Despite acting within the ambits of law with the introduction of 4% processing charge, the move by Nigeria Customs Service (NCS) has elicited wide condemnations and criticisms on account of the abrupt nature without any sensitization or port stakeholders engagement.
The sudden implementation of a 4% Customs processing charge has been greeted with calls for immediate suspension and a structured sensitization process, even as a week-long freight forwarders protest has been proposed by a former acting National President of the Association of Nigerian Licensed Customs Agents (ANLCA), Dr. Kayode Farinto.
Farinto, who was speaking during a press conference in Lagos on Tuesday, criticized the lack of due process in rolling out the new charge, arguing that while the levy is backed by law, its execution is flawed.
The provision for the 4% charge is embedded in the Customs Act 2023, specifically in Section 18, which mandates Customs to collect not less than 4% of the free-on-board (FOB) value of imports as a financing mechanism for customs operations.
However, the veteran freight forwarder pointed out that the manner in which the NCS introduced the levy contradicts Section 23 of the same Act, which requires public notification and stakeholder engagement before implementing new charges.
“This increment was imposed without the necessary sensitization of the trading community, as required by law. The Act clearly states that Customs must ensure that all relevant information on importation, exportation, and applicable charges is made publicly available.
“There has been no official circular or public notification on this. It goes against international best practices, and as such, I advise that this charge be withdrawn immediately and a minimum of 90 days be given for proper sensitization before implementation.”
Farinto equally advised freight forwarders to resist hasty payment of the 4% charge, suggesting that cargoes should be left at ports for at least a week in protest. “Agents should not be in a rush to pay this charge. Let us engage in peaceful protest by delaying cargo clearance. If necessary, affected traders will seek legal redress, as this implementation is an imposition and an illegality,” he asserted.
According to him, the issue is not about Customs authority to implement the charge because it is a law that was signed at the twilight of the last administration. However, Customs must follow due procedures and show empathy in implementing a move that would worsen Nigeria’s already declining import trade.
“This would further increase the cost of doing business at the ports and we know that Nigeria’s import volume has been on a downward trend. Additional levies without proper consultation would worsen the situation.
“This is an era where our import volumes are already shrinking. If this continues, we will keep discouraging trade, which will have dire economic consequences. Traders must be informed in advance so they can factor in these costs before shipping their goods. International trade is not a buy-and-sell business; it requires strategic planning,” he argued.
The freight forwarder disclosed plans to submit a formal petition to the presidency and relevant agencies, urging the government to reconsider the timing and approach to implementing the 4% charge.
He stressed that President Bola Ahmed Tinubu’s administration, which has promised to alleviate economic hardships, should not allow policies that could further strain businesses.
