Saraki Urges FG to Reconsider 4% FOB Levy, Warns of Impact on Businesses and Consumers

Former Senate President Bukola Saraki has expressed concerns over the proposed 4 percent free-on-board (FOB) levy set to be implemented by the Nigeria Customs Service (NCS), warning that it could have severe consequences for businesses and consumers.

In a post shared on X (formerly Twitter) on Saturday, Saraki questioned the necessity of the levy, emphasizing the potential economic burden it would impose.

“With our annual imports estimated at N71 trillion, the new 4% customs administration charge on FOB value will amount to N2.84 trillion. Does this mean that the Customs Service requires an additional N2.84 trillion annually to function?” he wrote.

Saraki noted that the NCS already receives funding through its annual budget and an incentive percentage from total customs duties collected, questioning the justification for the new levy.

He also criticized the NCS’ operational costs, highlighting that it now aims to “spend over $1.5 billion annually” in a country facing widespread poverty and business closures.

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

The former Senate President pointed out that the levy applies to all imports, including essential raw materials, and not just luxury goods. He explained that industries importing materials with a duty of 5 percent would now face an additional 80 percent administrative charge on the duty amount.

“How can this make sense or support the government’s policy of promoting the ease of doing business?” he asked.

Saraki called on the federal government to urgently reconsider and suspend the policy, warning that its implementation would disproportionately hurt Nigerians.

The NCS announced on February 5 that it would begin enforcing the 4 percent charge on the FOB value of imports, in line with the provisions of the Nigeria Customs Service Act (NCSA) 2023.