The Producers Affiliation of Nigeria (MAN) has warned that Nigerians could quickly face greater costs for items following the Federal Authorities’s determination to reintroduce a 4% Free-on-Board (FOB) cost on imports.
The group in an announcement signed by its Director Common, Segun Ajayi-Kadir, stated the coverage, which took impact August 4, 2025, will worsen the working surroundings for producers, elevate manufacturing prices, and gas inflation.
“Actually, prices related to the 4% FOB cost will typically enhance the import value of uncooked supplies not out there domestically above the N6.6 trillion recorded in 2024.
“Clearly the price might be handed on to customers and this may gas inflation, which already stands at 21.88% as at July 2025, and undermine the prevailing wrestle with excessive inflation,” MAN acknowledged.
Inflationary strain looms
MAN cautioned that the extra prices will inevitably be handed on to customers, fueling inflation at a time when the speed already stands at 21.88% as of July 2025.
“Clearly, this may exacerbate the prevailing wrestle with excessive inflation,” the affiliation warned.
- It famous that producers are already grappling with powerful macroeconomic situations, together with alternate charges above N1,540/$, different power prices of over N1.1 trillion, and rates of interest averaging above 35%.
- The group additionally flagged issues over Nigeria’s regional competitiveness. It identified that peer economies resembling Ghana, Côte d’Ivoire, and Senegal keep inspection or assortment charges within the vary of 0.5%–1% FOB, with greater levies restricted to luxurious imports.
- A uniform 4% levy in Nigeria, MAN argued, dangers encouraging cargo diversion to neighboring ports, selling casual cross-border sourcing, and incentivizing under-declaration of imports.
Customs platform failures worsen scenario
Past the levy, MAN criticized persistent glitches on the Nigeria Customs Service (NCS) B’Odogwu platform, which have stalled cargo clearance, elevated demurrage for importers, and led to manufacturing facility stock-outs.
The affiliation lamented that the NCS didn’t adequately have interaction stakeholders earlier than introducing the brand new cost, inflicting additional uncertainty within the sector.
- The affiliation urged the Federal Authorities and the NCS to droop the 4% FOB cost till December 31, 2025, to permit for a full impression evaluation and stakeholder consultations.
- Within the interim, it really useful retaining the present 1% CISS + 7% assortment payment construction, which it says balances income wants with industrial competitiveness.
“The Nigerian manufacturing sector is struggling and shrinking. Introducing an extra blanket levy right now isn’t solely anti-industry but additionally runs opposite to authorities’s industrialization and diversification agenda,” it stated.
Backstory
The Comptroller-Common of Customs (CGC), Adewale Adeniyi, had not too long ago introduced that the Nigeria Customs Service will change a number of import-related levies with the only 4% FOB cost underneath a brand new income construction.
Based on CGC Adeniyi, the unified 4% FOB cost will get rid of the present Complete Import Supervision Scheme (CISS) and the 7% value of assortment levied on importers.
He defined that after the brand new coverage takes impact, importers will solely pay the 4% cost upfront, and no further levies might be utilized.