Stakeholders Demand Urgent Review Of Nigeria’s 4% FOB Import Levy Amid Rising Costs

Harboursandport.com: Abuja, Nigeria – August 12, 2025: A coalition of trade experts and industry stakeholders has called on President Bola Ahmed Tinubu to urgently review the controversial 4 per cent Free-on-Board, FOB import levy and associated charges introduced under the Nigeria Customs Service Act 2023. 

The appeal, led by Lucky Amiwero, President of the National Council of Managing Directors of Licensed Customs Agents, NCMDLCA, warns that the new charges could cripple import-dependent sectors and inflate consumer prices nationwide.

The Nigeria Customs Service, NCS began enforcing the 4 per cent FOB levy earlier this year, replacing the previous 1 per cent Comprehensive Import Supervision Scheme, CISS and 7 per cent duty surcharge. The levy, calculated on the value of goods at the port of origin, is now part of a multilayered fee structure that includes cost-based user fees, special service charges, and advance ruling fees.

Amiwero’s letter to President Bola Ahmed Tinubu, highlights a major procedural flaw: the Customs Act was passed without a public hearing in the Senate, despite its sweeping impact on importers, manufacturers, Customs agents, and logistics operators. 

In his words, “The only public hearing was held in the House of Representatives, where stakeholders raised serious concerns,” he wrote. “These were ignored, and the bill was signed into law weeks before the previous administration exited.”

Stakeholders argue that the 4 per FOB levy breaches Section 23 of the Act, which mandates public notification and consultation before new charges are introduced. The policy was briefly suspended earlier this year following backlash, but reinstated five months later.

Experts warn that the new charges could increase duty payments by up to 80 per cent for industries reliant on imported raw materials. For example, a vehicle with an FOB value of N4 million now attracts over N2.1 million in total taxes and levies.

In addition to the FOB levy, the NCS plans to raise annual licence renewal fees for clearing agents by over 1,500 per starting January 2026—from N215,000 to N4 million. New licences will jump from ₦600,000 to ₦10 million.

While Customs officials say the fees will fund modernisation efforts and offer perks like faster processing and digital integration, critics argue the timing is economically insensitive. “This will drive small agents out of business and worsen inflation,” said Sulaiman Ayokunle, media adviser to the Association of Nigerian Licensed Customs Agents.

Amiwero, who has served on multiple presidential and ministerial committees on trade and customs reform, urged the President to suspend the levy and convene a stakeholder review. “We must align our Customs framework with international best practices and economic realities,” he said.

As Nigeria chairs the World Customs Organisation Council, the spotlight is on whether the country can balance trade facilitation with revenue generation—without pricing itself out of global competitiveness.