The Nigeria Customs Service (NCS) has announced major relief measures for manufacturers and key sectors by exempting raw materials, spare parts, and certain machinery from the 4% Free on Board (FOB) levy.
This development was revealed in a joint communique signed on Friday by the Comptroller-General of Customs, Adewale Adeniyi, and the President of the Manufacturers Association of Nigeria (MAN), Francis Meshioye. The announcement follows high-level consultations held in Ikeja, Lagos, aimed at reviewing the application of the levy.
The exemptions, approved after discussions with the Minister of Finance and the Coordinating Minister of the Economy, cover strategic imports essential to industrial production, aviation, and healthcare.
Key beneficiaries include:
- Importers of commercial airline spare parts
- Importers of raw materials, machines, and spare parts under Chapters 98 and 99 of the Customs Tariff
- Government projects holding Import Duty Exemption Certificates
- Goods imported for humanitarian or life-saving purposes
- Beneficiaries of the Presidential Initiative to enhance Nigeria’s healthcare value chains
Manufacturers already listed under the tariff chapters are encouraged to apply for pre-release of consignments to avoid demurrage charges.
For manufacturers importing raw materials and equipment not currently classified under Chapters 98 and 99, MAN, NCS, and the Federal Ministry of Finance will collaborate to onboard these businesses swiftly.
Furthermore, manufacturers who have already paid the 4% FOB levy but are not yet onboarded will have their payments credited to future customs transactions once onboarding is completed.
Beyond exemptions, the NCS reaffirmed its commitment to supporting manufacturing by implementing several trade facilitation initiatives, including:
- Developing one-stop-shop frameworks to simplify regulatory processes and reduce bureaucratic delays
- Systematically removing unnecessary checkpoints to cut costs
- Integrating digital solutions for faster trade processing while ensuring national security
- Deploying automated risk assessment systems to lower compliance costs for legitimate operators
The Manufacturers Association of Nigeria praised the NCS for introducing the Authorised Economic Operator (AEO) scheme, which offers special clearance privileges for compliant traders. However, MAN urged the Customs Service to clarify admission guidelines to allow broader manufacturer participation.
Both organizations agreed to formalize consultation mechanisms to enable:
- Regular policy dialogues
- Proactive engagement before customs changes
- Real-time feedback on implementation impacts
- Periodic reviews to evaluate progress and identify new cooperation areas
This agreement marks a significant effort to reduce manufacturing costs, boost industrial productivity, and support the growth of Nigeria’s aviation and healthcare sectors.
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