Importers Warn 4% FOB Levy Could Add N4 Trillion to Freight Costs, Fuel Inflation in Nigeria
The Importers Association of Nigeria (IMAN) has raised alarm over the Federal Government’s proposed 4 percent Free-On-Board (FOB) levy on imports, warning that it could add an estimated N4 trillion annually to freight costs. According to the association, the burden will inevitably be passed on to consumers, making goods and services even more expensive in an already inflationary environment.
Speaking at IMAN’s National Executive Committee meeting, the association’s National President and Board of Trustees Chairman, Chief Gilbert Obi, cautioned that the new levy would worsen inflation, disrupt supply chains, and hurt productivity. He described the policy as a “dangerous economic move” capable of destabilizing businesses and further weakening the naira.
Obi explained that the government’s plan to replace existing port charges with the 4 percent FOB levy is significantly higher than the 1 percent charged by peer countries like Ghana and the 15 percent Comprehensive Import Supervision Scheme (CISS) it replaces. “This levy will hike the costs of gas, spare parts, machinery, and raw materials — crippling industries and punishing consumers,” he warned.
He also highlighted rising costs faced by industry players, noting that a 2006 Toyota Corolla now sells for between N6 million and N9 million, while clearing agents’ license renewal fees have jumped from N215,000 to N4 million. New freight forwarder licenses have soared from N500,000 to N10 million. Obi questioned why trillions should be committed to the Customs Service’s modernization programme anchored on the “B’odogwu” software platform, which stakeholders describe as unreliable and likely to become obsolete by January 2026 when the Nigerian Revenue Service takes over collections.
IMAN said it has remained patient amid internal disputes and industry developments but called on colleagues to act professionally to avoid further factionalization. The association urged the government and the Nigerian Customs Service (NCS) to reconsider the policy to prevent what it termed a looming economic crisis for importers, manufacturers, and everyday Nigerians who depend on imported goods.
source: vanguard