ABUJA — The Nigeria Customs Service (NCS) and the Manufacturers Association of Nigeria (MAN) have agreed to exempt select cargo categories from the 4% Free On Board (FOB) import levy, a move aimed at easing cost pressures on industry and supporting economic recovery.
Comptroller-General of Customs Adewale Adeniyi said at the signing ceremony that the accord aligns Customs’ trade-facilitation mandate with manufacturers’ needs, following the Finance Ministry’s temporary suspension of the levy to enable broad stakeholder consultations under the Nigeria Customs Service Act 2023.
“The dialogue gave us an opportunity to openly discuss the operating environment for manufacturing in Nigeria,” Adeniyi noted, adding that the parties identified “multiple areas of mutual interest” and support mechanisms to improve factory operations and competitiveness.
MAN President Otunba Francis Meshioye welcomed the relief, saying the exemptions for machinery, raw materials and aircraft spare parts would help lower production costs, reduce prices of goods and services, and support disinflation. He said the measure should also free up capital for expansion and job creation.
Key points of the agreement include:
- Levy exemptions for priority inputs (notably industrial machinery and raw materials) and aircraft spare parts.
- A joint NCS–MAN working platform to monitor implementation and flag bottlenecks at ports.
- Continued consultations to align import-processing timelines and trade-facilitation measures with manufacturers’ requirements.
The deal is expected to provide immediate cost relief to factories grappling with FX constraints, energy costs and logistics bottlenecks, while the government completes a wider review of tariff and levy structures to spur industrial growth and exports.
