The Importers Association of Nigeria (IMAN) has raised serious concerns over the federal government’s plan to introduce a 4 percent Free On-Board (FOB) levy on imports, warning that the move could add an estimated ₦3 to ₦4 trillion annually to freight costs expenses that would inevitably be passed on to Nigerian consumers.
At its recent National Executive Committee meeting, IMAN’s National President and Board of Trustee Chairman, Gilbert Obi, described the proposed levy as “dangerous” and predicted it would worsen inflation, disrupt supply chains, and hamper overall industrial productivity.
Obi pointed out that the 4 percent levy significantly exceeds the 15 percent Comprehensive Import Supervision Scheme (CISS) it is meant to replace, and far outstrips similar import levies in peer West African countries such as Ghana, where the charge stands at just one percent.
“This policy will fuel inflation, increase the landed cost of goods, and destabilize the naira currency,” Obi warned.
Nigeria’s heavy reliance on imports means that the levy will affect a wide range of essential goods, including gas, spare parts, machinery, and raw materials crucial to manufacturing and production.
Obi highlighted some immediate effects already felt in the market:
- The price of a 2006 Toyota Corolla has surged to between ₦6 million and ₦9 million.
- Renewal fees for clearing agent licenses skyrocketed from ₦215,000 to ₦4 million.
- New freight forwarder licenses have jumped from ₦500,000 to ₦10 million.
While the Customs Service claims the revenue will fund its modernization initiative centered around a software platform called B’odogwu, IMAN members remain skeptical. Many describe the system as unreliable and ineffective, casting doubt on the justification for such a costly levy.
Obi questioned the wisdom of committing trillions of naira to a program expected to become obsolete by January 2026, when the Nigerian Revenue Service (NRS) is set to take over customs collections.
IMAN has maintained a cautious stance amid recent legal disputes and factionalism within the import community, hoping for professional conduct and dialogue to prevail.
“We remained silent initially to avoid partisanship, expecting our colleagues to rethink their approach and prevent further division,” Obi said.
“Unfortunately, ongoing disturbances compelled us to convene this national meeting.”
IMAN is actively campaigning against the implementation of the 4 percent FOB levy, urging the Nigerian Customs Service (NCS) and federal government to reconsider, to protect Nigeria’s fragile economy from additional inflationary pressure and supply chain disruptions.
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