The Nigeria Employers’ Consultative Association (NECA) has strongly opposed the 4 per cent Customs Administration Charge on Free on Board (FOB) value introduced by the Nigeria Customs Service (NCS) under the Nigeria Customs Service Act, 2023. NECA argues that the levy is poorly timed given current economic challenges and will have negative consequences for businesses and consumers.
NECA’s director-general, Mr. Adewale-Smatt Oyerinde, described the Nigerian business environment as already struggling with multiple taxes, policy uncertainties, and rising production costs. He warned that the additional charge would escalate costs for import-dependent businesses, drive inflation, and threaten jobs, ultimately worsening economic conditions for Nigerians.
Oyerinde criticized the Nigeria Customs Service for prioritizing revenue generation over trade facilitation, saying that its approach contradicts the government’s Ease of Doing Business agenda. He noted that with the NCS tasked with generating ₦10 trillion in revenue for the 2025 budget, the new levy appears to be a desperate attempt to meet targets at the expense of businesses and consumers.
He further argued that the charge undermines the work of the Presidential Fiscal Policy and Tax Reforms Committee, which aims to streamline Nigeria’s tax system. With Nigeria’s annual imports estimated at ₦71 trillion, the levy would impose an additional ₦2.84 trillion in costs, raising duty payments by up to 80 per cent for industries reliant on imported raw materials. This, he warned, would fuel inflation, deepen poverty, and weaken investor confidence.
NECA called for the immediate reversal of the charge and urged the government to engage stakeholders in finding a more sustainable and business-friendly approach to revenue generation.
