The Manufacturers Association of Nigeria (MAN) has expressed deep concern over the Nigeria Customs Service’s plan to re-introduce the 4% Free-on-Board Levy, citing its potential catastrophic impact on the manufacturing sector, business community, and the general public.

According to MAN’s Director General, Segun Ajayi-Kadir, the Federal Government has been urged to direct the Nigeria Customs Service to abandon the plan, warning that the manufacturing sector is already burdened beyond its resilience thresholds

He explained that the levy would add to the existing 1% Comprehensive Import Supervision Scheme (CISS) fee, further increasing the cost of doing business in Nigeria.

Stressing that the levy could trigger raw materials stock-outs, inflict higher demurrage costs, and worsen the competitiveness of Nigerian manufacturers.

Pointing out that with headline inflation already at a historic high of 34.8%, the levy would exacerbate the cost of locally produced items, affecting the average Nigerian’s disposable income.

MAN director general said the levy contradicts the ongoing Fiscal Policy and Tax Reforms aimed at eliminating multiple taxes and reducing tax burdens for households and businesses.

Ajayi-Kadir emphasized the need for improved trade facilitation to mitigate prevailing constraints and promote the sector’s optimum performance.