Business
Controversy trails new Custom’s 4% levy on imported goods
New tax will worsen inflation – OPS
Strong reactions have continued to trail the sudden implementation of the newly introduced four percent Customs Processing Charge (CPC) by the Federal Government.
The stakeholders, while calling for the suspension of the tariff implementation, questioned the manner it was hastily implemented.
The Nigeria Customs Service (NCS), it would be recalled, had on February 4, 2025, begun the implementation of a Free-On-Board (FOB) charge of four percent (4%) on all imported products.
The National Public Relations Officer, Abdullahi Maiwada, while announcing the commencement of the new tariff, said its implementation aligns with the Nigeria Customs Service Act 2023.
According to Maiwada, the FOB charge is calculated based on the value of imported goods, including the cost of goods and transportation expenses and is incurred up to the port of loading.
He added that the new charge is essential to drive effective operations of the service.
While acknowledging the concerns of stakeholders’ regarding the collection of the fee, the NCS’s spokesperson assured that extensive consultation is ongoing with the Ministry of Finance to address all concerns raised by the stakeholders.
In its reaction to the commencement of the tariff, the Lagos Chamber of Commerce and Industry (LCCI) expressed surprise over its abrupt implementation.
According to the Director-General of LCCI, Dr. Chinyere Almona, while the chamber recognized that the 4% charge is backed by the provisions of the Nigeria Customs Service Act 2023, specifically under Section 18, it was deeply troubled by the manner of its sudden implementation without consultations with relevant stakeholders.
“Section 23 of the same Act clearly mandates public notification and stakeholder engagement before the introduction of new charges”.
She lamented that the business community, including importers, exporters, freight forwarders, and clearing agents, was not given any prior notice or opportunity to prepare for the additional financial burden.
“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 forex to import critical input for production”.
She pointed out that the business community has been grappling with the planned 50% hike in telecoms tariffs in the face of rising logistics costs due to high energy prices.
“This lack of consultation and sensitization contradicts international best practices, which require trade-related policies to be implemented through transparent and inclusive procedures.
“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.
On the way forward, the chamber advised the government to engage in a structured sensitization process to ensure stakeholders are adequately informed and prepared before its implementation.
Also speaking, the Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, kicked against the charge, saying it would add to the other numerous customs charges, burdening importers and, in extension, businesses and manufacturers.
Yusuf argued that the private sector, which is already suffering from a multitude of challenges, would be forced to absorb the fresh challenge, wary of passing it to the struggling market as another cost.
While expressing sadness the CPPE boss said the additional charge would soon reflect in the marketplace, worsening inflation.
He called on the Federal Government and the NCS to suspend the enforcement of the charge and engage in a structured sensitisation process to ensure stakeholders are adequately informed and prepared before the implementation takes effect.
