In a move seen as a major relief for Nigeria’s manufacturing sector, the Nigeria Customs Service (NCS) and the Manufacturers Association of Nigeria (MAN) have reached a landmark agreement on key exemptions from the recently suspended four per cent Free-On-Board (FOB) charge on imports.
The decision marks a significant step toward fostering industrial growth while maintaining the government’s drive for effective revenue collection.
Customs and MAN Collaborate on 4% FOB Charge Reform
4% FOB charge — has become central to the recent dialogue between the NCS and manufacturers after the Federal Ministry of Finance temporarily suspended the policy in September 2025.
The suspension followed concerns that the levy could increase production costs and undermine the competitiveness of local industries already struggling with high inflation, energy costs, and limited access to foreign exchange.
At a joint press briefing after a closed-door meeting in Lagos, Comptroller-General of Customs, Adewale Adeniyi, confirmed that importers of raw materials, machinery, and spare parts will now enjoy exemptions from the 4% FOB charge.
Similar relief was extended to importers of commercial airline parts, healthcare and humanitarian goods, life-saving equipment, and government projects with valid Import Duty Exemption Certificates (IDECs).
Adeniyi explained that the decision reflected the government’s commitment to supporting critical economic sectors, particularly manufacturing, while safeguarding revenue generation through structured frameworks.
Manufacturers to Receive Credit for Previous 4% FOB Charge Payments
Adeniyi announced that payments already made by manufacturers who have not yet been integrated into Customs Tariff chapters 98 and 99 would be credited to their future import-related transactions.
This ensures no financial loss for businesses that previously complied before the policy’s suspension.
He also urged manufacturers who import industrial inputs outside chapters 98 and 99 to apply for inclusion under these categories to benefit from the 4% FOB charge exemption scheme.
“Manufacturers are advised to apply for pre-release of their consignments to avoid demurrage and benefit from faster clearance,” he said.
The NCS boss reiterated that the measure underscores the Service’s resolve to support national economic objectives by reducing operational burdens on industries while ensuring compliance with the Nigeria Customs Service Act 2023.
4% FOB Charge Review to Spur Trade Facilitation and Digital Innovation
Beyond the immediate exemption framework, the NCS revealed broader trade facilitation initiatives designed to streamline regulatory processes, cut unnecessary checkpoints, and integrate digital tools into customs operations.
According to Adeniyi, the Service is developing a “one-stop-shop framework” to eliminate bureaucratic bottlenecks and enhance communication between Customs and other regulatory agencies.
He added that automation and artificial intelligence would soon play key roles in customs clearance, enabling real-time assessment and risk profiling to reduce costs for compliant operators.
“By modernising our trade systems, we are building a customs environment that promotes industrial growth and reduces delays,” Adeniyi said, adding that such improvements would support Nigeria’s goal of achieving industrial self-reliance and export competitiveness.
MAN Commends Customs for Addressing Industry Concerns
Reacting to the development, President of MAN, Otunba Francis Meshioye, commended the Customs Service for demonstrating openness and willingness to address manufacturers’ concerns.
He described the dialogue as a “milestone moment” that will lower production costs, improve competitiveness, and strengthen investor confidence in Nigeria’s manufacturing landscape.
Meshioye identified persistent challenges in the system, including multiple checkpoints, clearance alerts, and delays on the B’Odogwu trade platform, which manufacturers say increase costs and reduce productivity.
However, he expressed optimism that the new 4% FOB charge framework and planned technological reforms would bring significant improvement.
He lauded Adeniyi’s leadership style, noting that since assuming office, the Customs CG had brought “a refreshing blend of professionalism, innovation, and global best practices” to the Service.
Meshioye also called for sustained dialogue between Customs, MAN, and the Ministry of Finance to institutionalise effective policy engagement and resolve emerging challenges.
Joint Mechanism to Strengthen Industrial Policy Dialogue
The NCS and MAN also agreed to establish a formal consultation mechanism to ensure regular engagement on customs policies that impact industrial operations.
This platform will enable proactive feedback, periodic reviews, and continuous monitoring of the 4% FOB charge and other related customs policies.
The two bodies pledged to collaborate on customs reforms that promote job creation, export growth, and foreign exchange savings through import substitution.
They also reaffirmed their shared goal of advancing Nigeria’s economic diversification agenda by nurturing local manufacturing capacity.
A Partnership for Industrial Growth
The recent agreement marks a new phase in Nigeria’s trade administration — one that prioritises cooperation over confrontation between regulators and manufacturers.
By suspending the 4% FOB charge and introducing targeted exemptions, the Federal Government and Customs have demonstrated responsiveness to industry realities.
As Adeniyi noted, the engagement between Customs and MAN reflects “constructive dialogue that produces superior results for all stakeholders.”
He stressed that the Service remains committed to balancing fiscal discipline with industrial development, ensuring a customs environment that stimulates investment, boosts productivity, and enhances national competitiveness.
With the manufacturing sector accounting for a significant share of Nigeria’s non-oil GDP, this renewed partnership could serve as a model for policy coherence and economic transformation across other sectors.
