August 26, 2025
The Director-General of the Manufacturers Association of Nigeria, MAN, Segun Ajayi-Kadir, has expressed concern over the reintroduction of the four per cent Free on Board, FoB, levy after the Federal Government had promised manufacturers and importers that it had been suspended.
The reintroduction of the levy has continued to cause a stir in the port community, with manufacturers warning that the spike in the cost of clearing may have huge consequences for general prices, their continued operation and the value chain
While the Nigeria Customs Service, NCS, claimed it has not been officially informed about the suspension, the government have being silent about its enforcement, making the status of the charge a matter of speculation.
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Ajayi-Kadir, in a statement on Monday, said the levy would have huge consequences for the operation of manufacturers and lamented about the prolonged glitch in B’Odogwu platform, which he said had brought the process of clearing goods at the ports to a standstill.
According to the MAN helmsman, the manufacturers had incurred losses running into billions of naira while they continue to carry heavy demurrage and some firms are short of stock in their factories.
While appealing for the stoppage of the implementation of the FoB charge, Ajayi-Kadir, described as false, the notion that the fee streamlines previous multiple charges and reduces the cost of cargo clearance.
The MAN DG said the FoB charge on the value of imports was not industry-friendly and certainly not growth-oriented under the prevailing tough economic conditions.
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MAN further claimed that the NCS was yet to conduct a proper assessment to ascertain the implications of the charge on inflation, the cost of living of Nigerians and the struggling manufacturing sector.
He lamented that “Most disturbing is the fact that the B’Odogwu platform is yet to be integrated with other relevant trade facilitation agencies of the government.
“This breeds inefficiency and further causes delay in the cargo clearance process, as well as promoting rent-seeking activities, all of which combine to increase the cost of doing business in Nigeria.”
