The Nigeria Customs Service (NCS) has announced a series of strategic exemptions from the controversial four per cent Free on Board (FOB) charge, following high-level consultations with the Federal Ministry of Finance and the Manufacturers Association of Nigeria (MAN).
The exemptions aim to ease operational challenges in the manufacturing sector and align Customs procedures with Nigeria’s economic development goals.
The announcement followed a key consultative engagement between NCS and MAN, convened after the Ministry of Finance directed a temporary suspension of the four per cent FOB levy.
The Comptroller-General of Customs, Bashir Adewale Adeniyi, during a joint press briefing in Lagos on Friday emphasised the Service’s commitment to balancing revenue collection with innovative trade facilitation policies that support industrial growth.
Under the agreed framework, manufacturers who import raw materials, machinery, and spare parts under Chapters 98 and 99 of the Customs Tariff are now exempt from the four per cent FOB charge.
In addition, MAN members not currently listed under those tariff chapters will be onboarded through a fast-tracked process, in collaboration with the Federal Ministry of Finance. Payments already made under the FOB levy by these manufacturers will be credited towards future transactions once onboarding is completed.
Further exemptions were extended to government projects holding Import Duty Exemption Certificates, goods for humanitarian and life-saving purposes, beneficiaries under the Presidential Initiative for unlocking the healthcare value chain, and spare parts for commercial airlines.
The Customs Service also detailed ongoing trade facilitation initiatives including the Authorised Economic Operator (AEO) programme, Advance Rulings, Time Release Studies, and the deployment of technology-driven clearance systems to accelerate trade while maintaining security and compliance.
Meanwhile, the Manufacturers Association of Nigeria, represented by its President, Francis Meshioye, welcomed the engagement and reaffirmed its commitment to continued dialogue.
MAN highlighted key operational challenges such as the four per cent FOB charge, multiple checkpoints, frequent alerts within the clearance system, and technical issues with the B’Odogwu digital platform.
The association however, applauded the AEO programme and urged for clear guidelines to enable more manufacturers to participate.
Both parties agreed to establish formal consultation frameworks to ensure regular engagement on customs policy, evaluate policy impact in real time, and address regulatory bottlenecks that hamper industrial productivity.
The outcome of the consultation signifies an enhanced partnership between the NCS and MAN, focused on creating a predictable and supportive regulatory environment for manufacturers.
Emphasis was placed on supporting Nigeria’s economic diversification goals through job creation, export promotion, import substitution, and industrial development.
The joint effort reflects a shared understanding that collaboration between regulatory authorities and industry stakeholders is essential for sustainable economic growth and governance.
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