By Ifeoma Ikem
The Nigeria Customs Service (NCS) and the Manufacturers Association of Nigeria (MAN) have reached an agreement to exempt manufacturers from the recently suspended 4% Free-on-Board (FOB) charge.
The decision followed a meeting between the Comptroller-General of Customs, Bashir Adewale Adeniyi, MFR, and the President of MAN, Francis Meshioye, FR, held in Lagos.
The move aligns with a directive from the Federal Ministry of Finance suspending the 4% FOB charge and calling for wider stakeholder engagement under the Nigeria Customs Service Act 2023.
Under the agreement, manufacturers importing raw materials, machinery, and spare parts under Chapters 98 and 99 of the Customs Tariff will be fully exempted from the charge.
The exemption is also expected to be extended to additional manufacturers not currently listed under those tariff chapters, pending onboarding.
To fast-track the onboarding process, NCS, MAN, and the Ministry of Finance will conduct tripartite consultations aimed at simplifying exemption procedures.
Manufacturers who have already paid the 4% FOB charge will receive credits that can be applied to future import transactions once they are formally onboarded.
Exemptions have also been extended to humanitarian goods, healthcare-related imports, government project consignments, and commercial airline spare parts.
During the meeting, MAN highlighted several challenges affecting the sector, including multiple checkpoints, persistent system alerts, and technical hitches on the B’Odogwu customs platform.
MAN noted that these issues have reduced manufacturing competitiveness and called for urgent reforms to improve ease of doing business in the sector.
The NCS responded by reaffirming its commitment to trade facilitation through ongoing initiatives like the Authorised Economic Operator (AEO) programme, Advance Ruling, and Time Release Studies.
MAN expressed strong support for the AEO programme and requested that clear admission guidelines be developed to encourage wider industry participation.
Both parties agreed to establish a formal consultation framework to ensure regular dialogue, feedback, and periodic reviews of customs processes affecting manufacturers.
Comptroller-General Adeniyi said the agreement demonstrated a shared commitment to economic transformation through industrial growth, job creation, and export promotion.
MAN President Meshioye described the engagement as a crucial step toward building a customs system that supports sustainable manufacturing and long-term economic development.
