In a major policy breakthrough, the Nigeria Customs Service (NCS) and the Manufacturers Association of Nigeria (MAN) have reached an agreement on key exemptions from the recently suspended four per cent Free-On-Board (FOB) charge on imported goods.
Under the new arrangement, manufacturers who import raw materials, machinery, and spare parts alongside importers of healthcare, humanitarian, and life-saving goods, as well as government projects covered by Import Duty Exemption Certificates (IDECs) will no longer pay the 4% FOB charge.
Comptroller-General of Customs, Adewale Adeniyi, announced the exemptions after a joint consultative meeting with MAN officials in Lagos. The move follows the directive by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, who earlier ordered the suspension of the charge pending further review.
Adeniyi explained that the decision was made after extensive stakeholder consultations as mandated by the Nigeria Customs Service Act 2023.
He advised manufacturers under chapters 98 and 99 of the Customs Tariff to apply for pre-release of consignments to avoid demurrage, while those not yet captured under the chapters would be onboarded to benefit from the exemptions.
He also clarified that payments already made by manufacturers before onboarding would be treated as credits for future customs transactions.
Other exemptions cover government projects with IDECs, commercial airline spare parts, and humanitarian imports under the Presidential Initiative for unlocking the healthcare value chain.
According to Adeniyi, the move reflects the federal government’s resolve to support manufacturing and other critical sectors while sustaining efficient revenue collection.
He noted that Customs is introducing new trade facilitation measures, including a one-stop regulatory framework, fewer checkpoints, and the integration of digital solutions to fast-track legitimate trade and reduce compliance costs.
Both Customs and MAN also agreed to institutionalise regular consultation mechanisms to ensure consistent policy engagement, feedback channels, and review meetings.
These are expected to help strengthen customs operations, enhance transparency, and support industrial growth.
Adeniyi emphasised that the engagement demonstrates government’s commitment to economic diversification through job creation, export promotion, and foreign exchange conservation via import substitution.
MAN President, Otunba Francis Meshioye, lauded the agreement as a “milestone achievement” that would lower production costs and boost industrial competitiveness.
He, however, highlighted persistent challenges such as multiple checkpoints, excessive alerts, and technical glitches in the B’Odogwu clearance platform.
Meshioye commended Adeniyi for fostering professionalism and innovation since assuming office, noting that the renewed collaboration would deepen trust and improve policy implementation.
Both institutions reaffirmed their commitment to continuous dialogue, improved customs processes, and building a trade environment that enhances manufacturing excellence while meeting national revenue and security objectives.
