The Manufacturers Association of Nigeria (MAN) has called on the Nigerian Customs Service (NCS) to suspend the implementation of the four per cent Free on Board (FOB) levy, citing concerns that it would significantly increase production costs, fuel inflation, and undermine the competitiveness of local industries.
MAN Director-General, Segun Ajayi-Kadir, disclosed this in an interview on Wednesday on Arise news.
Ajayi-Kadir also noted that the levy would raise the cost of doing business in Nigeria, making it harder for manufacturers to compete with imported goods.
According to him, “We are coming from a background of a high-cost environment that needed to be brought down so that we can increase production and ensure that we have a sector that is able to compete with imported products.
“What we have seen is that in charging this 4% FOB, it is going to significantly impact our cost structure, and at the same time, set us apart from other comparable economies, particularly within the West African sub-region”, he said.
 Nigeria’s proposed rate is disproportionately higher compared to neighboring countries like Senegal, Ghana, and Côte d’Ivoire, which charge between 0.5 per cent and one percent on FOB.
Ajayi-Kadir further argued that higher tariffs would not necessarily yield higher revenue, emphasising that the government should focus on incentivizing production and facilitating trade rather than increasing costs for manufacturers.
Nigeria’s manufacturing sector currently contributes less than nine per cent to the country’s Gross Domestic Product (GDP), compared to 15-20 per cent in many other economies.
MAN warned that raising costs would undermine Nigeria’s ability to grow its industrial base and achieve economic diversification.
