A fresh wave of discontent has erupted across Nigeria’s business and manufacturing sectors following the introduction of a new 4% administrative charge on the Free-on-Board (FOB) value of imports by the Nigeria Customs Service (NCS) and a proposed 15% hike in port charges by the Nigerian Ports Authority (NPA).
Industry stakeholders, including the Nigeria Employers’ Consultative Association (NECA), the Manufacturers Association of Nigeria (MAN), and former Senate President Bukola Saraki, have condemned these policies, warning that they will yield dire economic consequences.
NECA strongly criticized the newly imposed 4% levy by the NCS, describing it as a desperate move to meet its ambitious N10 trillion revenue target outlined in the 2025 national budget. The association warned that the new charges would extract an additional N2.84 trillion from private businesses, leading to an 80% increase in import duty for industries.
According to NECA’s Director General, Adewale-Smatt Oyerinde, the levy contradicts ongoing tax reforms aimed at harmonizing Nigeria’s tax system and reducing business costs.
“While the government may achieve its revenue goals, the unintended consequences will be severe—higher costs of goods, business closures, rising unemployment, and worsening economic hardship for millions of citizens,” Oyerinde stated.
He also noted that Nigeria’s N71 trillion annual import volume means the new levy will significantly inflate production costs for industries that rely on imported raw materials. The result, he warned, would be higher inflation, deeper poverty, and a declining investment climate.
Furthermore, Oyerinde accused the NCS of prioritizing revenue generation over its core mandate of facilitating trade and driving economic development. He urged the government to reverse the levy immediately and engage with stakeholders to find more sustainable means of revenue generation.
Manufacturers Warn of Economic Collapse
The Manufacturers Association of Nigeria (MAN) also weighed in, urging the NPA to suspend its planned 15% increase in port tariffs, warning that the decision is ill-timed and contradicts the federal government’s pledge to enhance Nigeria’s ease of doing business ranking.
MAN’s Director General, Segun Ajayi-Kadir, lamented that the manufacturing sector is already struggling under the weight of high production costs, foreign exchange volatility, and rising energy prices.
“Nigeria’s current economic climate is characterized by rising inflation, foreign exchange challenges, and declining industrial capacity utilization. Imposing additional costs on manufacturers will only worsen the crisis,” Ajayi-Kadir said.
He further warned that the increase in port tariffs would make Nigeria’s ports less competitive in regional trade, leading to cargo diversion to neighboring countries like Ghana and the Benin Republic. This, he said, would reduce government revenue and fuel smuggling.
MAN suggested that the NPA should focus on reducing turnaround time for vessels, improving cargo clearance efficiency, and eliminating bureaucratic bottlenecks rather than increasing fees.
“Aligning Nigerian port charges with global best practices will attract more trade volume and increase revenue naturally, without strangulating businesses,” Ajayi-Kadir added.
Former Senate President Bukola Saraki joined the opposition, calling the 4% customs levy an unjustified financial burden on Nigerians. Taking to his verified X (formerly Twitter) handle, Saraki warned that the levy will further impoverish citizens, as importers will transfer the extra costs to consumers.
“With our annual imports estimated at N71 trillion, the new 4% customs charge will amount to N2.84 trillion. Does this mean that Customs needs an additional N2.84 trillion every year to function?” Saraki questioned.
He pointed out that the NCS already receives a budget allocation and incentives from total customs duties collected. Now, he argued, the agency wants to impose an additional $1.5 billion in operating costs at a time when the majority of Nigerians are struggling.
“Importers will inevitably pass these costs on to consumers, straining household budgets and worsening economic hardship,” Saraki stressed.
Saraki also criticized the blanket nature of the levy, which applies to all imports, including raw materials essential for industries. This means businesses that pay just 5% in import duties for raw materials will now face an 80% duty increase due to the new administrative fee.
“How does this support the government’s ease of doing business policy? This policy must be reconsidered immediately,” he insisted.
NCS and NPA Justify the Policies
Despite the backlash, the Nigeria Customs Service defended the levy, saying it is in accordance with the Nigeria Customs Service Act (NCSA) 2023. The NCS stated that the 4% FOB charge is necessary for the effective operation of the service and that extensive consultations had been held before its implementation.
The NPA, on its part, defended its 15% tariff hike, arguing that it is essential to address the aging infrastructure, obsolete equipment, and slow port expansion. The agency noted that Nigerian port charges had not been reviewed since 1993 and that an adjustment was long overdue to bring local ports in line with international standards.
“This increase is necessary to improve port efficiency and competitiveness,” the NPA stated.
A Pattern of Increasing Business Costs
This latest round of levies and tariff increases follows a pattern of rising costs for businesses in Nigeria. Recently, the Central Bank of Nigeria (CBN) reintroduced a controversial cybercrime levy, and multiple agencies have raised taxes and fees to meet revenue targets.
“The government appears more focused on revenue extraction than creating an enabling business environment,” NECA lamented.
The impact is already evident, with Nigerian manufacturers struggling under high inflation, unstable foreign exchange rates, and dwindling consumer purchasing power. Many businesses, including multinationals, have exited Nigeria, citing an unfavorable business climate.
What’s Next?
The growing opposition to these new charges suggests that pressure may mount on the government to reconsider or suspend their implementation. NECA and MAN have called for an urgent dialogue with the federal government, urging policymakers to focus on long-term economic reforms rather than short-term revenue grabs.
Whether the government will heed these calls remains uncertain. However, one thing is clear: if these levies proceed, they could trigger an economic downturn, leading to higher inflation, more job losses, and reduced investor confidence.
For now, importers, manufacturers, and ordinary Nigerians can only brace for tougher times ahead.
