astatine 21.88 per cent arsenic astatine July 2025, and undermine the prevailing conflict with precocious inflation; the comparable prevailing rates wrong the West African subregion scope betwixt 0.5 per cent to 1 per cent and truthful maintaining a 4 per cent FOB would straight skyrocket the outgo of doing business, incentivize informal transverse borderline sourcing, cargo diversion and promote underdeclaration.”

Ajayi-Kadir pointed retired that “we were convinced that a reversal was indispensable to boost the government’s efforts astatine reducing the costs of section production, deepening home worth concatenation addition, and economical diversification.

He added that the authorities should reappraisal the outcomes of the above-listed measures and guarantee their alignment with the tone and letters of the precocious introduced Tax Laws truthful that they are mutually reinforcing and not astatine variance.

He urged the national authorities to proceed implementing policies that beforehand industrialisation, trim the outgo of doing business, and promote home accumulation by eliminating assorted binding constraints that hamper manufacturing maturation and economical development.