By Victor Ahiuma-Young
The Nigeria Employers’ Consultative Association, NECA, and former Senate President, Senator Bukola Saraki, have rejected the recent introduction of 4 per cent Customs administration charge on Free on Board, FOB, value by the Nigeria Customs Service, NCS, as contained in the Nigeria Customs Service Act, 2023.
According to NECA, the timing is not only insensitive but will also further worsen the economic situation of Nigerians.
It lamented that “the Nigerian business environment is already burdened with multiple taxes, unpredictable policies, and economic challenges.”
The umbrella body for employers and voice of businesses in Nigeria contended that “while revenue generation remains a priority for the government, imposing this levy amid prevailing economic hardships is ill-timed and detrimental to businesses and Nigerians.”
Director-General of NECA, Mr. Adewale-Smatt Oyerinde, who voiced the group’s rejection of the levy, said: “The Nigerian business environment is already burdened with multiple taxes, unpredictable policies, and economic challenges.
‘’With rising unsold inventories and growing unemployment, policies should support businesses and not further strangulate them. This additional financial import-dependent business will escalate production costs, fuel inflation, and threaten jobs. Ultimately, consumers will suffer from higher prices, worsening an already challenging economic climate.”
Criticising the NCS for prioritizing revenue generation over its core mandate of trade facilitation and economic development, NECA said: “This approach is counter-productive and directly contradicts the government’s Ease of Doing Business agenda.
‘’With revenue target of N10 trillion set for the Nigeria Customs Service in the 2025 budget by the National Assembly, this levy appears to be a desperate attempt to meet revenue projections at the expense of businesses and ordinary Nigerians.
‘’While the government may achieve its revenue goals, the unintended consequences will be severe—higher costs of goods, business closures, rising unemployment, and worsening economic hardship for millions of citizens.
Saraki asks FG to reconsider levy, says it’ll hurt businesses, consumers
Similarly, former Senate President, Bukola Saraki, also raised concerns over the implementation of the 4 per cent free-on-board levy introduced by the Nigeria Customs Service, NCS.
In a post on X, Saraki warned that the new levy would place undue burden on businesses and consumers.
He said: “With our annual imports estimated at N71 trillion, the new 4% Customs administration charge on Free On Board, FOB, value will come to N2.84 trillion.
‘’Does this mean that the Customs Service requires an additional N2.84 trillion annually to do its job?
“Don’t forget they already have a budget and get an incentive percentage on total Customs duties collected.”
