In a landmark move to strengthen Nigeria’s industrial base and ease the cost of doing business, the Nigeria Customs Service (NCS) and the Manufacturers Association of Nigeria (MAN) have reached a strategic agreement to exempt manufacturers from the controversial 4% Free-on-Board (FOB) charge and deepen trade facilitation efforts.

 

 

 

The agreement was announced following a high-level consultation between Comptroller-General of Customs, Bashir Adewale Adeniyi MFR, and MAN President, Francis Meshioye FR, held in Abuja. The meeting was convened in response to the Ministry of Finance’s directive suspending the 4% FOB charge and calling for stakeholder engagement under the Nigeria Customs Service Act 2023.

 

 

 

The dialogue addressed key concerns raised by manufacturers, including multiple checkpoints, system alerts, and technical glitches on the B’Odogwu platform. MAN also provided insights into operational challenges affecting competitiveness in the sector.

 

 

Exemption from 4% FOB charges for manufacturers importing raw materials, machinery, and spares under Chapters 98 and 99 of the Customs Tariff.

 

 

 

Onboarding of additional manufacturers not currently listed under those chapters to benefit from the exemption.

 

 

 

Tripartite consultations between NCS, MAN, and the Ministry of Finance to expedite onboarding and streamline processes.

 

 

 

Credit system for manufacturers who have already paid the 4% FOB charge, allowing future use after onboarding.

 

 

 

Additional exemptions for humanitarian goods, healthcare-related imports, government projects, and commercial airline spare parts.

 

 

 

The NCS also briefed MAN on ongoing trade facilitation initiatives, including the Authorised Economic Operator (AEO) programme, Advance Ruling, and Time Release Studies. MAN commended the AEO scheme and called for clear admission guidelines to encourage broader participation.

 

 

 

Both organizations agreed to establish formal consultation mechanisms for regular dialogue on customs policy, proactive feedback systems, and periodic reviews to assess progress and identify new collaboration opportunities.

 

 

“This partnership reflects our shared commitment to Nigeria’s economic transformation through industrial growth, job creation, and export promotion,” said CGC Adeniyi.

 

 

 

“Constructive dialogue like this is essential to building a predictable customs environment that supports manufacturing excellence,” added MAN President Meshioye.

 

 

 

The engagement marks a significant step toward aligning customs operations with industrial development goals, ensuring that regulatory frameworks support national revenue targets while enabling sustainable growth in the manufacturing sector.