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Manufacturers To Get Credit Relief On Past 4% FOB Payments

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Manufacturers who have already paid the 4% Free on Board (FOB) charge but are not yet onboarded, under Customs Tariff Chapters 98 and 99, will not lose their money, the Comptroller General of Nigeria Customs Service (NCS), Bashir Adewale Adeniyi MFR, has assured.

According to the NCS boss, Adeniyi, such payments will be held as credit and applied to future customs transactions after their onboarding.

This was one of the major outcomes of a high-level consultation between the NCS and the Manufacturers Association of Nigeria (MAN), a meeting convened to align customs operations with Nigeria’s industrial growth objectives and resolve long-standing bottlenecks in the manufacturing supply chain.

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The dialogue followed the Ministry of Finance’s directive suspending the 4% FOB charge and provided a rare opportunity for comprehensive stakeholder engagement under the Nigeria Customs Service Act 2023.

Both sides described the exchange as open, frank, and solution-driven, with a shared commitment to supporting Nigeria’s economic diversification agenda.

At the meeting, MAN President Otunba Francis Meshioye outlined the key operational challenges facing manufacturers, ranging from multiple checkpoints on trade routes and frequent clearance system alerts to technical glitches on the B’Odogwu platform.

These, he said, had eroded competitiveness and increased costs for manufacturers struggling to meet production targets.

Meshioye also seized the opportunity to congratulate the Customs boss on his emergence as the Chairman of World Customs Organisation (WCO) Council.

The Comptroller-General of Customs, Adeniyi, reaffirmed the Service’s commitment to balancing its revenue collection duties with trade facilitation.

He highlighted the Economic Operator Programme (AEO), Advance Ruling framework, and Time Release Study as part of ongoing reforms to make clearance processes faster and more predictable.

Beyond the credit scheme for 4% FOB payments, the consultation produced several other key outcomes. Manufacturers importing raw materials, machines, and spare parts under Chapters 98 and 99 of the Customs Tariff will now benefit from full exemptions from the 4% FOB charge.

MAN members not yet onboarded will be fast-tracked, and a tripartite task team comprising the Ministry of Finance, NCS, and MAN will develop modalities for expedited onboarding.

Exemptions, however, were also extended to government projects with import duty waivers, humanitarian and life-saving goods, commercial airline spare parts, and equipment for the Presidential Initiative on Healthcare value chain.

Both organizations agreed to establish a formal consultation mechanism for regular policy dialogue, real-time feedback, and periodic review of progress. NCS also committed to streamlining checkpoints, integrating digital clearance systems, and expanding technology-driven solutions for automated risk assessment and real-time cargo release.

Meshioye commended NCS for the steps taken, describing the outcomes as “a strong signal of government’s commitment to creating a competitive and supportive manufacturing environment.”

Adeniyi, in turn, emphasized that constructive dialogue was key to building a customs system that supports economic growth while safeguarding national revenue.

The strengthened partnership between NCS and MAN is expected to unlock greater investment in the sector, promote local production, conserve foreign exchange through import substitution, and create jobs across Nigeria’s industrial value chains.

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