In a significant move to strengthen industrial growth and economic development, the Nigeria Customs Service (NCS) and the Manufacturers Association of Nigeria (MAN) held a high-level strategic consultation today in Abuja.

The meeting followed a directive from the Federal Ministry of Finance regarding the temporary suspension of the 4% Free on Board (FOB) surcharge, creating a platform for broad stakeholder engagement as mandated by the Nigeria Customs Service Act, 2023.

The session featured frank and constructive dialogue on critical issues affecting Nigeria’s manufacturing environment. Both parties reaffirmed their shared commitment to advancing Nigeria’s economic transformation through improved manufacturing performance and enhanced trade facilitation.

Key Outcomes from the Consultation

One of the major announcements from the meeting was the approval of strategic exemptions from the 4% FOB surcharge for several categories of manufacturers. This followed consultations between the NCS and the Honourable Minister of Finance.

The exemptions cover:

• Manufacturers importing raw materials, spares, and machinery under Chapters 98 and 99 of the Customs Tariff.
• MAN members not currently under these chapters will be onboarded to enable access to the exemption.
• The tripartite collaboration between the Federal Ministry of Finance, NCS, and MAN will expedite this onboarding process.
• Any 4% FOB charges already paid by manufacturers awaiting onboarding will be credited for future transactions.
• Exemptions also extend to:
  • Government projects with Import Duty Exemption Certificates (IDEC)
  • Goods imported for humanitarian and life-saving purposes
  • Beneficiaries of the Presidential Initiative on unlocking the healthcare value chain
  • Spare parts for commercial airlines

Issues Raised by MAN

The Manufacturers Association identified several pressing challenges impacting industrial operations, including:

• Implementation concerns around the 4% FOB funding model
• Multiple checkpoints hampering trade facilitation
• Redundant alerts within the customs clearance system
• Glitches on the B’Odogwu platform

In response, the NCS detailed its ongoing trade facilitation initiatives, which include:

• Authorised Economic Operator (AEO) scheme
• Advance Ruling system
• Time Release Studies aimed at improving cargo clearance efficiency

The AEO programme, in particular, was lauded by MAN, with a mutual agreement that NCS would issue a clear guideline for participation.

A Shift Towards Modern Trade Infrastructure

Further discussions centered on future-focused initiatives such as:

• Development of a one-stop shop framework to streamline regulatory processes
• Reduction of excessive checkpoints and elimination of unnecessary bottlenecks
• Deployment of digital solutions for real-time clearance and risk assessment
• Strengthened technology partnerships to support seamless trade operations

Institutionalizing Regular Dialogue

To sustain momentum, both organizations agreed to institutionalize regular consultations through:

• Pre-implementation engagement on policy changes
• Real-time feedback mechanisms to assess impact
• Scheduled review meetings to evaluate progress and identify new collaboration areas

A Unified Vision for Economic Transformation

The engagement concluded with a unified commitment from NCS and MAN to support:

• Job creation
• Export promotion
• Import substitution
• Foreign exchange conservation
• Development of industrial clusters

Both institutions emphasized that predictable regulatory environments, underpinned by robust dialogue and innovation, are crucial to sustaining growth.

The Nigeria Customs Service pledged to maintain ongoing consultations with manufacturers, implement technology-driven reforms, and provide regular policy updates. MAN, in turn, committed to supporting regulatory compliance among its members and contributing industry insights to shape effective customs policies.

This engagement marks a renewed partnership between two key institutions, demonstrating that structured collaboration can deliver measurable outcomes for national economic advancement.