The Nigeria Customs Service (NCS) and the Manufacturers Association of Nigeria (MAN) have reached a landmark agreement to exempt manufacturers from the recently suspended 4% Free-on-Board (FOB) charge, while also strengthening efforts to improve trade facilitation across the country.
The resolution followed a high-level meeting between the Comptroller-General of Customs, Bashir Adewale Adeniyi, MFR, and the President of MAN, Francis Meshioye, FR, held in Abuja. The dialogue was convened in line with the directive of the Federal Ministry of Finance suspending the implementation of the 4% FOB charge and mandating wider stakeholder engagement under the provisions of the Nigeria Customs Service Act 2023.
During the meeting, MAN presented critical concerns affecting manufacturers, including multiple checkpoints, system alerts, and technical hitches on the B’Odogwu platform, all of which have slowed down manufacturing competitiveness.
The strategic engagement produced several resolutions aimed at easing the burden on manufacturers and boosting industrial growth:
Full exemption from the 4% FOB charge for manufacturers importing raw materials, machinery, and spare parts classified 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 fast-track onboarding and simplify processes.
Credit system for manufacturers who have already paid the 4% FOB charge, enabling them to apply the credit toward future transactions after onboarding.
Extended exemptions for humanitarian goods, healthcare-related imports, government projects, and commercial airline spare parts.
The NCS also updated MAN on ongoing trade facilitation initiatives, including the Authorised Economic Operator (AEO) programme, Advance Ruling, and Time Release Studies. MAN expressed strong support for the AEO scheme and requested clear admission guidelines to encourage broader industry participation.
Both organizations agreed to create formal consultation frameworks to ensure regular dialogue, proactive feedback, and periodic performance reviews, with the aim of fostering a more predictable and supportive customs environment.
“This partnership reflects our shared commitment to driving Nigeria’s economic transformation through industrial growth, job creation, and export promotion,” said CGC Adeniyi.
In his remarks, MAN President Meshioye emphasized, “Constructive dialogue like this is crucial to building a customs framework that supports manufacturing excellence and sustainable economic development.”
This engagement represents a major step toward aligning customs operations with Nigeria’s industrial development goals, balancing national revenue generation with policies that foster sustainable growth and global competitiveness in the manufacturing sector.