4% FOB levy to add N4trn annual freight costs-burden — Importers

By Providence Ayanfeoluwa

The Importers Association of Nigeria, IMAN has declared that the 4 percent free on-board, FOB levy is estimated to add N4 trillion annually to freight costs-burden that would be transferred directly to consumers.

Speaking at its National Executive Committee meeting, National President/Board of Trustee Chairman, Chief Gilbert Obi, warned that the levy would worsen inflation, disrupt supply chains and hurt productivity.

He added that the federal government’s plan to replace existing port charges with a new 4 percent FOB levy on import is much higher than the 15 percent Comprehensive Import Supervision Scheme, CISS it replaced.

Obi said peer countries like Ghana maintain just one percent, saying that the new levy would fuel inflation, raise landed costs of goods, and destabilize the naira.

His words: “This is what IMAN in the Southwest zone is fighting to ensure that Nigerian Customs Service, NCS do not implement such dangerous economic policy. The IMAN estimates that the levy could add 3-4 trillion annually to freight costs-burden that will be transferred directly to consumers.

“Nigeria is an import-dependent nation. This levy will instantly hike the costs of gas, spear parts, machinery and raw materials crippling industries and punishing consumers. Already, the consequences are biting, a 2006 Toyota Corolla now costs between N6 to N9 million.

“Clearing agent who once paid N215, 000 for license renewal must now cough out N4 million. New freight forwarder licenses have jumped from N500,000 to N10 million.

“Customs claims the revenue is needed for its modernization programme, anchored on a software platform called B’odogwu. However, stakeholders describe this so-called “Odogwu” as epileptic if not comatose. Why commit trillions to a ghost programme that will be obsolete by January 2026, when the Nigerian Revenue service is set to take over custom collections.

“The IMAN board in council has been patient and watching various developments in the industry particularly after the court case between some of our members. The reason we choose to remain calm and silence was to avoid being seen as taking side or partisan.

“Honestly, we also expected our colleagues to have a rethink and be professionals in their actions, and stop creating unnecessary disturbances leading to factionalization in some states and zones. Unfortunately, the situation did not abate hence the need for this national executive council meeting.”

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