In a fervent post on his social media platform, former Senate President Bukola Saraki has called on the Federal Government to reconsider its recently introduced 4% customs administration charge on Free On Board (FOB) values, emphasizing the potential negative implications for the already struggling Nigerian economy.
With annual imports in Nigeria currently estimated at a staggering N71 trillion, the new customs charge translates to a hefty N2.84 trillion. Saraki questioned whether this additional burden is truly necessary, stating, “Does this mean that the Customs Service requires an additional N2.84 trillion annually to do its job?” This new charge raises concerns given that the Customs Service already operates on a budget that includes an incentive percentage based on total customs duties collected.
Saraki highlighted the implications of this extra expenditure, warning that the Customs Service’s planned spending of over $1.5 billion on running costs is untenable in a nation grappling with high poverty rates and a wave of business closures. “In a country where many businesses are shutting down, this is not the time to impose extra costs that will only serve to exacerbate financial hardships,” he stated.
Importers, he pointed out, will likely pass these additional charges directly onto consumers, further straining the budgets of millions of Nigerian households already facing economic challenges. The implications extend beyond luxury goods; the 4% fee will apply across all imports, meaning industries reliant on imported raw materials—whose existing duty rates are as low as 5%—will incur an additional 80% charge on their duties as administrative fees.
“How can this make sense or support the government’s policy of promoting the ease of doing business?” Saraki questioned, urging immediate action from the government to reassess and suspend this new policy.
With the economic climate in Nigeria already precarious, the call for a re-evaluation of the customs fee highlights the urgent need for policies that support local businesses and alleviate the financial burden on everyday Nigerians. As pressure mounts, it remains to be seen whether the government will heed Saraki’s call for reconsideration.
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