By Bayo Wahab

Bukola Saraki, former senate president, has raised concerns over the implementation of the 4 percent free-on-board (FOB) levy the Nigeria Customs Service (NCS) recently introduced. 

Saraki, in a post on X on Saturday, questioned the rationale behind the levy, warning it would place an undue burden on businesses and consumers.

The post reads, “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.”

The former Senate President also questioned the Customs’ rising operational cost, wondering why the agency seeks to “spend over $1.5 billion annually” when Nigeria grapples with a high poverty index and widespread business closures.

“Importers will inevitably pass these costs on to consumers, further straining the budgets of millions of struggling households.

“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?” he queried.

Although Customs has maintained that the 4 percent charge on the FOB levy aligns with the provisions of the Nigeria Customs Service Act (NCSA) 2023, Saraki called on the federal government to urgently reconsider and suspend the policy, warning that its implementation would hurt Nigerians more.

Vanguard News