Lagos: The Nigeria Customs Service (NCS) and the Manufacturers Association of Nigeria (MAN) have reached an agreement on strategic exemptions from the recently suspended four per cent Free on Board (FoB) charge. Additionally, they have introduced new trade facilitation measures aimed at easing manufacturing operations and bolstering Nigeria's industrial growth.
According to News Agency of Nigeria, the decision was made at a joint consultative meeting between the two organizations in Lagos, convened in accordance with the Nigeria Customs Service Act 2023, following the directive of the Minister of Finance to temporarily suspend the four per cent FOB levy. Comptroller-General of Customs, Bashir Adeniyi, highlighted that this engagement provides an opportunity to balance the Service's revenue mandate with its trade facilitation objectives.
Adeniyi further explained that the exemptions demonstrate the government's commitment to protecting critical sectors, particularly manufacturing, while maintaining an efficient revenue collection system. After consultations with the Minister of Finance and the Coordinating Minister of the Economy, approval was granted for strategic exemptions from the four per cent FoB charges on imports, including raw materials, spares, and machines by manufacturers benefiting from concessions under chapters 98 and 99 of the Customs Tariff.
Manufacturers currently under chapters 98 and 99 are advised to apply for pre-release of consignments to avoid demurrage payments. The NCS, MAN, and the Federal Ministry of Finance will collaborate to include manufacturers not yet on chapters 98 and 99, with immediate tripartite consultations to expedite the onboarding process. Payments already made by manufacturers not yet onboarded to these chapters will be credited for future customs-related transactions.
The Nigeria Customs Service is committed to ongoing consultation with manufacturing sector stakeholders, developing trade facilitation infrastructure, implementing technology solutions to reduce compliance costs, and providing regular policy updates. Additional exemptions have been granted for government projects with import duty exemption certificates, humanitarian and life-saving goods, commercial airline spare parts, and beneficiaries of the Presidential initiative for unlocking the healthcare value chain.
Mr. Francis Meshioye, President of MAN, described the outcome as a milestone that would help reduce production costs and improve industrial competitiveness. He highlighted operational challenges faced by the manufacturing sector, such as the implementation of the four per cent FoB charge as funding for NCS operations, multiple checkpoints, multiple alerts in the clearance system, and platform glitches.
Meshioye, however, acknowledged the Authorised Economic Operator (AEO) scheme and agreed that clear guidelines for admission would be issued by the Nigeria Customs Service. He expressed MAN's commitment to engaging in policy dialogues, providing sector-specific expertise for customs policy development, supporting member compliance, and collaborating in developing industry best practices.