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Manufacturers Slam Reintroduction of 4% FoB Levy, Warn of Inflation, Job Losses

The reintroduction of the four per cent Free on Board (FoB) levy has triggered outrage in the port community, with manufacturers warning that the policy could worsen inflation, cripple operations, and threaten jobs.

Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, in a statement yesterday, expressed shock that the levy resurfaced despite earlier assurances from the Federal Government that it had been suspended.

Confusion has since deepened, as the Nigeria Customs Service (NCS) claimed it had not been officially notified of any suspension, while the government has remained silent on enforcement.

Ajayi-Kadir warned that the levy would have “huge consequences” for manufacturers already struggling under harsh economic conditions. He also decried the persistent malfunction of the B’Odogwu platform, describing it as “comatose” and noting that delays and demurrage had already cost manufacturers billions of naira, leaving many factories battling low stock.

“The idea that the FoB charge streamlines multiple fees and reduces cargo clearance costs is false. Instead, it disrupts the supply chain, raises anxiety among importers, and worsens inefficiencies in the system,” he said.

He faulted the government for introducing the charge without consulting stakeholders, with no clear directives on compliance processes or cost implications. MAN further accused the NCS of failing to assess the levy’s impact on inflation, cost of living, and the fragile manufacturing sector.

Ajayi-Kadir also criticised the lack of integration of the B’Odogwu platform with other trade facilitation agencies, saying this had encouraged inefficiency, rent-seeking, and further delays in cargo clearance.

Supporting his concerns, Managing Director of FAE Limited, Funmilayo Bakare Okeowo, lamented that the B’Odogwu platform had been unstable since its relaunch in June, grinding operations to a halt.

Meanwhile, the Federal Government had earlier assured that the National Single Window (NSW) expected to unify all trade facilitation agencies into a one-stop clearance platform would take off in the first quarter of next year.

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