Former Senate President, Bukola Saraki, has disagreed with the administration of President Bola Tinubu over the new 4% administration charge on Free On Board (FOB) announced by the Nigeria Customs Service.
According to Saraki, the Customs already has budgetary allocations, and there is no need to pile more pressure on importers and Nigerians who are already dealing with a lot of economic pressure.
Naijaonpoint recalls the Customs Service in a statement on Wednesday, by the service’s spokesperson, Abdullahi Maiwada, announced the introduction of a 4 percent fee based on the Free On-Board (FOB) value of imports.
Maiwada clarified that this initiative aligns with the stipulations outlined in the Nigeria Customs Service Act (NCSA) 2023.
This FOB charge is determined by the total value of the imported items, which encompasses both the cost of the goods and the transportation expenses incurred up to the loading port, and is vital for the efficient functioning of the service.
However, Saraki, in a reaction via a statement on Saturday, said the FOB is an unnecessary charge in a country that already has many businesses shutting down due to unfavourable business conditions.
He lamented that importers and business owners would eventually pass the cost down to consumers, thus putting more economic pressure on households and individuals already struggling to survive.
Saraki pointed out that the FOB charge is not even limited to luxury goods despite all the charges the Customs Service already imposes on importers.
He, therefore called on the government to reconsider the policy and put it on hold so Nigerians can have a breathing space.
“With our annual imports estimated at N71 trillion, the new 4% customs administration charge on Free On Board (FOB) value will come to N2.84 trillion. Does this mean that the Customs Service requires an additional N2.84 trillion annually to do its job?
“Don’t forget they already have a budget and get an incentive percentage on total customs duties collected.
“Now, they want to spend more than $1.5 billion on running costs in a country with the poverty index we have and with many businesses closing down.
“Importers will inevitably pass these costs on to consumers, further straining the budgets of millions of struggling households.
“This new fee of 4% is not even restricted to luxury goods but across all imports, so even for industries that import their raw materials whose duties are only 5%, the customs agency will now charge importers an extra 80% of the duty amount as administrative fees!
“How can this make sense or support the government’s policy of promoting the ease of doing business?
“The government must urgently reconsider this policy and put it on hold immediately. Especially not now with what Nigerians are going through,” Saraki wrote.