With the Nigeria Customs Service (NCS) still keeping local manufacturers guessing of its promised HS Code levy that would include them to join in the list of some key sectors already cleared by the government from duty exemption certificates, under the concessions provided in Chapters 98 and 99 of the customs tariff from the 4% Free-on-Board (FOB) levy, members of the Organised Private Sector (OPS), have warned of more imminent volatilities in the already fragile nation’s manufacturing sector, if the 4% FOB levy is not totally removed from the sector urgently.
Besides, the federal government had exempted manufacturers importing raw materials, machinery, and spare parts under the concessions provided in Chapters 98 and 99 of the Customs Tariff from the 4% Free-on-Board (FOB) levy recently introduced by the Nigeria Customs Service (NCS).
Also, government projects with duty exemption certificates, humanitarian imports, healthcare related goods, and commercial airline spare parts have been excluded from the levy.
Following this, the private sector group, which comprises business membership organizations, namely: Manufacturers Association of Nigeria (MAN); Nigerian Association of Chambers of Commerce, Industries, Mines and Agriculture (NACCIMA), Lagos Chamber of Commerce and Industry (LCCI), Nigeria Employers Consultative Association (NECA), the Nigerian Association of Small and Medium Enterprises (NASME), Nigerian Association of Small Scale Industrialists (NASSI), and Centre for the Promotion of Private Enterprise (CPPE), emphasised the 4% FOB levy has already been suspended by the federal government in the first place, saying that with the way NSC is secretly reigniting the manufacturing sector may lead to more bleeding of the sector, and result to further shutdown of industries.
They explained that the 4% FOB levy collection by the Nigeria Customs is already heating up the country’s economy and is currently bringing instability into the production of goods locally.
Speaking during an interview with Saturday Telegraph on the 4% FOB impasse, the Deputy President of the Lagos Chamber of Commerce and Industry (LCCI), Princess Olufunlayo Bakare Okeowo explained that it is time for President Tinubu to intervene and call the hierarchy of the Nigeria Customs Service to order, to ensure that the 4% FOB collection by NCS at the nation’s gateway is totally removed and eradicated from the nation’s manufacturing sector henceforth.
She warned that the continued collection of 4% FOB levy from local manufacturers at the ports may worsen Nigeria’s export competitiveness in the continent and thwarted the AfCFTA revenue projection meant for Nigeria’s economy if nothing is urgently done about it.
Bakare Okeowo said: “To me, it’s just a clever way of heating up the nation’s GDP, because the federal government has already said it should be suspended in the first place. I’ve been a victim because they said it’s suspended, but the 4% FOB levy was charged.
Let’s wait till the outcome of the meeting. The OPS pointed out that the levy significantly increases the cost burden on exporters particularly manufacturers and agro-allied producers, who already contend with high logistics, energy, and financing costs.
