Former President of the Senate, Dr. Abubakar Bukola Saraki, has criticised the Federal Government over its newly introduced 4% Customs administration charge on the Free-On-Board (FOB) value of imports, warning that it will worsen economic hardship for Nigerians.
In a statement posted on his official X handle yesterday, Saraki expressed strong opposition to the policy, highlighting the financial burden it would place on businesses and households.
“With our annual imports estimated at ₦71 trillion, the new 4% Customs administration charge on Free On-Board (FOB) value will come to ₦2.84 trillion. Does this mean that the Customs Service requires an additional ₦2.84 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 criticised the policy, pointing out that the Nigeria Customs Service already receives substantial funding and questioning why such a huge additional revenue is necessary for its operations.
Recall that last week, the Nigeria Customs Service (NCS) began enforcing a 4% charge on the Free On-Board (FOB) value of imports in accordance with the provisions of the Nigeria Customs Service Act, (NCSA) 2023.
The FOB charge, which is calculated based on the value of imported goods, including transportation costs up to the port of loading, is supposed to serve “as a measure to enhance the agency’s operational efficiency”, the Comptroller-General of the Service, Bashir Adeniyi, said, in a statement.
Saraki warned that the new policy would significantly increase import costs, which importers would ultimately pass on to consumers, further straining household budgets amid economic difficulties.
“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?” the former Kwara State governor questioned.
The former Senate President emphasized that the policy was ill-timed, especially considering the economic challenges many Nigerians are currently facing. He argued that rather than introducing additional financial burdens, the Government should focus on policies that promote economic growth and ease of doing business.
Saraki urged the Government to immediately put the policy on hold, stressing that it was counter-productive to 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 stated.
