The Manufacturers Association of Nigeria (MAN) has strongly objected to the Nigeria Customs Service’s reintroduction of a 4% Free-on-Board (FOB) charge on imports, effective August 4, 2025.

MAN’s Director-General, Segun Ajayi-Kadir, described the move as “not industry-friendly and certainly not development-oriented”.

According to Ajayi-Kadir, the charge will lead to a significant increase in the cost of raw materials, machinery, and spare parts, which will exacerbate the financial burden on manufacturers. This, in turn, will fuel inflation, currently standing at 21.88% as of July 2025, and undermine the government’s efforts to reduce the cost of living.

He explained that the 4% FOB charge will result in a higher cost burden for manufacturers compared to the combined effect of the 7% surcharge and 1% Comprehensive Import Supervision Scheme (CISS) levy.

The charge will increase the import cost of raw materials not available locally above N6.6 trillion, which will be passed on to consumers, fueling inflation.

The uniform 4% FOB levy will raise the cost of doing business, incentivizing informal cross-border sourcing, cargo diversion, and under-declaration.

Ajayi Kadiri recommend halting of the implementation of the 4% FOB charge and conduct an impact assessment and inclusive stakeholders’ consultation.

Also retain the current 1% CISS + 7% cost of collection fee, which balances revenue generation with industrial competitiveness. And establish a well-structured engagement with relevant stakeholders for regular dialogue on trade facilitation and customs-related issues.