Great opposition arises to the introduction of a fresh 4 per cent administrative charge on Free-on-Board (FOB) value of imports by the Nigeria Customs Service (NCS) and the proposed 15 per cent increase in port charges by the Nigerian Ports Authority (NPA) at the weekend.
The manufacturers Association of Nigeria (MAN), Nigeria Employers’ Consultative Association (NECA), Manufacturers Association of Nigeria (MAN) and a former Senate President, Bukola Saraki, in separate reactions to the new policies, agreed that these increments were coming at the wrong time and therefore called for a halt to their implementation.
NECA said that the introduction of the 4 per cent levy by the NCS as a desperate venture to meet its N10 trillion revenue target contained in the 2025 proposed national budget, stating that the new charges would squeeze N2.84 trillion from private businesses and increase duty paid by industries by 80 per cent.
MAN, on its part, urged the NPA to shelve the proposed 15 per cent increase in port charges because it’s ill-advised and signalled a departure from the federal government’s commitment to improving the country’s ease of doing business.
Also, Bukola Saraki criticised the NCS, observing that the new policy force and extract additional money from importers.
Director General of NECA, Mr. Adewale-Smatt Oyerinde, said in a public statement that the new charges contradicted the ongoing tax reform efforts led by the Presidential Fiscal Policy and Tax Reforms Committee, chaired by Mr. Taiwo Oyedele, geared at harmonising taxes and supporting business sustainability.
Oyerinde said: “With a revenue target of N10 trillion set for the NCS in the 2025 budget by the National Assembly, this levy appears to be a desperate attempt to meet revenue projections at the expense of businesses and ordinary Nigerians.
“While the government may achieve its revenue goals, the unintended consequences will be severe. Consequences such as increase in the costs of goods, business closures, rising unemployment, and worsening economic hardship for millions of citizens.”
The NECA chief also criticised the NCS for prioritising revenue generation over its core mandate of trade facilitation and economic development.
NECA, therefore, called for an immediate reversal of the levy and urged the government to engage with stakeholders to develop a more sustainable and business-friendly approach to revenue generation.
Ajayi-Kadir pointed out that imposing any additional financial strain on manufacturers through increased port tariffs would aggravate the challenges operators face in the real sector.
He said: “Nigeria’s current economic climate is characterised by rising inflation, foreign exchange challenges, and declining industrial capacity utilisation.
“Many businesses are experiencing a worrying downturn due to unsustainable operating costs. Increasing port tariffs is therefore ill-timed and could signal a departure from the government’s avowed efforts and commitment to the ease of doing business.