In a major boost for Nigeria’s industrial sector, the Nigeria Customs Service (NCS) and the Manufacturers Association of Nigeria (MAN) have sealed a strategic agreement to exempt manufacturers from the contentious 4% Free-on-Board (FOB) charge, while deepening ongoing trade facilitation efforts.
The breakthrough followed a high-level meeting in Abuja between the Comptroller-General of Customs, Bashir Adewale Adeniyi, MFR, and MAN President, Francis Meshioye, FR, convened in line with the Ministry of Finance’s directive suspending the 4% FOB levy and mandating wider stakeholder engagement under the Nigeria Customs Service Act 2023.
Key Highlights of the Deal
Exemption from the 4% FOB charge for manufacturers importing raw materials, machinery, and spare parts under tariff Chapters 98 and 99.
Expansion of the exemption to cover additional manufacturers not currently listed under the chapters.
Establishment of tripartite consultations between NCS, MAN, and the Ministry of Finance to fast-track onboarding and process harmonization.
Introduction of a credit system for manufacturers who already paid the 4% FOB charge, to be applied against future transactions.
Additional exemptions for humanitarian aid, healthcare imports, government projects, and commercial airline spare parts.
During the talks, MAN highlighted operational hurdles facing manufacturers, including multiple checkpoints, system alerts, and glitches on the B’Odogwu platform. The NCS, in response, assured manufacturers of ongoing reforms under its trade facilitation drive, including the Authorised Economic Operator (AEO) programme, Advance Ruling, and Time Release Studies.
CGC Adeniyi described the deal as a milestone in aligning customs policy with Nigeria’s industrial growth agenda.
“This partnership reflects our shared commitment to economic transformation through industrial growth, job creation, and export promotion,” he said.
On his part, MAN President Meshioye welcomed the collaboration, stressing the importance of sustained dialogue.
“Constructive engagement like this is essential to building a predictable customs environment that supports manufacturing excellence,” he noted.
Both organizations agreed to institutionalize a formal consultation framework for continuous dialogue, proactive feedback, and periodic reviews.
The agreement is expected to ease the cost of doing business, boost competitiveness, and strengthen Nigeria’s industrial base while balancing regulatory oversight with economic growth imperatives.
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