• Manufacturers fear for sectors’ survival, asks FG to halt 41% CISS fee
• Reps ask FG to suspend telecom tariff hike
The Nigeria Customs Service (NCS) has announced the suspension of the planned implementation of a four per cent Free-on-Board (FOB) charge on imports, as outlined in Section 18(1)(a) of the Nigeria Customs Service Act (NCSA) 2023.
Apparently following the development, the Manufacturers Association of Nigeria (MAN) expressed fear over the continued survival of the real sector, saying its members could no longer cope with the barrage of fees, taxes and levies they are being confronted with daily.
MAN also asked the federal government to halt the 41 per cent Comprehensive Import Supervision Scheme (CISS) fee.
In the same vein, the House of Representatives called on the Minister of Communications, Innovation and Digital Economy, Bosun Tijani, and the Nigerian Communications Commissions (NCC), to suspend the impending hike in telecommunications tariffs until their services improved.
The Customs’ decision followed ongoing consultations with the Minister of Finance and Coordinating Minister of the Economy, Olawale Edun, and other key stakeholders.
The Comptroller-General of Customs, Bashir Adeniyi, who announced this yesterday, said the suspension was to allow comprehensive stakeholder engagement on the framework for implementing the Act.
He said the decision also coincided with the expiration of the contract agreements with service providers such as Webb Fontaine, which were previously funded through the one per cent CISS.
Adeniyi said the NCS viewed it as an opportunity to reassess its revenue framework.
He noted that under the previous system, the separation of the one per cent CISS and the seven per cent cost of the collection led to operational inefficiencies and funding gaps in customs modernisation efforts.
He said the suspension of the four per cent FOB charge would allow further engagement with stakeholders to ensure proper alignment with the Act’s provisions while securing sustainable funding for these modernisation efforts.
Adeniyi further reaffirmed the NCS commitment to implementing the Act in a manner that best serves stakeholders while maintaining its trade facilitation and revenue generation mandates.
He said that a revised timeline for the charge’s implementation would be announced following the conclusion of stakeholder consultations.
Expressing deep concern over the sudden and inopportune introduction and implementation of the four per cent FOB levy by the NCS, the Director-General, Segun Ajayi-Kadir, regretted that this was coming on the heels of the unfortunate addition to the one per cent CISS fee being paid by manufacturers at a time all government agencies should be seeking ways to deescalate cost of doing business in Nigeria, as obtainable in other economies.
He pointed out that even more painful was that it came alongside the planned 15 per cent hike in port charges and when industries were struggling with the astronomical increase in the effective import duty calculations rate.
The DG said all government institutions should recommit to the reduction of the cost of doing business, expanding the scope of businesses and broadening the nation’s revenue base.
He added that the already high rate of calculating the Customs duty exchange rate and the new levy would further escalate the cost of imported raw materials, which had earlier jumped by over 118 per cent from N2.07 trillion in the first nine months of 2023 to N4.53 trillion in the same period in 2024.
Urging the government to immediately direct the Customs to stop the implementation of the four per cent FOB levy, he also said Customs should be mandated to engage with relevant stakeholders and the Presidential Committee on Fiscal Policy and Tax Reform to align with the ongoing landmark and wholesale reform agenda of the government.
“It cannot be the government’s intention to decapitate the productive sector, especially when the President has consistently promised to promote domestic production, incentivise export and quite importantly, create a $1 trillion economy by 2030,” he added.
(Guardian)
