For years, Nigerian businesses have navigated the turbulent waters of import costs, battling currency instability and high duties.
But now, a fresh challenge looms.
The Nigeria Customs Service has introduced a four per cent charge on the Free On-Board (FOB) value of imports, adding yet another layer of expense to an already costly process.
Comptroller-General Bashir Adeniyi said the Nigeria Customs Service introduced the levy on the value of imported goods—including transportation costs up to the port of loading—to “enhance operational efficiency.”
However, businesses already struggling with high costs see it as yet another financial strain.
Nigeria relies heavily on imports, with machinery, refined petroleum, vehicles, and pharmaceuticals among the top imports.
For a ₦30 million car, the new charge adds ₦1.2 million, increasing the Cost, Insurance, and Freight (CIF) value, which affects import duties and VAT—ultimately raising consumer prices.
The Setback
The same issue affects industrial equipment.
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Companies that rely on heavy machinery face major setbacks due to the additional cost.
In the pharmaceutical sector, despite an executive order exempting certain medicines from import duties, the FOB charge still applies, driving up the cost of essential drugs.
Concerns have also emerged over double charges, as importers must still pay the existing one percent Comprehensive Import Supervision Scheme (CISS) fee.
The Association of Nigeria Licensed Customs Agents (ANLCA) has called for the charge’s withdrawal, warning of inflationary effects.
The NCS says discussions are ongoing with the Federal Ministry of Finance to address concerns, urging stakeholders to support the measure under the Nigeria Customs Service Act 2023.
