…Warns of Looming De-industrialisation
By Yinka Kolawole
Lagos — The Manufacturers Association of Nigeria (MAN) has issued a strong warning against the planned reintroduction of the 4% Free-on-Board (FOB) levy by the Nigeria Customs Service (NCS), describing it as a move that could trigger widespread de-industrialisation in the country.
In a statement released yesterday, the Director General of MAN, Segun Ajayi-Kadir, said the proposed levy would have a catastrophic impact not only on the manufacturing sector but also on the broader business community and Nigerian citizens.
“The association views this new development as an unfortunate and retrogressive one,” Ajayi-Kadir stated, adding that the stakeholder engagement promised by the NCS has not been inclusive, particularly excluding manufacturers—who would be the most affected.
He explained that if implemented, the levy would add to the existing 1% Comprehensive Import Supervision Scheme (CISS) fee paid by manufacturers. This comes at a time when government agencies should be working to reduce the cost of doing business, as seen in other global economies.
“It is equally worrisome that this is coming at a time when our members are already grappling with a 15% hike in port charges, an astronomical increase in import duty rates, and unprecedented energy costs,” he said.
MAN had expected the NCS to rescind what it described as an unpopular and ill-timed decision. “We admonish that the move be scrapped before it degenerates into an economic quagmire,” Ajayi-Kadir warned.
He emphasized the need for policies that facilitate trade and reduce the mounting constraints faced by manufacturers, arguing that the current economic situation does not support additional levies that could further escalate production costs and worsen consumer purchasing power.
“In line with the government’s economic reform agenda to streamline fiscal policies and foster a business-friendly tax regime, we should be witnessing a reduction—not an increase—in levies and fees,” he added.
Ajayi-Kadir concluded by urging all government institutions to focus on lowering business costs, expanding industrial activity, and incentivizing new entrants, especially in light of high business mortality rates.
The post MAN cautions customs against reintroduction of 4% FOB levy appeared first on Vanguard News.