Bukola Saraki, the former president of the Senate, has expressed his concerns regarding the recent introduction of a 4 percent free-on-board (FOB) levy by the Nigeria Customs Service (NCS). In a post on X on Saturday, Saraki questioned the justification for this levy, cautioning that it could impose significant burdens on both businesses and consumers.
The post reads, “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.”
Furthermore, Saraki raised concerns about the Customs Service's increasing operational costs, asking why the agency is looking to “spend over $1.5 billion annually” when Nigeria is facing high poverty rates and many businesses are shutting down.
He noted that these increased costs will inevitably be passed on to consumers, disproportionately impacting financially vulnerable households. Furthermore, he highlighted that the new 4% fee applies to all imports, not just luxury goods, resulting in an 80% increase in administrative fees for industries relying on imported raw materials—a significant burden considering their existing 5% duty rate. He concluded by questioning the compatibility of this policy with the government's stated objective of fostering a business-friendly environment.
While the Customs Service has asserted that the 4 percent charge on the FOB levy is in accordance with the Nigeria Customs Service Act (NCSA) 2023, Saraki urged the federal government to urgently review and suspend this policy, warning that its implementation would adversely affect Nigerians.