The Manufacturers Association of Nigeria (MAN) has hailed the Federal Government’s suspension of the recently reintroduced 4% Free-on-Board (FOB) charge on imports, describing the move as a major relief for the country’s fragile manufacturing sector.
The charge, which came into effect on August 4, 2025, had sparked concerns across the business community over its potential impact on the cost of raw materials, machinery, and spare parts not available locally.
Speaking on behalf of the association, MAN Director General, Segun Ajayi-Kadir, commended the Minister of Finance and Coordinating Minister for the Economy for listening to industry concerns.
“This decision comes as a huge relief to manufacturers and the wider business community. The Minister just saved our country from a self-inflicted price escalation that could have undermined the stability achieved by the administration,” Ajayi-Kadir said.
He likened the scrapped levy to an “own goal” in football, noting that while it was intended to boost government revenue, the measure would have fuelled inflation, worsened the cost of doing business, and discouraged investment.
According to MAN, its technical review and consultations with over 2,500 member companies revealed that the 4% FOB charge would have compounded existing surcharges currently 7% and 1% respectively resulting in higher production costs that would inevitably be passed on to consumers. The association warned that the levy would have driven inflation, already at 21.88% as of July 2025, even higher, while also encouraging cargo diversion and under-declaration.
The group further emphasized the importance of aligning Nigeria’s import levies with regional peers, where comparable charges range between 0.5% and 1%.
While welcoming the suspension, MAN urged the government to go a step further by commissioning an inclusive and independent assessment of existing import charges to determine their adequacy. It also recommended broad stakeholder consultations to ensure that future policies reflect global best practices and support the growth of domestic industries.
“Policies that reduce the cost of doing business and promote local industrialization are vital to sustaining economic growth,” MAN noted, pledging its commitment to continued engagement with government agencies, including the Nigeria Customs Service, to streamline trade processes and foster transparency.
