Raw materials, replacement parts, and some machinery are free from the 4% Free on Board duty, according to the Nigeria Customs Service, which has announced major relief measures for manufacturers and important economic sectors.
Adewale Adeniyi, the Comptroller-General of Customs, and Francis Meshioye, the President of the Manufacturers Association of Nigeria, jointly signed a statement on Friday that detailed the development. The agreement came after both sides held a high-level consultation on the levy’s implementation in Ikeja, Lagos.
The statement stated that the exemption was approved following discussions with the Coordinating Minister of the Economy and the Minister of Finance. It includes strategic imports that are essential to aviation, healthcare, and industrial output.
Among those excluded from the charge are importers of spare parts for commercial airlines. Importers of machinery, replacement parts, and raw materials covered by Chapters 98 and 99 of the Customs Tariff are also exempt. It is recommended that manufacturers who are already covered by these chapters seek for pre-release of consignments in order to prevent demurrage fees.
The statement said that measures would be taken to quickly onboard MAN members who import equipment and raw materials that aren’t currently covered by Chapters 98 and 99 so they can also take use of the exemption.
In light of this, the Federal Ministry of Finance, MAN, and NCS have decided to collaborate closely in order to guarantee the prompt inclusion of these producers. To define the modalities for this onboarding process, a tripartite conversation is anticipated to start right away.
For manufacturers who have previously paid the 4% FOB charge but have not yet been onboarded under Chapters 98 and 99, the announcement also provided relief. After their onboarding is finished, these funds will now be credited to their accounts and used for upcoming customs-related purchases.
It further emphasised that the exclusions apply to beneficiaries of the Presidential Initiative, which aims to unleash Nigeria’s healthcare value chains, government initiatives with Import Duty Exemption Certificates, and products imported for humanitarian or life-saving causes.
According to the NCS, the exclusions show its dedication to bolstering important areas of the Nigerian economy while upholding its revenue-generating responsibilities.
Discussions centred on other trade facilitation measures being carried out by the NCS to promote manufacturing operations, in addition to the current exemptions. According to the statement, these include the creation of one-stop-shop frameworks to expedite regulatory procedures, lessen bureaucratic bottlenecks, and systematically eliminate pointless checkpoints that increase expenses without providing value.
Other improvements include the integration of digital technologies to speed trade processes while maintaining national security, and technology-driven efforts that enable real-time clearance capabilities. Automated risk assessment solutions are also being rolled out to decrease compliance expenses for legitimate operators.
The NCS’s introduction of the Authorised Economic Operator scheme, which grants conforming traders enhanced clearance rights, was praised by MAN in its response. To allow more manufacturers to take use of the program, the organisation encouraged the agency to establish explicit requirements for enrolment.
Both organisations also decided to create official consultation procedures in order to improve cooperation. Regular policy creation discussions, proactive customs change involvement prior to implementation, real-time feedback mechanisms to gauge impact, and recurring review sessions to gauge progress and identify new areas of collaboration are all made possible by this.
The consultations’ outcome is a significant step in lowering manufacturing costs, increasing industrial efficiency, and maintaining the expansion of Nigeria’s healthcare and aviation industries.
The Customs Service and MAN have shown a common commitment to striking a balance between the country’s revenue requirements and the necessity of bolstering the productive sectors of the economy by exempting essential imports from the 4% FOB fee and pledging to further facilitate trade.
