MAN Warns of Rising Prices as FG Reintroduces 4% Import Levy

The Manufacturers Association of Nigeria (MAN) has cautioned that Nigerians may soon face higher prices for goods following the Federal Government’s reintroduction of a 4% Free-on-Board (FOB) charge on imports.

In a statement signed by its Director-General, Segun Ajayi-Kadir, MAN said the policy, which took effect on August 4, 2025, will worsen the already harsh operating environment for manufacturers, push up production costs, and further fuel inflation.

“Costs associated with the 4% FOB charge will generally raise the import cost of raw materials not available locally above the N6.6 trillion recorded in 2024. Clearly, the burden will be passed on to consumers and this will intensify inflation, which already stood at 21.88% in July 2025,” the association stated.

Mounting Inflationary Pressures
The group stressed that the timing of the levy is particularly concerning, as manufacturers are already battling multiple challenges:

• Exchange rates above N1,540/$
• Alternative energy costs exceeding N1.1 trillion
• Interest rates averaging over 35%

MAN also raised concerns about Nigeria’s competitiveness in West Africa, pointing out that countries such as Ghana, Côte d’Ivoire, and Senegal maintain inspection or collection fees of only 0.5%–1% FOB, with higher charges limited to luxury imports.

“A uniform 4% levy in Nigeria risks diverting cargo to neighboring ports, encouraging informal cross-border sourcing, and promoting under-declaration of imports,” the group warned.

Customs Glitches Aggravate Importers’ Woes
Beyond the levy, MAN criticized persistent failures of the Nigeria Customs Service (NCS) B’Odogwu platform, which it said has stalled cargo clearance, increased demurrage costs for importers, and caused factory stock-outs.

The association faulted the NCS for failing to adequately consult stakeholders before rolling out the new policy, describing the move as “anti-industry” and inconsistent with the government’s industrialization and diversification agenda.

MAN’s Recommendations

• Suspend the 4% FOB charge until December 31, 2025, to allow for impact assessment and consultations.
• Retain the existing 1% Comprehensive Import Supervision Scheme (CISS) and 7% collection fee structure in the meantime.

“The Nigerian manufacturing sector is shrinking. Introducing an additional blanket levy at this time will only worsen the situation,” Ajayi-Kadir said.

Government’s Position
The Comptroller-General of Customs (CGC), Adewale Adeniyi, recently explained that the new 4% FOB charge was introduced to replace multiple import levies, including the 1% CISS and 7% cost of collection.

According to him, the new structure will simplify the process by requiring importers to pay only the 4% charge upfront, with no additional levies applied.