In a decisive move to bolster Nigeria’s industrial growth and reduce the cost of doing business, the Nigeria Customs Service (NCS) and the Manufacturers Association of Nigeria (MAN) have formalized a strategic agreement to exempt manufacturers from the contentious 4% Free-on-Board (FOB) charge and advance trade facilitation reforms.
The agreement was reached during a high-level meeting between Comptroller-General of Customs, Bashir Adewale Adeniyi MFR, and MAN President, Francis Meshioye FR. This engagement followed the Ministry of Finance’s directive to suspend the 4% FOB levy and initiate stakeholder consultations under the Nigeria Customs Service Act 2023.
The agreement include exemption of manufacturers importing raw materials, machinery, and spare parts under Chapters 98 and 99 of the Customs Tariff from the 4% FOB charge.
Additionally, manufacturers not currently listed under these chapters will be onboarded to benefit from the exemption.
Also manufacturers who have already paid the FOB charge will receive credits for future use once onboarded. Humanitarian aid, healthcare imports, government projects, and commercial airline spare parts are also exempted.
On Trade Facilitation Enhancements,
operational bottlenecks such as multiple checkpoints, system alerts, and technical issues on the B’Odogwu platform will be addressed.
Initiatives like the Authorised Economic Operator (AEO) programme, Advance Ruling, and Time Release Studies to improve customs efficiency will be promoted.
MAN praised the AEO scheme and urged for transparent admission guidelines to encourage wider participation.
The agreement will also see to the establishment of a formal consultation framework between NCS, MAN, and the Ministry of Finance for ongoing dialogue, feedback, and policy review, as well as commitment to aligning customs operations with Nigeria’s industrial and economic development goals.
“This partnership reflects our shared commitment to economic transformation through industrial growth, job creation, and export competitiveness,” said CGC Adeniyi.
“Constructive engagement like this is vital for building a predictable and supportive customs environment,” added MAN President Meshioye.