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Manufacturers Kick As Govt Reintroduces 4% Import Fee, Warn Of Higher Costs
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MANUFACTURERS KICK AS GOVT REINTRODUCES 4% IMPORT FEE, WARN OF HIGHER COSTS

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The decision by the Nigeria Customs Service (NCS) to reintroduce a 4% Free on Board (FOB) fee on imports has sparked outrage among manufacturers, who say the move will further cripple industries already struggling under rising costs.

 

The levy, which was first introduced earlier this year but suspended in February after public backlash, quietly returned on August 4, 2025.

Reacting to the development, the Manufacturers Association of Nigeria (MAN) described the policy as ill-timed and damaging.

 

In a statement on Monday, Segun Ajayi-Kadri, Director General of MAN, said the uniform fee would hike the cost of importing essential raw materials, machinery, and spare parts not available locally.

 

“The claim that the 4% fee streamlines costs does not reflect reality. In truth, the impact on manufacturers is far heavier than the combined charges it supposedly replaces,” Ajayi-Kadri said.

 

According to MAN, the fee will inevitably push up the prices of goods and services, worsen inflation, and discourage legitimate trade.

Ajayi-Kadri also pointed out that other West African countries like Ghana, Côte d’Ivoire, and Senegal keep such charges at between 0.5% and 1%, with higher levies only applied to luxury items — not across the board.

 

He warned that the policy could encourage cargo diversion, smuggling, and under-declaration as businesses look for ways to cut costs.

 

MAN urged the government to suspend the fee until December 31, 2025, to allow for wider consultations and an impact assessment.

 

For many manufacturers, the fear is simple: another layer of cost that could make Nigerian goods even less competitive, both at home and abroad.

"This represents a significant development in our ongoing coverage of current events."
— Editorial Board

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