EXCLUSIVE: Manufacturers Association of Nigeria (MAN) Flays Customs’ Re-Introduction Of 4% FoB Charge

The Manufacturers Association of Nigeria (MAN) has raised the alarm the Nigeria Customs Service (NCS) re-introduction ofthe controversial four per cent Free-on-Board (FoB) charge on imports.

Following this re-introduction, MAN has predicted dooms day ahead for goods clearance at the nation’s ports, affirming that it would lead to a significant increase in the cost of raw materials, machine and spare parts that are not available locally and have to be imported.

Equally, MAN said that the prolonged glitch with the B’Odogwu platform of the Nigeria Customs Service (NCS) had negatively impacted the process of clearing goods at the ports with members of the association now incurring demurrage and suffering stock-out in their factories.

The Director-General of MAN, Mr. Segun Ajayi-Kadir, who made this known in a release yesterday in Lagos, said that many manufacturers were worried over the re-introduction of the controversial and initially suspended four per cent FOB charge. Ajayi-Kadir stated: “The Manufacturers Association of Nigeria (MAN) is gravely concerned over the apparent reintroduction of the four per cent Free-on-Board charge on imports, effective August 4, 2025.

“According to reports, the regime of one per cent Comprehensive Import Supervision Scheme (CISS) and the seven per cent cost of collection fee end with the introduction of a single four per cent FOB charge.

“This came as a surprise, as the charge was commendably suspended by the Federal Government, following the overwhelming condemnation of the charge by virtually all stakeholders, who rightly opined that it was illtimed and would certainly lead to an instant escalation of the cost of imports.

“The sudden re-commencement of the 4% FOB charge made MAN to conduct a rapid technical assessment to reconfirm the concerns of manufacturers and ascertain the implications of the charge on the sector.

The outcomes show disquieting revelations that portend severe implications for the manufacturing sector. MAN is therefore constrained to list the major outcomes, which form the basis for our continued objection and appeal for a cessation of implementation of the 4% FOB Charge by the NCS.”

On the prolonged glitch of the B’Odogwu platform, the MAN DG said: “We deeply appreciate the assurance of the leadership of NCS that efforts are being intensified to restore effective operation of the platform.

However, the problem persists and the attendant hardship for manufacturers and other users continues to mount. “For the record, MAN is in support of the efforts of the Government to streamline trade processes, reduce the cost of doing business at the port and enhance fiscal transparency.

“This is because it resonates with the kernel of the Association’s advocacy for a transparent, efficient and friendlier trade facilitation ecosystem that is more service-centric than revenue driven. We are, however, concerned that the prevailing situation is achieving the exact opposite of these progressive ideals.”