Customs’ Fresh Levy, NPA’s Hike in Port Charges Criticised
There was a groundswell of opposition to the introduction of a fresh 4 per cent administrative charge on Free-on-Board (FOB) value of imports by the Nigeria Customs Service (NCS) as well as the proposed 15 per cent increase in port charges by the Nigerian Ports Authority (NPA) at the weekend.
The Nigeria Employers’ Consultative Association (NECA), Manufacturers Association of Nigeria (MAN) and a former Senate President, Bukola Saraki, in separate reactions to the new policies, agreed that they were ill-timed and therefore called for a halt to their implementation.
NECA described the introduction of the 4 percent levy by the NCS as a desperate attempt by to meet its N10 trillion revenue target contained in the 2025 proposed national budget, stressing that the new charges would squeeze N2.84 trillion from private businesses and increase duty paid by industries by 80 percent. MAN, on its part, urged the NPA to shelve the proposed 15 percent increase in port charges because it’s ill-advised and signalled a departure from the federal government’s commitment to improving the country’s ease of doing business.
Also, Saraki criticised the NCS, observing that the fee… will further impoverish Nigerians who will bear the brunt of the new policy to extract additional monies from importers.
Director General of NECA, Mr. Adewale-Smatt Oyerinde, said in a public statement that the new charges contradicted the ongoing tax reform efforts led by the Presidential Fiscal Policy and Tax Reforms Committee, chaired by Mr. Taiwo Oyedele, aimed at harmonising taxes and supporting business sustainability.
He further noted that when businesses call for a streamlined tax system, the levy undermines reform efforts and sends a negative signal to investors.
He added that with Nigeria’s annual imports estimated at N71 trillion, the newly introduced levy will impose an additional N2.84 trillion in costs.
