The Nigeria Customs Service (NCS) has granted strategic exemptions from the 4% Free-on-Board (FOB) levy to key economic players, including members of the Manufacturers Association of Nigeria (MAN), commercial airline operators, healthcare goods importers, and government projects holding Import Duty Exemption Certificates (IDECs).
The announcement follows a consultative meeting between MAN President Otunba Francis Meshioye, his executive members, and the Comptroller-General of Customs, Adewale Adeniyi, along with senior officers. The move aims to support industrial growth, reduce compliance costs, and enhance trade facilitation.
At a joint press conference held at MAN headquarters in Ikorodu, Lagos, CG Adeniyi explained that the exemptions align with a directive from the Ministry of Finance following the temporary suspension of the 4% FOB charge and broader stakeholder consultations.
Key exemptions include:
- Manufacturers: Companies importing raw materials, machinery, and spare parts under Chapters 98 and 99 of the Customs Tariff are immediately exempt. Manufacturers with items outside these chapters will be onboarded through a tripartite consultation with the Ministry of Finance, NCS, and MAN.
- Credit for Prior Payments: Any 4% FOB charges already paid by manufacturers awaiting onboarding will be credited toward future customs transactions.
- Commercial Airlines: Spare parts for commercial airlines are now exempt.
- Healthcare: Goods imported under the Presidential Initiative to unlock the healthcare value chain.
- Humanitarian and Government Projects: Goods imported for humanitarian purposes, life-saving initiatives, and government projects with IDECs.
CG Adeniyi emphasized that beyond exemptions, the NCS is implementing additional trade facilitation measures, including:
- One-stop-shop frameworks to streamline regulatory processes and eliminate bottlenecks.
- Reduction of unnecessary checkpoints that add cost without value.
- Digital integration to accelerate legitimate trade while maintaining security standards.
- Technology-driven solutions for real-time clearance and automated risk assessment to lower compliance costs.
MAN President Meshioye highlighted operational challenges faced by manufacturers, prompting further NCS commitments. Both organizations have agreed to formal consultation mechanisms for ongoing dialogue on customs policy, ensuring proactive feedback from the manufacturing sector before policy implementation.
