Customs Exempts Manufacturers, Airlines, Health Sector from 4% FOB Charge
L-R: The Director General of the Manufacturers Association of Nigeria (MAN) is Segun Ajayi-Kadir, Comptroller General of Customs, Bashir Adewale Adeniyi, President of MAN, Otunba Francis Meshioye and Customs DCG Tariff and Trade, Caroline Niagwan at a stakeholder meeting in Lagos on Friday
By DAPO OLAWUNI
The Nigeria Customs Service (NCS) has granted strategic exemptions from the 4% Free-on-Board (FOB) levy to key economic players, including the Manufacturers Association of Nigeria (MAN) members, commercial airline operators, healathcare goods and government projects with Import Duty Exemption Certificates (IDEC).
This major concession, announced on Friday following a consultative meeting between President of MAN, Otunba Francis Meshioye, his executive members and the Comptroller-General of Customs, Adewale Adeniyi with some senior officers, is a significant move to support Nigeria’s industrial growth, reduce compliance costs, and enhance trade facilitation.
Speaking at a joint press conference after the closed door meeting held at MAN headquarters at Ikaja Lagos, the Customs CG, Adeniyi said the decision follows a directive from the Ministry of Finance regarding the temporary suspension of the 4% FOB charge and a required comprehensive stakeholder consultation.
According to him, the exemptions, will apply to several critical sectors including
• Manufacturers: Companies importing raw materials, spares, and machinery that are beneficiaries of concessions under Chapters 98 and 99 of the Customs Tariff are immediately exempt.
• Onboarding for Others: Manufacturers whose imported items are not currently on Chapters 98 and 99 will be onboarded to enjoy the same exemptions. A tripartite consultation involving the Federal Ministry of Finance, NCS, and MAN will be held immediately to expedite this process.
• Credit for Prior Payments: Any 4% FOB payments already made by manufacturers who are yet to be onboarded will be held as credit and utilized for future customs-related transactions.
• Commercial Airlines: Importation of spare parts for commercial airlines is now exempt.
• Healthcare: Goods imported under the Presidential Initiative for unlocking the Healthcare value chain.
• Humanitarian and Government Projects: Goods imported for humanitarian, life-saving, and related purposes, as well as government projects with Import Duty Exemption Certificates, are also exempt.
The joint briefing highlighted a commitment from both the Nigeria Customs Service and MAN to strengthen their collaboration for Nigeria’s economic transformation.
Speaking, the Customs boss assured that “Beyond existing exemptions, the discussions focused on additional trade facilitation
initiatives being implemented by the Nigeria Customs Service to support manufacturing operations.
“These include the development of one-stop shop frameworks designed to
streamline regulatory processes and eliminate bureaucratic bottlenecks, systematic reduction of unnecessary checkpoints that add costs without corresponding value, and integration of digital solutions to accelerate legitimate trade processing as well as maintain security standards”
The Service also outlined technology-driven initiatives aimed at providing real-time clearance capabilities and automated risk assessment systems that reduce compliance costs for legitimate operators.
MAN President, Francis Meshioye on his part, provided valuable insights into operational challenges, which prompted further commitments from the NCS on trade facilitation.
Both organizations have therefore agreed to establish formal consultation mechanisms for regular dialogue on policy developments, ensuring that the manufacturing sector can provide proactive feedback on customs policy changes before implementation.
