Former Senate President, Dr. Abubakar Bukola Saraki, has strongly criticized the Federal Government’s newly introduced 4% customs administration charge on the Free On-Board (FOB) value of imports, warning that it will exacerbate economic hardship for Nigerians.
In a statement posted on his official X handle on Sunday, Saraki expressed firm opposition to the policy, emphasizing the additional financial burden it would place on businesses and households.
“With our annual imports estimated at N71 trillion, the new 4% customs administration charge on Free On-Board (FOB) value will come to N2.84 trillion. Does this mean that the Customs Service requires an additional N2.84 trillion annually to do its job? Don’t forget they already have a budget and get an incentive percentage on total customs duties collected,” Saraki stated.
He further criticized the policy, questioning the necessity of such a substantial additional revenue stream for the Nigeria Customs Service (NCS), given its existing budgetary allocations and funding mechanisms.
New Policy and Its Economic Implications
Last week, the Nigeria Customs Service (NCS) began enforcing a 4% charge on the FOB value of imports, in line with the provisions of the Nigeria Customs Service Act (NCSA) 2023.
Saraki warned that the policy would significantly increase import costs, ultimately burdening consumers as importers pass on the additional expenses. He stressed that the charge applies across all imports, including raw materials for industries, making production more expensive and undermining the government’s ease-of-doing-business agenda.
“This new fee of 4% is not even restricted to luxury goods but across all imports, so even for industries that import their raw materials whose duties are only 5%, the customs agency will now charge importers an extra 80% of the duty amount as administrative fees! How can this make sense or support the government’s policy of promoting the ease of doing business?” Saraki questioned.
The former Governor of Kwara State emphasized that the policy is ill-timed, especially given the economic difficulties Nigerians are currently facing. He urged the government to focus on policies that stimulate economic growth rather than imposing additional financial burdens on businesses and consumers.
Call for Immediate Reversal
Saraki called on the government to urgently reconsider and suspend the policy, arguing that it contradicts the administration’s economic objectives.
“The government must urgently reconsider this policy and put it on hold immediately. Especially not now with what Nigerians are going through,” he said.
Key Highlights
• New Charge: FG introduces a 4% administrative charge on FOB import value.
• Economic Impact: Saraki warns it will raise costs for businesses and consumers.
• Revenue Concerns: Questions why Customs needs an additional N2.84 trillion annually.
• Call for Reversal: Urges FG to suspend the policy immediately.
