The Lagos Chamber of Commerce and Industry (LCCI) has called on the Nigerian Customs Service (NCS) to suspend the implementation of a four percent Free On-Board (FOB) charge on imports introduced this week.
It accused the federal government and the Service of not properly engaging stakeholders to prepare them for its full implementation.
“While we recognize that the four percent charge is backed by the provisions of the Nigeria Customs Service Act…we are deeply troubled by the manner of its sudden implementation without consultations with relevant stakeholders,” said Chinyere Almona, director general of LCCI in a statement.
Almona pointed out that section 23 of the Act mandates public notification and stakeholder engagement before the introduction of new charges.
“Unfortunately, the business community, including importers, exporters, freight forwarders, and clearing agents, was not given any prior notice or opportunity to prepare for this additional financial burden,” she said.
Read also: Prices seen rising as Customs imposes 4% FOB charge on imports
With Nigeria already grappling with inflation and a weak naira which has raised prices of commodities, the Chamber fears that the new charge could exacerbate economic pressures on businesses, particularly in sectors heavily dependent on imports.
“Currently, businesses grapple with various levies, taxes, and charges. We are also faced with other policy cost implications like a high interest rate, increasing cost of operations due to inflation, and scarcity of FX to import critical input for production,” Almona recounted, also citing the recent 50 percent hike in telecoms tariffs amid rising logistics costs due to high energy prices.
She said that the absence of consultation contradicts international best practices, which prioritise transparent and inclusive trade procedures and would come with consequences, which have already begun.
“The sudden enforcement of this charge is already disrupting business operations, increasing transaction costs, and causing uncertainty in the trading environment. Such an approach is detrimental to economic growth and investor confidence.”
The Chamber asked the NCS to prioritise efficient port operations to ease the import and export of goods and reduce corruptive tendencies as much as it does revenue generation.
In 2024, The Nigerian Customs Service (NCS) recorded its highest-ever revenue collection, generating N6.1 trillion in 2024, surpassing its target of N5.08 trillion by over 20 percent, spurring a proposed increase in the national budget for 2025.
“With the massive revenue generation from the ports, we expect more investment into boosting port infrastructure, process automation, and a conducive business environment to support export earnings and boost our foreign exchange revenue,” Almona said.
She warned that the shock charge could cause congestion at the ports and hurt revenue generation, as traders and clearing agents could hesitate in processing shipments,
“This could lead to delays and possible disruptions in the supply chain,” she warned.
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