“Manufacturers Hail Suspension of 4% FOB Charge, Call for Fair Review to Protect Economy”

The Manufacturers Association of Nigeria (MAN) has applauded the Federal Government’s suspension of the recently reintroduced 4% Free-on-Board (FOB) charge on imports, describing the decision as a timely intervention that safeguards the manufacturing sector and prevents an escalation of costs for businesses and consumers alike.

The charge, introduced on August 4, 2025, had raised significant concern across industries. Manufacturers warned that the policy would lead to higher import costs for critical inputs—such as raw materials, spare parts, and machinery—that are not available locally. These increased costs, they argued, would inevitably be transferred to consumers, fueling inflation at a time when Nigeria is already grappling with a 21.88% inflation rate (as of July 2025).

Segun Ajayi-Kadir, mni, Director General of MAN, commended the Minister of Finance and Coordinating Minister for the Economy for listening to the voice of the industry. “This suspension comes as a huge relief. The Minister just saved our country from a self-inflicted price escalation that could have destabilized the stability this administration has worked to achieve. While the intention may have been to raise much-needed government revenue, the charge was akin to scoring an own goal in football,” Ajayi-Kadir said.

He added that the suspension provides much-needed breathing space for manufacturers already struggling under high operating costs, energy challenges, and supply chain disruptions. “This decision restores confidence and demonstrates that the government is ready to engage constructively with stakeholders to drive sustainable growth.”

Industry Concerns and Regional Comparisons

MAN’s technical assessments and consultations with its more than 2,500 member companies, spanning 10 sectors and over 60 subsectors, revealed that the 4% FOB charge would have been more punitive than existing levies, including the 7% port surcharge and 1% Comprehensive Import Supervision Scheme (CISS).

By comparison, most West African nations apply FOB charges between 0.5% and 1%. MAN argued that Nigeria’s 4% rate would have made local manufacturers uncompetitive, diverted cargo traffic to neighboring countries, incentivized smuggling, and worsened revenue leakages.

Call for Policy Alignment and Stakeholder Engagement

The association urged the Federal Government and the Nigeria Customs Service (NCS) to initiate an independent review of existing port charges. MAN also called for broad-based consultations with stakeholders—including manufacturers, importers, and trade experts—to establish an appropriate, fair, and globally competitive tariff structure.

“Government should review the outcome of such consultations and ensure that policies are aligned with the spirit of the newly introduced Tax Laws. It is important that revenue generation measures reinforce, not undermine, Nigeria’s broader economic reform agenda,” MAN stressed.

The Way Forward

MAN reaffirmed its commitment to supporting the government’s drive toward industrialization, economic diversification, and reduced dependence on imports. The association emphasized that eliminating constraints to manufacturing—such as high energy costs, port inefficiencies, and multiple levies—remains key to unlocking Nigeria’s $1 trillion economy ambition.

“We urge the Federal Government to continue implementing policies that make Nigeria a competitive manufacturing hub. A stable, transparent, and supportive business environment is vital for productivity, job creation, and sustainable growth,” Ajayi-Kadir concluded.

The Manufacturers Association of Nigeria (MAN) has applauded the Federal Government’s suspension of the 4% Free-on-Board (FOB) import charge, calling it a timely relief for manufacturers and consumers. MAN urges inclusive consultations to review port charges and align trade policies with Nigeria’s economic reform agenda.