Stakeholders raise concern over Custom Service’s new FOB Charge

The recent introduction of a 4% Free On-Board (FOB) charge on imports by the Nigeria Customs Service (NCS) and the proposed 15% increase in port charges by the Nigerian Ports Authority (NPA) has sparked serious concerns among business leaders and policymakers.

Adewale Oyerinde, Director-General of the Nigeria Employers’ Consultative Association (NECA) warned that the new customs levy would impose an additional N2.84 trillion burden on businesses. He noted that industries that depend on imported raw materials will feel the impact the most, as the levy will push duty payments up by 80%, making local production more costly and less competitive.

Further speaking, Oyerinde said: “With a revenue target of N10 trillion set for the NCS in the 2025 budget by the National Assembly, this levy appears to be a desperate attempt to meet revenue projections at the expense of businesses and ordinary Nigerians. The consequences, he explained, will be severe—higher inflation, deeper poverty, and a business environment that discourages investment.

Segun Ajayi-Kadir, the Director-General of MAN (Manufacturers Association of Nigeria), also expressed deep worry over the planned 15% increase in port charges. He pointed out that businesses are already struggling with high operational costs, volatile exchange rates, and skyrocketing energy prices. Increasing port fees, he warned, would only add to these challenges, making Nigerian industries less competitive and pushing trade activities to neighboring countries where costs are lower. Instead of increasing tariffs, he urged the government to improve cargo clearance processes and remove unnecessary bureaucratic hurdles to generate revenue in a way that does not suffocate businesses.

Lastly, former Senate President Bukola Saraki described the policies as insensitive to the economic realities faced by Nigerians. He pointed out that importers will inevitably transfer these additional costs to consumers, making goods more expensive and increasing the financial burden on struggling households.