In a move aimed at strengthening Nigeria’s industrial base while maintaining an efficient revenue system, the Nigeria Customs Service (NCS) and the Manufacturers Association of Nigeria (MAN) have reached a landmark agreement on strategic exemptions from the recently suspended four per cent Free-On-Board (FOB) charge on imports.
Under the new arrangement, manufacturers importing raw materials, machinery, and spare parts, as well as importers of commercial airlines’ spare parts, healthcare goods, humanitarian and life-saving supplies, and government projects with Import Duty Exemption Certificates (IDECs), will no longer be required to pay the 4% FOB charge.
The Comptroller-General of Customs, Adewale Adeniyi, announced the exemptions following a high-level consultative meeting with MAN officials in Lagos. The engagement was part of a wider stakeholder consultation process under the Nigeria Customs Service Act 2023 and followed a directive from the Minister of Finance, Wale Edun, to suspend the implementation of the levy.
Adeniyi advised manufacturers listed under Chapters 98 and 99 of the Customs Tariff to apply for pre-release of their consignments to avoid demurrage charges. He added that MAN members whose imports are not yet classified under those chapters would be onboarded to benefit from the exemptions. Payments already made by manufacturers not yet onboarded will be retained as credits for future customs transactions once they are enrolled.
Additional exemptions were extended to importers involved in humanitarian and healthcare initiatives, including beneficiaries of the Presidential Initiative for unlocking the healthcare value chain. Adeniyi said the move underscores the government’s commitment to shielding critical sectors from unnecessary cost pressures while safeguarding revenue collection.
Beyond exemptions, the NCS is introducing a series of trade facilitation reforms, including one-stop shop frameworks to streamline regulatory processes, the reduction of non-essential checkpoints, and the adoption of digital solutions to accelerate legitimate trade. Plans are also underway to deploy real-time clearance systems and automated risk assessment tools to reduce compliance costs for manufacturers.
Both the NCS and MAN agreed to institutionalise regular consultations on policies affecting the manufacturing sector. This partnership will focus on economic diversification goals such as job creation, export promotion, import substitution, and the development of industrial clusters supported by predictable trade policies.
The Customs Service also pledged to release clear guidelines for the Authorised Economic Operator (AEO) programme — a global initiative that recognises compliant businesses and secures supply chains — which will replace the outdated Fast Track System.
A tripartite meeting involving the Ministry of Finance, NCS, and MAN will be convened to finalise the expedited onboarding of manufacturers under Chapters 98 and 99.
MAN President, Otunba Francis Meshioye, hailed the agreement as a significant step toward reducing production costs and enhancing industrial competitiveness. He also highlighted persistent challenges, including multiple checkpoints, clearance system alerts, and issues with the B’Odogwu platform, calling for sustained collaboration to resolve them.
Meshioye praised Adeniyi’s leadership, noting that the Customs chief has introduced professionalism and innovation into the service. He expressed optimism that the strengthened partnership between NCS and MAN would foster inclusive policymaking, improve the business environment, and drive Nigeria’s industrial growth.
For small and medium-scale manufacturers, the exemptions could ease import costs, improve access to critical inputs, and enhance competitiveness — a crucial boost for businesses navigating rising production expenses and a challenging economic climate.
