Saraki asks FG to reconsider 4% FOB levy, says it’ll hurt businesses, consumers

Bukola Saraki, former senate president, has raised concerns over the implementation of the 4 percent free-on-board (FOB) levy introduced by the Nigeria Customs Service (NCS).

In a post on X on Saturday, Saraki questioned, warning that it would place undue burden on businesses and consumers.

“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?” the post reads.

“Don’t forget they already have a budget and get an incentive percentage on total customs duties collected.”

Saraki also criticised the NCS’ rising operational costs, noting that it now seeks to “spend over $1.5 billion annually” in a country grappling with a high poverty index and widespread business closures.

“Importers will inevitably pass these costs on to consumers, further straining the budgets of millions of struggling households,” he said.

“This new fee of 4% is not even restricted to luxury goods but across all imports, so even for industries that import their raw materials whose duties are only 5%, the customs agency will now charge importers an extra 80% of the duty amount as administrative fees.

“How can this make sense or support the government’s policy of promoting the ease of doing business?”

The former senate president called on the federal government to urgently reconsider and suspend the policy, warning that its implementation would hurt Nigerians more.

On February 5, the NCS said it will implement a 4 percent charge on the FOB value of imports.

The NCS said the directive aligns with the provisions of the Nigeria Customs Service Act (NCSA) 2023.