The Manufacturers Association of Nigeria (MAN) has praised the Federal Government’s suspension of the controversial 4% Free-on-Board (FOB) import charge, saying the move has spared the economy from what could have been a major inflationary shock.
According to the Director-General of MAN, Segun Ajayi-Kadir, the levy, which was reintroduced on August 4, 2025, posed a significant threat to the manufacturing sector and the wider economy.
He noted that with inflation already at 21.88% as of July, he said the new charge would have pushed up the cost of raw materials, machinery, and spare parts that are largely imported, inevitably driving consumer prices even higher.
“The suspension just saved our country from a self-inflicted price escalation that could have unsettled the widely acknowledged stability and repurposing this administration has achieved,” the DG said in a statement.
The association noted that after a technical review and extensive consultation with its over 2,500 members across 10 sectors, it became clear that the 4% levy was unsustainable.
MAN argued that the cost implication was significantly higher than the existing 7% surcharge and 1% Comprehensive Import Supervision Scheme (CISS) charge, making Nigerian manufacturers less competitive compared to regional peers.
Ajayi-Kadir warned that had the levy been sustained, it could have encouraged cargo diversion, under-declaration, and informal cross-border trade, further eroding government revenue while burdening legitimate businesses.
“Supporting local manufacturing through predictable and competitive trade charges is the best way to guarantee sustainable growth, create jobs, and safeguard the well-being of over 230 million Nigerians,” he said.
“This suspension is not just a relief for manufacturers; it is a win for the entire economy. It sends a strong signal that the government is willing to listen, engage, and take corrective action to support the productive sector,” MAN declared.
The Federal Government on Monday announced the suspension of the 4% Free on Board (FOB) charge recently imposed on imported goods by the Nigeria Customs Service.