MAN Applauds Suspension of 4% FOB Import Charge, Warns Against Inflation Risks

The Manufacturers Association of Nigeria (MAN) has praised the Federal Government and the Minister of Finance & Coordinating Minister for the Economy for suspending the recently reintroduced 4% Free-on-Board (FOB) import charge, which had taken effect on August 4, 2025.

Segun Ajayi-Kadir, mni, Director General of MAN, described the move as a “relief” for manufacturers nationwide, noting that the charge had sparked widespread concern across the sector. “This decision brings immediate succour to our members and the broader business community,” he said. “The Minister just saved our country from a self-inflicted price escalation that could have destabilized the economic gains achieved so far.”

MAN expressed confidence that the Nigeria Customs Service (NCS) would promptly implement the directive across its commands and remove the charge from its portal. The Association also looks forward to the full restoration of the B’Odogwu platform.

The 4% FOB charge, though intended to boost government revenue, was likened by Ajayi-Kadir to an “own goal” in football—one that would have driven up the cost of importing essential raw materials, machinery, and spare parts not produced locally. MAN’s technical assessment, conducted in consultation with over 2,500 members across 10 sectors and 60 sub-sectors, revealed that the charge would have had a more severe impact than the existing 7% surcharge and 1% CISS combined.

With inflation already at 21.88% as of July 2025, the Association warned that the charge would have further strained consumers, encouraged informal cross-border trade, and undermined Nigeria’s competitiveness within the West African region, where similar charges range between 0.5% and 1%.

MAN reiterated its commitment to collaborating with the government and NCS to streamline trade processes, reduce port-related costs, and enhance fiscal transparency. The Association called for an inclusive and independent review of existing charges and their impact on inflation, living costs, and the manufacturing sector.

Furthermore, MAN urged the government to align future policies with the spirit of newly introduced tax laws and to convene stakeholder consultations to determine fair and productivity-enhancing customs charges.

In closing, MAN reaffirmed its support for policies that promote industrialization, reduce business costs, and foster domestic production. The Association remains dedicated to working with the government to build a resilient and competitive manufacturing ecosystem that drives sustainable economic growth.